global powers of retailing 2018

Perspectives

Global Powers of Retailing 2018

Transformative change, reinvigorated commerce

It is a transformative time in retail. The shopper is clearly in the driver’s seat, enabled by technology to remain constantly connected and more empowered than ever before to drive changes in shopping behavior.

This year's report focuses on the theme of “Transformative change, reinvigorated commerce,” which looks at the latest retail trends and the future of retailing through the lens of young consumers. To mark this 21st edition, there will also be a retrospective which looks at how the Top 250 has changed over the last 15 years.

Global Powers of Retailing Top 250

The 21st annual Global Powers of Retailing identifies the 250 largest retailers around the world based on publicly available data for FY2016 (fiscal years ended through June 2017), and analyzes their performance across geographies and product sectors. It also provides a global economic outlook and looks at the 50 fastest-growing retailers and new entrants to the Top 250.

The top five largest retailers maintained their positions on the leader board. A combination of organic growth, acquisitions, and exchange rate volatility shuffled the rest of the Top 10—which now accounts for 30.7 percent of the overall Top 250’s retail revenue (compared to 30.4 percent last year).

Retailers of fast-moving consumer goods (FMCG) are by far, the largest companies (average retail revenue of nearly US$21.7 billion) as well as the most numerous (135 retailers accounting for 54 percent of all Top 250 companies and two-thirds of Top 250 revenue).

Transformative change, reinvigorated commerce

The rules of retailing are being rewritten in this time of transformative change. Innovation, collaboration, consolidation, integration, and automation will likely be required to reinvigorate commerce, profoundly impacting the way retailers do business now, and in the future. Across the retail industry, disruption of traditional business models has given way to unprecedented and transformative change—change required online and offline to better serve more demanding shoppers and redefining customer experience.

The four trends identified in the report are:

  • Building top-notch digital capabilities
  • Combining bricks and clicks makes up for lost time
  • Creating unique and compelling in-store experiences
  • Reinventing retail with the latest technologies

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The 19th annual Global Powers of Retailing identifies the 250 largest retailers around the world based on publicly available data for fiscal 2014 (encompassing companies' fiscal years ended through June 2015), and analyzes their performance based on geographic region, product sector, e-commerce activity, and other factors. It also provides a look at the world's 50 biggest e-retailers.

Global Powers of Retailing 2016: Navigating the New Digital Divide is much more than a list, however. Ira Kalish, Deloitte's Chief Global Economist, provides an overview of the global economy and how it will impact the retail sector. There is a section devoted to the "Q Ratio," which is a way of measuring non-tangible business assets such as brand equity and customer loyalty.

In addition, the report considers the impact technology has on in-store shopping. Recent studies by Deloitte show that we are rapidly heading toward a day where nearly all shoppers will be connected to the Internet nearly all of the time. Digital behaviors and expectations of consumers are evolving faster than retailers are delivering on those expectations, creating a "digital divide." Deloitte has identified three important trends in this area:

  • No single path toward digital adoption. While all markets are moving in the same direction, some are taking somewhat different routes to get there. Some emerging markets, for example, are entirely skipping adoption stages previously experienced by established markets.
  • One digital "size" does not fit all customers. Digital behavior varies depending on personal factors, for example age, income, and product type being sought.
  • Consumers are demanding better digital tools. Digital tools and channels can both extend a retailer's reach and increase revenue, but customers are currently feeling unsatisfied and underserved.

Download the full report to learn more.

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