• Top 250 global retailer league table reveals softening grip of US-based retailers
• Discount stores leap up the league table as they aggressively expand into new Markets
• Chinese retailers will have greater presence in the top 250 in the years ahead
• Wal-Mart, which alone accounted for 10% of the Top 250’s combined sales

Dominance of US-based retailers in the global retail league is shrinking. Despite being one of the largest retail markets in the world and home to some of the biggest names in retail, over the last four years the number of US retailers in the Top 250 list of the biggest retailers in the world, along with their share of the retail sales, has diminished.

Four years ago, US retailers accounted for 45.5% of the companies listed in the league table.  In the 2006 study, their share has fallen by 9% to 36.4%.  Over the same period, the US companies’ share of Top 250 retail sales volume dropped to 44.3% from 52.7%.

The fall is due in part to currency appreciation against the US dollar, but also the international reach of UK and other European retailers versus the somewhat insular focus of many US retailers.

As retailers in emerging markets and in Europe ramp up their capabilities and increase their global footprint. The growth is having a direct impact on their share of the most successful retailers in the world and as a result the Deloitte retail league table. Richard Lloyd-Owen head of consumer business at Deloitte said: “This trend, developed over the last few years, suggests retailing is now a truly global industry. To compete successfully retailers will need to learn from global trends.”

The Deloitte report, ‘2006 Global Powers of Retailing’, ranks the biggest 250 retailers and the top 50 fastest growing retailers worldwide and provides a snapshot of the strong performers and the retailers to watch in the future. To earn a spot on this year’s list a company needed retail sales of at least $2.3 billion, up from last year’s $2.2 billion.

Lloyd-Owen said: “The Top 250 are based in 27 different countries. Although the US represents 36% of the top 250 retailers this is down on previous years. A number of countries can now be expected to move in and move up the top 250. China is likely to have more presence on the list in the years ahead as its domestic retailers look to expand through acquisition and organic growth.”

The story in Europe
Today European retailers account for a significant number of the top 250. 24 are based in the UK, 18 in Germany and 12 in France. In the 2006 study European retailers represent half of the Top 10 in the league table, 35% of Top 250 retailers and 40% of Top 250 retail sales volume, up slightly from last year.

Lloyd-Owen added: “Market penetration of European retailers is gathering speed as roll out into new markets increases. The impressive performance of hard discount retailers in Europe has significantly contributed to the growing presence of European players in the Top 250.”

“As European retailers plough into new markets US market share could be shaved in the longer term. It will be interesting to watch what impact Tesco will have on the US presence in the top 250 next year, now it has opened up in Wal-Mart’s back garden.”

Global retail sales
Overall total retail sales for the top 250 biggest retailers in the world increased by 8.9% on the prior year, up from $2.61 trillion in the 2005 study to $2.84 trillion in 2006. The positive growth is largely due to the buoyant global economy in many parts of the world.  

The largest retailers continued to increase their market share, albeit more modestly than in prior years.  The top 10 generated combined sales of $817 billion, or 28.8% of the Top 250’s total sales. Last year, the top 10 accounted for 28.4% of total sales.

Wal-Mart, which alone accounted for 10% of the Top 250’s combined sales, maintains its place as the world’s largest retailer. Wal-Mart’s sales ($285 billion) is more than three times the size of the second-largest retailer, France’s Carrefour.

Ends

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