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.
“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.
David Lung, National Consumer Business Industry Managing Partner, Deloitte China, said three companies in Greater China, including Beijing Jingdong Century Trading Co., Ltd., Chongqing Department Store Co and Far Easter Department Stores Ltd. made their top 250 debut this year.
However, growth decelerated considerably in the China marketplace in 2012, partly due to the decline in demand for imported goods from Europe. Even within China, the economy only grew at a rate of 7.8 percent in 2012, the slowest since 1999.
"Moving ahead, as China has evolved to become a more middle-income country. It will be more difficult to sustain high growth. The government is aware of the need to transform from investment-led growth toward consumer led-growth. Policies which aim at boosting consumer spending will have a visible impact on the retail environment in China," he said.
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 analysed.
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 analysed 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.