Global Powers of Retailing 2020

• US$4.74 trillion in revenues generated by Top 250 global retailers

• The Top 10 retailers maintained their focus on global business operations

The Top 250 global retailers generated aggregated revenues of US$4.74 trillion in fiscal year 2018, representing composite growth of 4.1 percent, according to Global Powers of Retailing 2020, a new report from Deloitte Global.

“The outlook for the global economy and the retail industry in 2020 is uncertain,” says Dr. Ira Kalish, Deloitte Global Chief Economist. “Overall economic growth is likely to be subdued but positive, with lower growth in consumer spending and inflation in most countries remaining low.”

Global Powers of Retailing Top 250
The world’s Top 10 retailers contributed 32.2 percent share to the Top 250’s total retail revenue in FY2018, up from the 31.6 percent share in the previous year. Growth of the Top 10 outpaced that for the Top 250 retailers, at 6.3 percent and 4.1 percent respectively. The composite net profit margin for the Top 10 retailers was 0.5 percentage points higher than the previous year, despite the pressure on retailers from intense competition, rising labor costs, price wars, and investment in e-commerce capabilities.

The minimum revenue for a company to enter the Top 250 rankings is US$3.9 billion, up from US$3.7 billion in the previous year, with an average company size of US$19.0 billion.

With the largest number of companies (136) in the Top 250 list, the fast-moving consumer goods (FMCG) ¹ product sector generated 66.5 percent of the retail revenue in FY2018. Retailers in this sector have the largest average retail revenue (US$23.2 billion in FY2018), however this is a low-margin sector with the lowest net profit margin of all the sectors (2.0 percent in FY2018).

Europe has the highest number of Top 250 retailers, with 88 companies based in the region (34.4 percent), contributing 34.4 percent to the total retail revenue in FY2018. The US has the largest companies with an average size of US$27.6 billion, which is much higher than the average Top 250 size of US$19.0 billion.

“As we look at the performance of the Top 250 retailers over a five-year period, although individual companies have experienced significant changes in their fortunes over this period, at the aggregate level the Top 250 has exhibited remarkable stability,” says Vicky Eng, Deloitte Global Retail, Wholesale & Distribution Sector leader. “Year-over-year retail revenue growth, net profit margin, and internationalization have all remained in a relatively narrow range.”

"Although there is uncertainty about prospects for the regional economy, with 2019 seeing China's slowest GDP growth for 10 years at 6.1 percent, disruption to supply chains from trade uncertainty, and the new coronavirus further clouding prospects for 2020, China's journey to being one of the world's retail powerhouses continues," says Zhang Tian Bing, Deloitte AP Consumer and Retail Sector leader. "In terms of market entries, we have seen the Walgreens Boots Alliance complete its acquisition of a majority stake in Sinopharm Holding GuoDa Drugstores, COSTCO and Aldi accelerate its entry into the market. In terms of the strength of domestic Chinese players, China now has two of the five fastest growing retailers in the world – Vipshop Holdings and JD.com – with JD already the world's 15th largest retailer overall. What's more important, China is also leading the charge in innovative retail formats that are centered around consumer moments and integrated online and offline capabilities.""

¹Fast-moving consumer goods: Products that are sold quickly and at relatively low cost.

About Global Powers of Retailing
The report identifies the 250 largest retailers around the world based on publicly available data for FY2018 (fiscal years ended through 30 June 2019), and analyzes their performance across geographies and product sectors. It also provides a global economic outlook, looks at the 50 fastest-growing retailers, and highlights new entrants to the Top 250.

Contact Us
Zhang Tianbing
Managing Partner
Deloitte AP Consumer Products and Retail Sectors
Email: tbzhang@deloitte.com.cn