Deloitte Global report finds the average company size of Top 250 retailers has increased to US$19.0 billion has been saved
Deloitte Global report finds the average company size of Top 250 retailers has increased to US$19.0 billion
- US$4.74 trillion in revenues generated by Top 250 global retailers
- The Top 10 retailers maintained their focus on global business operations
Singapore, 11 February 2020 – 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 internationalisation have all remained in a relatively narrow range.”
Southeast Asia highlights
This year’s ranking revealed four Southeast Asian players – two from Indonesia, and one each from Philippines and Thailand – amongst the Top 50 fastest-growing retailers. All four players belonged to the Convenience/Forecourt Store and Hypermarket/Supercentre/Superstore categories.
“Enticing consumers with greater variety and availability of products, as well as better service, Modern Trade channels such as convenience store chains and supermarkets are increasingly gaining traction across the Southeast Asia region,” comments Pua Wee Meng, Deloitte Southeast Asia’s Consumer Industry Leader.
“In addition, we are also witnessing an evolution in the digital payments sector that will set the platform for the exponential growth of in-store payments in these store formats,” adds Wee Meng. “With mobile payments service providers pushing ahead with aggressive expansion plans, the use of non-bank digital payment methods are likely to leapfrog conventional card payments in many emerging markets across the region.”
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.
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