China Powers of Retailing 2013

Deloitte China CB Industry is pleased to present the new thought leadership report – China Powers of Retailing 2013.

CCFA initiated a survey on China chain retail industry in early 2013, and received valid questionnaires from 192 companies and 108 typical stores. Based on the survey findings and Deloitte methodology, we analyzed the business operations of supermarkets, department stores, convenience stores and specialty stores over the previous year, and summarized the trends of industry development. The key findings are:

• In 2012, the year-on-year growth of revenue and net profit of the listed retail companies are 12.2% and -7.7% respectively, where the growth in revenue has slowed down significantly, and it is the first record of negative growth in net profit over the years
• The year-on-year growth of the gross retail amount of Top 100 retailers across China has reached its record low over the last six years, which is only 10.8%
• In relation to CAGR of 2010-2012 sales, companies in 3rd and 4th tier cities are 25% and 24% respectively, which are much higher than those in the 1st and 2nd tier cities, i.e. 8% and 1% respectively
• Among the Top 100 retailers, business turnover of single store of international retailers has been much higher than domestic retailers over the last three years
• Omni-channel retailing is emerged as a new business model in China
• Mobile technology application leads retail revolution