Global Powers of Retailing 2022

Deloitte Global retail report finds the revenue of the Top 250 retailers grew by 5.2% in FY2020^*

• E-commerce a key driver of growth during the COVID-19 pandemic
• Chinese retailer entered the Top 10 list for the first time
• Retailers becoming more focused on sustainability
   

The Top 250 global retailers generated aggregated revenue of US$5.11 trillion in fiscal year 2020,^* representing composite growth of 5.2%, according to Global Powers of Retailing 2022, a new report from Deloitte. The report identifies the 250 largest retailers around the world based on publicly available data and analyzes their performance across geographies and product sectors. It also looks at the 50 fastest growing retailers, highlights new entrants to the Top 250, and provides a global economic outlook.

“While we entered 2022 with some very serious headwinds—inflation, labor shortages, supply chain disruption, a resurging virus—retailers now have reason to be optimistic,” says Deloitte Global Chief Economist Dr Ira Kalish. “Major economies will most likely grow this year, consumers are expected to have more cash, and trade and cross-border investment will continue apace.”

Global Powers of Retailing Top 250

The minimum revenue for a company to enter the Top 250 rankings is US$4.1 billion, up from US$4.0 billion in the previous year, with the average company size increasing from US$19.4 billion to US$20.4 billion.

The largest product sector continues to be fast-moving consumer goods (products sold quickly and at relatively low cost), representing 66.4% of the retail revenue of the top 250 companies. Hardlines (such as appliances) and leisure goods follow with 21.0% share of top 250 revenue and recorded the highest year-on-year retail revenue growth rate of 14.5%.

Europe has the highest number of Top 250 retailers, with 90 companies based in the region, North America has the highest share of Top 250 retail revenue at 48.4%.

Sustainability in retail

With 55% of consumers stating they had purchased a sustainable product or service, this year’s report also takes a look at how retailers globally are tackling sustainable and responsible growth. Most retailers in the Top 250 have outlined their environmental, social, and governance (ESG) commitments and are publishing ESG-related metrics. The sustainability credentials of their products, as well as their overall brand, are a core part of retailer’s business strategy responding to millennial and Generation Z customers’ concerns.

Top 10 retailers

The world’s Top 10 retailers hold a 34.6% share of the total retail revenue of the Top 250, compared to 32.7% in the previous year. Retail revenue growth by the Top 10 in FY2020 jumped by 8 percentage points from the previous year, to 12.4%.

The Top 10 list continues to be dominated by companies headquartered in the United States (7). FY2020 also saw a Chinese retailer enter the Top 10 list for the first time.

"E-commerce continues to be a driver for retailers, with consumers still opting to shop from home due to the pandemic. The importance of online capabilities was a contributing factor to this year's first-ever Chinese top 10 retailer, which was also listed as one of the year's 10 fastest-growing retailers," says Tianbing Zhang, Deloitte APAC Consumer Product and Retail Sector Leader. "Overall, the 14 Chinese retailers making the Top 250 achieved higher YoY growth than retailers in any other major country on the list. This impressive result is backed by strong revenue growth from online specialists with solid e-commerce capabilities, which is now a must-have for retailers in any product sector."

“Despite a year of economic fits and starts, retail appears to be on an upward trajectory, with innovation in digital and sustainability as exciting bright spots in the face of the disruption and uncertainty,” says Deloitte Global Retail, Wholesale & Distribution Sector Leader Evan Sheehan. “Unfortunately, churn is likely to stick with us for a while, so anticipating customer needs and expectations remains crucial. The retailers that can get consumers what they want, where they want it, and when they want it will be the ones that continue to win, no matter where they operate.”

^*Financial years ending within the 12 months from 1 July 2020 to 30 June 2021