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Global powers of retailing 2014
Retail beyond begins
The 17th annual Global powers of retailing report identifies the 250 largest retailers around the world for the past fiscal year- but it is much more than a list. It also examines trends for retailers to consider as they plan their growth strategies; provides a global economic outlook for retail; and discusses "Q" ratio - a way of drawing inferences about the future performance of retailers based on current financial information.
This year’s report includes two exciting features. Its section on “Retail Beyond” takes a provocative look at how existing technologies could conceivably converge and further transform the already complex relationship between retailers and consumers. And, for the first time ever, the report includes a list and analysis of the world’s top 50 e-retailers.
Global powers of retailing 2014: A TMT perspective
Grasping the €7bn online opportunity
Deloitte’s 2014 Global Powers of Retailing report reinforced what many in the retail sector already know; growth in the Asian and African and South American markets with retailers needing to be more innovative in the more competitive European and North American sectors. Taking the numbers apart, it is evident there is an opportunity for Ireland to become an e-retail hub for Europe. While online sales account for circa 11.7% of retail sales in the US, the comparative figure for Europe is less than half that at 5.2%.
Commenting on the report, Richard Howard, partner in Deloitte’s TMT industry group highlighted the potential opportunities available to Ireland
“Even if we were to match US retailers online percentage sales, we would see an additional level of online sales in Europe of over $7bn this year alone. Having already established the country as the European capital for social media and software, we have the infrastructure in both IT and languages to serve international retailers looking to exploit the European online opportunities.
More importantly the growth rate for online sales is expected to be 25% for the world’s top retailers over the coming year, therefore that $7bn opportunity is a fast growing one. Apart from the top line growth, the benefits of online retail include the ability to centralise services and reduce inventory and infrastructure costs, therefore improving margins.
“Along with our existing skill sets, the harmonisation of VAT for online sales provides an opportunity for Ireland to build on its existing capabilities in serving the EMEA market ”.