Headline Verdana Bold - Global Powers of Retailing 2019 Highlights - Deloitte

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Headline Verdana Bold - Global Powers of Retailing 2019 Highlights - Deloitte
Headline Verdana Bold
Global Powers of Retailing 2019
Highlights
Headline Verdana Bold - Global Powers of Retailing 2019 Highlights - Deloitte
Top 250 quick statistics
FY2017

 3.3%                                                                 US$4.53 trillion                                                                     2.3%
 FY2012-2017 Retail                                                    Aggregate retail                                                                    Composite net
 revenue CAGR                                                          revenue of Top 250                                                                  profit margin

                           US$18.1 billion
                             Average size of Top 250
                                 (retail revenue)
                                                                                                                                                           5.7%                 5.0%
                                                                                                                                                      Composite YoY retail      Composite
                                                                                                                                                        revenue growth          return on
                             US$3.7 billion                                                                                                                                       assets
                            Minimum retail revenue
                         required to be among Top 250
                                                                                                                                                             10                65.6%
                                                                                                                                                       Average number
                                                                                                                                                                             Top 250 retailers
                                      23.6%                                                                                                           of countries where
                                                                                                                                                       companies have          with foreign
                      Share of Top 250 aggregate retail                                                                                                                         operations
                                                                                                                                                       retail operations
                       revenue from foreign operations

 Source: Deloitte Touche Tohmatsu Limited. Global Powers of Retailing 2019. Analysis of financial performance and operations for fiscal years ended
 through June 2018 using company annual reports, Supermarket News, Forbes America’s largest private companies and other public sources.

© 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                                                                                                2
Top 10 retailers
    Wal-Mart continues its stint as the world’s largest retailer
Top 250
 rank

 #1               Wal-Mart Stores, Inc.                                                          US     $ 500.3

 #2               Costco Wholesale Corporation                                                   US     $ 129.0                    Key highlights
 #3               The Kroger Co.                                                                 US     $ 118.9
                                                                                                                                    The top three largest retailers maintained their
                                                                                                                                     positions on the leader board
 #4               Amazon.com, Inc.                                                               US     $ 118.5               +2
                                                                                                                                    A combination of organic growth, acquisitions,
 #5               Schwarz Group                                                               Germany   $ 111.7               -1     and exchange rate volatility shuffled the rest of
                                                                                                                                     the Top 10
 #6               The Home Depot, Inc.                                                           US     $ 100.9               +1
                                                                                                                                    Amazon, Home Depot, CVS Health, and Tesco
                                                                                                                                     move up the leader board
 #7               Walgreens Boots Alliance, Inc.                                                 US     $ 99.1                -2
                                                                                                                                    The Top 10 continued to compose a bigger
 #8               Aldi Einkauf GmbH & Co. oHG
                                                                                              Germany   $ 98.3 e                     share of industry sales, accounting for 31.6% of
                                                                                                                                     the overall Top 250’s retail revenue (compared
                                                                                                 US     $ 79.4
 #9               CVS Health Corporation                                                                                      +1     to 30.7% last year)

 #10              Tesco PLC                                                                      UK     $ 73.9                +1

                       Country of origin                      FY2017 Retail revenue (US$ billions)           Change in rank        e: estimate

    © 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                                                                               3
Geographic breakdown
Percentage share of Top 250 revenue by region and by top countries

                                            North                    Latin    Europe      Africa/      Asia
                                           America                  America             Middle East   Pacific

                                             48.0%                   1.6%     33.8%       1.3%        15.4%

                                                                                                                Mainland
                                                                                                                China/HK
                                                                                                                  3.9%
                                 US
                               46.0%                                           France                             Japan
                                                                                6.4%                              6.9%

                                                                              Germany                           Other Asia
                                                                               10.4%                              Pacific
                                                                                                                  4.5%

                                                                                UK
                                                                               5.1%

                                                                               Other
                                                                              Europe
                                                                              11.9%

© 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                            4
Product sector breakdown
  Percentage share of Top 250 revenue by primary product sector

                                                                                                                                              TOP 250
                                                                                                                                            Companies by sector

                         Apparel and                                Fast-moving    Hardlines and
                                                                  consumer goods   leisure goods               Diversified
                                                                                                                                            40                50
                         accessories
                                                                      (FMCG)
                                                                                                                                           138                22
Share of
revenue                   9.8%                                        66.2%        18.0%                       6.0%

                       Key highlights

                       Apparel and accessories is the most profitable product            The hardlines and leisure goods sector continued to lead the way with
                        sector, with a composite net profit margin of 6.0% and a           the highest retail revenue growth rate of 10.1% and a solid retail
                        return on assets composite of 7.8%.                                revenue CAGR of 6.8%.
                       The fast-moving consumer goods (FMCG) sector is the key           The diversified group persistently experiences slow growth – its
                        driver of the Top 250 metrics. The 138 companies generated         composite revenue decrease of -0.3% represented an actual
                        66.2% of the retail revenue and eight of the Top 10                improvement from the -1.3% achieved in FY2016.
                           companies belong to the FCMG sector.

  © 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                                                                5
Top 10 fastest-growing retailers
   FY2012-FY2017 CAGR
                                                                                      Top
                                                                                      250
Growth                                                                                rank
 rank                                                                                                                                          CAGR

 #1              Albertsons Companies, Inc.                                            15               US                 $ 59.9               74.4%
                                                                                                                                                            Key highlights
 #2              Vipshop Holdings Limited                                              92              China               $ 10.9               73.8%
                                                                                                                                                             Albertsons replaced Vipshop at the top
 #3              JD.com, Inc                                                           20              China               $ 49.1               52.4%         of the rankings.

                                                                                                                                                             The Fastest 50 retailers grew on
 #4              Wayfair Inc                                                          205               US                 $ 4.7                51.0%
                                                                                                                                                               average, 5 times faster than the Top
                                                                                                                                                               250, with a 17.1% CAGR. Contributed
 #5              A101 Yeni Mağazacılık A.S                                            237             Turkey               $ 3.9                46.4%
                                                                                                                                                               by new store openings, M&A activity
                                                                                                                                                               and growing e-commerce sales.
 #6              Reliance Industries Limited/Reliance Retail                           94              India           $ 10.6 e                 44.8%
                                                                                                                                                             34 of the fastest 50 companies were
 #7              Action Nederland BV                                                  242        Netherlands           $ 3.8 **                 31.4%         also among the 50 fastest-growing
                                                                                                                                                              retailers in FY2016.
 #8              Zalando SE                                                           191             Germany              $ 5.0                31.1%
                                                                                                                                                             Three of the top four retailers on this
                                                                                                                                                              list are exclusively focused on e-
 #9              Hudson's Bay Company                                                  91             Canada               $ 11.1               28.6%
                                                                                                                                                              commerce: Chinese e-tailers, Vipshop

 #10             Lenta Group                                                          157             Russia               $ 6.2                27.1%         and JD.com, and Wayfair.

       Country of origin               FY2017 Retail revenue (US$ billions)   CAGR: for FY2012-2017          e: estimate           **   Revenue includes wholesale and retail sales

   © 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                                                                                              6
New entrants to the Top 250
16 retailers joined or re-entered the ranks of the Top 250
                                                                     Top
                                                                     250
                                                                     rank                                                        FY2017 Retail
                                                                                                                                revenue growth

                                                                      26                Germany   Cash & Carry/Warehouse Club       1.6%
   Metro AG

   Ceconomy AG                                                        40                Germany       Electronics Specialty         1.3%

   Wumart Holdings, Inc.                                             187                 China            Supermarket               10.5%

   Wayfair Inc.                                                      205                  US                Non-Store               39.7%

   RaiaDrogasil S.A.                                                 223                 Brazil      Drug Store/Pharmacy            23.1%

   B&M European Value Retail S.A.                                    229                  UK            Discount Store              24.6%

   JD Sports Fashion Plc                                             234                  UK             Other Specialty            37.2%

   A101 Yeni Mağazacılık A.S                                         237                Turkey            Discount Store            32.7%

   NORMA Unternehmens Stiftung                                       239                Germany           Discount Store            4.4%

   Wangfujing Group Co., Ltd.                                        241                 China          Department Store            46.6%

                                                                    Country of origin             Dominant operational format

© 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                                                7
New entrants to the Top 250
16 retailers joined or re-entered the ranks of the Top 250
                                                                     Top
                                                                     250
                                                                     rank                                                            FY2017 Retail
                                                                                                                                    revenue growth

                                                                     242                Netherlands   Discount Department Store           27.8%
   Action Nederland BV

   Lagardère Travel Retail SAS                                       243                  France             Other Specialty              8.6%

Daiso Industries Co., Ltd. (prev. Daiso Sangyo)                      245                  Japan       Discount Department Store           8.3%

   American Eagle Outfitters, Inc.                                   246                    US        Apparel/Footwear Specialty          5.1%

   Magazine Luiza S.A.                                               249                  Brazil             Other Specialty              26.1%

   The Golub Corporation                                             250                    US                 Supermarket                5.7%

                                                                    Country of origin                 Dominant operational format

© 2019. For information, contact Deloitte Touche Tohmatsu Limited                                                                                    8
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© 2019. For information, contact Deloitte Touche Tohmatsu Limited.
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