Analysis
Ukraine retailer makes it to the top 250 retailers for the first time
Ukraine retailer made it to the Top 250 ranking as the ninth fastest-growing retailer, according to the Global Powers of Retailing 2022, a new report from Deloitte.
Despite the general uncertainty and anxiety caused by the COVID-19 pandemic, it has also significantly accelerated the development of the retail sector, stimulating the online sales of consumer goods.
“Despite the economic challenges posed by the pandemic, the retail sector has shown an upward trend, with innovation in digital adding to the momentum. High competition and consumer needs stimulate the market to grow and expand. 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.
Ukraine retailer ATB-Market joined the Top 250 ranking as one of the fastest-growing retailers for the first time,” said Oleksandr Yampolskyi, Director, Retail and Wholesale Group Leader at Deloitte Ukraine.
Retail sector leaders
The Top 250 global retailers generated aggregated revenue of US$5.11 trillion in fiscal year 2020, representing composite growth of 5.2%.
The fast-moving consumer goods sector (products sold quickly and at relatively low cost) continue to be the largest product sector, representing 66.4% of the retail revenue of the top 250 companies. Consumer goods (such as household goods, appliances, sports goods) and leisure goods follow with 21% share of the top 250 revenue.
Walmart continued its leadership of the world’s Top 250 global retailers, followed by Amazon and Costco as the Top 3 retailers.
| # | Company | Country | FY2020 retail revenue, US$M | FY2020 retail revenue growth, % |
|---|---|---|---|---|
| 1 | Walmart Inc. | United States | 559,151 | 6,7 |
| 2 | Amazon.com, Inc. | United States | 213,573 | 34,8 |
| 3 | Costco Wholesale Corporation | United States | 166,761 | 9,2 |
| 4 | Schwarz Group | Germany | 144,254 | 10 |
| 5 | The Home Depot,Inc. | United States | 132,110 | 19,9 |
| 6 | The Kroger Co. | United States | 131,620 | 8,3 |
| 7 | Walgreens Boots Alliance, Inc. | United States | 117,705 | 1,5 |
| 8 | Aldi Einkauf GmbH & Co. oHG and Aldi International Services GmbH & Co. oHG | Germany | 117,047 | 8,1 |
| 9 | JD.com, Inc | China | 94,423 | 27,6 |
| 10 | Target Corporation | United States | 92,400 | 19,8 |
Europe has the highest number of Top 250 retailers, with 90 companies based in the region. Despite having the largest number of companies, Europe contributed 32.7% to the total Top 250 retail revenue. As a comparison, North America, which is presented in the rating by 78 companies, accounts for a 48.4% share of the total Top 250 retail revenues.
Ukraine retailer made it to the top 250 largest retailers for the first time
Retail chain ATB-Market entered the Top 250 at position 230. Its year-over-year retail revenue grew by 18.1%, and its FY2015-FY2020 CAGR was 26.3%, making it the ninth fastest-growing retailer in the Top 250.
At the end of FY2020 the company operated more than 1,200 stores across Ukraine, adding 127 new discount stores and reconstructing 59 existing stores during the pandemic.
The retailer’s market share of Ukraine’s food retail sector is about 25-30%. ATB-Market continues to expand the number of its discount stores across the country and to invest in the development of its private labels, which currently contribute 25% of its total turnover.
“Our development strategy is based on the interests and needs of our clients, who are considered a business partner of ATB. We use a systematic approach to addressing the issues that are important to more than four million of our customers, such as ensuring comfort, convenience, guaranteed quality, and affordable price.
The opening of new stores, especially in small towns and rural communities, combined with the modernization of existing retail facilities is based on our long-term strategy. It envisages growth of quantitative indicators with the simultaneous implementation of innovative solutions, development of additional customer services, formation of new purchasing trends, as well as work on recruitment, training and motivation of employees in a constantly changing environment,” said Borys Markov, CEO of ATB Corporation.
Sustainability in retail
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 the retailer’s business strategy. This does not come as a surprise as 55% of consumers stated they prefer a sustainable product or service, and 32% of consumers are ready to pay more for such products or services. The largest category of sustainable purchases by respondents was food and beverages at 42%, followed by everyday household goods at 25%.
Methodology
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. 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.
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