ME’s Lulu Group international jumps 14 places from 2013 among world’s top 250 retailers
-Deloitte’s 18th annual Global Powers of Retailing report explores innovative trends in the sector
- Deloitte: US$4.4 trillion in fiscal year 2013 revenues of top 250 global retailers
27 January, 2015 - The top 250 global retailers generated revenue of US$4.4 trillion in fiscal year 2013, each with an average size of more than US$17.4 billion, according to the 2015 Global Powers of Retailing, Embracing Innovation report from Deloitte in conjunction with STORES Media. This year’s report explores innovative trends in retail, forecasts for 2015 as well as the strategies retailers are utilizing to address the disruptive changes impacting the sector.
The 250 largest retailers around the world are analyzed based on their financial performance, geographic region, product sector and e-commerce activity. Revenue growth for the top 250 retailers, which began declining in 2011, continued to slow in fiscal year 2013. According to the report, sales-weighted, currency-adjusted retail revenue was 4.1 percent for the top 250, following a 4.9 percent gain in fiscal year 2012. While growth continued to decline, nearly 80 percent of the top 250 (199 companies) posted an increase in retail revenue in fiscal year 2013.
“The sluggish global economy in 2014 left many consumers financially constrained and retail sales under pressure. Thus, the prosperity of the global retail sector in 2015 will very much depend on the economic stability of several of the largest economies. Despite the recent fall in oil prices, there is little evidence at this stage that it will negatively impact consumer spending in the Middle East. Although European grocers might be slowing expansion, no such problems are affecting those in the Middle East,” said Herve Ballantyne, partner and Consumer Business leader at Deloitte Middle East.
“The 2015 Global Powers of Retailing report ranks Emke Group/Lulu Group as one of the best examples of Middle East retailers faring well globally. In 2014 alone, the retailer jumped an impressive 14 places from last year’s ranking which showcases the company’s growth in the region”, said Alfred Strolla, regional managing partner for Oman, and Yemen at Deloitte Middle East.
Top retail trends in 2015
- Travel retailing –International tourism is set to continue to rise above expectations despite continuing global geopolitical and economic challenges. The expanding middle classes of emerging markets are traveling to the world’s capitals and boosting retail sales. In 2015, retailers are expected to increasingly cater to high-spending travelers, especially emerging market tourists to drive growth.
- Mobile retailing – Mobile retailing is expected to continue to grow aggressively. Retailers will need to respond by offering free in-store Wi-Fi and mobile-friendly retail websites optimized for different kinds of personal devices. Privacy and security will become increasingly important as trust, transparency and protecting customer information will be critical in retaining loyalty as mobile retailing becomes the norm.
- Faster retailing - Speed continues to remain an important trend in retail. This includes: “fast fashion” (getting runway styles to the stores as soon as possible); limited-time-only products and flash sales to drive urgency and immediate purchase; pop-up establishments to quickly get products and services to market and build buzz; and self-service check-out and kiosks to reduce or eliminate waiting. In 2015, retailing is forecast to get even faster to meet consumers’ desires. Millennials will be driving much of this as they are the largest generation, with a lot of spending power, and carry a lot of influence. They prefer fast response and immediate gratification, and retailers will cater to that.
- Experience retailing - Retailing is no longer just about the product, but the experience. Retailers will continue to explore innovative ways to enhance the buying experience for their customers through social media campaigns, festivals, fashion shows and interactive displays.
- Innovative retailing- The retail industry will continue to be disrupted by new technologies and innovative competition. More retailers are likely to adopt innovative practices, embrace technology and use it in creative ways.
“The retail sector is going through a significant period of change. The speed of innovation and the disruption being felt across the industry will continue, as the demands of customers continue to increase. To succeed in this environment, retailers will need to respond quickly to threats and opportunities ensuring they are quick to implement innovations of their own. This will require a connecting strategy, capabilities, and specific initiatives, guided by the insights provided by market data,” added Ballantyne.
To view the whole report, click here: http://deloi.tt/15iX09a
 The analysis is based on publicly available data for fiscal year 2013 (encompassing companies’ fiscal years ended through June 2014).
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About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is the first Arab professional services firm established in the Middle East region with uninterrupted presence since 1926.
Deloitte is among the region’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with around 3,000 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has received numerous awards in the last few years which include Best Employer in the Middle East, best consulting firm, and the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW).