global powers of retailing 2019

Perspectives

Global Powers of Retailing 2019

Executive Summary

The global economy is currently at a turning point. Until early 2018, the global economy displayed strong growth. With inflation accelerating in major markets, governments making shifts in monetary and fiscal policies, and most of the emerging markets experiencing significant currency depreciation, the global economy will slow down in the near future. For retailers, this change will mean slower consumer spending growth, higher consumer prices, and disrupted global supply chains. Deloitte’s Global Powers of Retailing 2019 reviews the global economic scenario and its impact on the retailing industry.

The report identifies the 250 largest retailers around the world based on publicly available data for FY2017 (fiscal years ended through June 2018), and analyses 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.

Key findings from the report:
  • The aggregate retail revenue for the Global Powers of Retailing Top 250 companies was US$4.53 trillion in FY2017, with an average size of US$18.1 billion per company.
  • Retail revenue increased for 83% of the world’s 250 largest retailers (208 companies).
  • Europe has the highest number of Top 250 retailers, with 87 companies based in the region (34.8%) and its share of Top 250 revenue was 33.8%.
  • The world’s Top 10 retailers are more globally focused, with operations on average in 13 countries versus 10 for the overall Top 250. European retailers remain the most globally active as they search for growth outside their mature home markets.
  • FMCG is the largest product sector. Its 138 companies (55.2% of companies) generated 66.2% of the retail revenue in FY2017.
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Global Powers of Retailing 2018: Transformative change, reinvigorated commerce

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 analyses 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.

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 2017: The art and science of customers

The 20th annual Global Powers of Retailing identifies the 250 largest retailers around the world based on publicly available data and analyses their performance across geographies, sectors, and channels. In addition, the report focuses on the theme of "The art and science of customers," and considers the impact that living in the customer-driven economy is having on the shopping experience and retail industry business strategies.

Global Powers of Retailing 2016: Navigating the New Digital Divide

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 analyses 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 behaviours 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.

Global Powers of Retailing 2015: Embracing Innovation

The 18th annual Global Powers of Retailing identifies the 250 largest retailers around the world, and analyses 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. In addition, the report considers strategies retailers are taking to cope with disruptive change in the industry, provides an overview of the global economy and how it will impact the retail sector, and discusses "Q Ratio" which is a way of measuring non-tangible business assets.

Global Powers of Retailing 2014: Retail Beyond begins

The 17th annual Global Powers of Retailing report identifies the 250 largest retailers, examines trends for retailers to consider as they plan their growth strategies, provides a global economic outlook, and discusses "Q" ratio. This edition also includes a section on “Retail Beyond,” which takes a provocative look at how existing technologies could conceivably converge and further transform the already complex relationship between retailers and consumers. In addition, the 2014 report marks the first appearance of the Top 50 E-retailers list.

Global Powers of Retailing 2013: Retail beyond

The 16th annual Global Powers of Retailing report identifies the 250 largest retailers, provides a global economic outlook, and discusses "Q" ratio. It also includes a section on "The Future of Retail," which examines the industry impact as consumers seek an integrated shopping experience across channels – and in some cases across geographies – causing some retailers to be put to the test.

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