Welcome!

News Feed Item

Deloitte report: Global retail revenues continue to increase despite economic woes

Revenues from the world's 250 largest retailers reached $4.3 trillion; increased divestments resulted in a shake-up among the world's 10 largest retailers

NEW YORK, Jan. 13, 2014 /PRNewswire/ -- Despite tough economic conditions, revenues for the world's 250 largest retailers reached $4.3 trillion* in the last fiscal year (June 2012 through June 2013).  The average size of the top 250 retailers exceeded $17 billion according to the 2014 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited (DTTL), in conjunction with STORES Media.  For the first time ever, the report also includes a list of the world's top 50 e-retailers** and found that more than three-quarters of them (39 companies) are part of the top 250 retailers globally.

"The global retail industry got off to a difficult start in the last year," said Dr. Ira Kalish, DTTL Chief Global Economist. "However, it is encouraging to see that the world's leading retailers were able to plough on through the difficult period to reap the rewards of increased consumer spend. This has served to provide a much needed boost to global revenues with nearly 80 percent of the top 250 (199 companies) retailers posting an increase in retail revenue. Interestingly, for the first time this year's report shows that some of the top retailers undertook a series of sell-offs in order to remain profitable and ride out the tough trading period," Kalish added.  

Divestments lead to a shake-up of the top 10 global retailers
There was a shake-up among the world's 10 largest retailers last fiscal year, mostly as a result of a series of divestments. As a group, the top 10 grew more slowly than the top 250 the past fiscal year with retail revenue growth of 4.2 percent versus the 4.9 percent growth in the previous fiscal year. While Wal-Mart increased its lead, Carrefour—formerly the world's second-largest retailer—fell to fourth place following back-to-back years of declining sales primarily attributable to the spinoff of the Dia hard discount chain in July 2011. Tesco, which jumped this year to second place, was also impacted by discontinued operations after shuttering its Fresh & Easy operations in the United States.

Emerging markets enjoy strong demand while Europe increases dependence on foreign markets
Retailers based in emerging markets continued to enjoy strong consumer demand in fiscal year 2012. Unlike the headwinds retailers in mature markets faced, emerging market tailwinds continued to fuel aggressive organic growth. Emerging market retailers accounted for more than half (26) of the world's 50 fastest-growing retailers  in fiscal year 2012 including all four Russian top 250 companies, six of seven Africa/Middle East retailers, and six of nine based in Latin America.

"Over recent years, the developing economies have emerged as one of the most promising retail markets," said Vicky Eng, DTTL Global Sector Leader, Retail. "Latin American retailers led the way with 15 percent retail revenue growth followed by retailers in the Africa/Middle East region.  Retailers are successfully adapting their strategies to adequately cater to the growing middle-class consumers in emerging economies where there is strong demand for consumer goods, ranging from cars and electronics to personal care products."

European retailers faced another year of tough trading as the region fell back into recession when austerity measures, put in place to cope with the Eurozone credit crisis, resulted in low growth and high unemployment in many European countries. Retailers based in Germany and particularly the UK underperformed on the top line compared with Europe's top 250 retailers as a whole.  Asia/Pacific retailers (excluding Japan) posted solid gains, but not at the double-digit level seen in the prior two years. Japanese retailers recovered from a devastating fiscal year 2011 but continued to trail the other countries and regions analyzed.

In the United States, growth cooled to 4.3 percent for the top 250 U.S. retailers, down from 6.3 percent in fiscal year 2011. For the North American region as a whole, and Canada in particular, revenue growth got a boost from c-store operator and licensor Alimentation Couche-Tard. As a result of a significant acquisition in 2012, Couche-Tard is now the largest retailer based in Canada. 

Top 250 dominate e-retail ranking
E-commerce accounted for a significant share of total retail revenue for the e-50 in fiscal year 2012 accounting for nearly one-third of company sales, on average (including the pure-play e-retailers). The vast majority of the e-50 (42 companies) in the e-retail ranking are multi-channel retailers; only eight are non-store or web-only retailers. Most e-50 retailers are based in the United States (28) and Europe (17), and only five are emerging-market companies.

E-commerce activity was also analyzed for the top 250 as a whole. Top 250 companies with e-commerce operations generated an average 7.7 percent of their sales online in fiscal year 2012. From a regional perspective, e-commerce accounted for the largest share of revenue for North American retailers and the smallest for European retailers. Online sales grew fastest for Asia/Pacific retailers and slowest for North American retailers.

To download a copy of the 2014 Global Powers of Retailing report, please visit: www.deloitte.com/consumerbusiness

Notes to editors

Top 10 retailers:

Retail

revenue

rank

(FY12)

Name of company

Country of

origin

2012
retail
revenue
(US$m)

1

Wal-Mart Stores, Inc.

U.S.

469,162

2

Tesco PLC

U.K.

101,269

3

Costco Wholesale Corporation

U.S.

99,137

4

Carrefour S.A.

France

98,757

5

The Kroger Co.

U.S.

96,751

6

Schwarz Unternehmens Treuhand KG

Germany

87,236e

7

Metro AG

Germany

85,832

8

The Home Depot, Inc.

U.S.

74,754

9

Aldi Einkauf GmbH & Co. oHG

Germany

73,035e

10

Target Corporation

U.S.

71,960

e = estimate

*Companies were ranked by total retail revenue, not just retail sales. For purposes of this analysis, retail revenue includes royalties and franchising/licensing fees as well as wholesales sales to affiliated/member stores or other "controlled wholesale space" operations (e.g., in-store shops or identity corners).

**E-retailing, as defined in this analysis, includes B2C e-commerce only (i.e., where the company owns the inventory and the revenue reflects e-retail sales). Companies that primarily operate as e-marketplaces are excluded from the e-50 list as their revenues are largely derived from fees and commissions on sales from third-party sellers (consumers or other businesses that own the inventory) rather than directly from the sale of goods.

About the 2014 Global Powers of Retailing Report

The 2014 Global Powers of Retailing report identifies the 250 largest retailers around the world and provides an outlook for the global economy, trends for retailers to consider in the coming months, and an analysis of market capitalization in the retail industry.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

 

SOURCE Deloitte

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of pati...
Tricky charts and visually deceptive graphs often make a case for the impact IT performance has on business. The debate isn't around the obvious; of course, IT performance metrics like website load time influence business metrics such as conversions and revenue. Rather, this presentation will explore various data analysis concepts to understand how, and how not to, assert such correlations. In his session at 20th Cloud Expo, Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Sys...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Stratoscale, the software company developing the next generation data center operating system, exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016.Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere, IT is empowered to take control of their data ce...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
To manage complex web services with lots of calls to the cloud, many businesses have invested in Application Performance Management (APM) and Network Performance Management (NPM) tools. Together APM and NPM tools are essential aids in improving a business's infrastructure required to support an effective web experience... but they are missing a critical component - Internet visibility.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.