Woolworths is the first Australian company to break into the top 25 global retailers list, according to the Deloitte 2008 Global Powers of Retailing report launched today.

The report, which identifies the 250 largest retailers globally for the fiscal year 2006 (encompasses fiscal years ended through June 2007), notes that Woolworths jumped from 29th place to 25th place, while its competitor, Coles Group, remained relatively steady at 31st place (down one place). 

Both Australian retail giants remained in third and fourth places respectively in the Asia-Pacific top ten.

Woolworths had compound annual sales rates for the past five years at 11.8 per cent and Coles Group at 7.5 per cent. 

Deloitte Australia’s Consumer Business Leader, Andrew Griffiths, said that both Woolworths and Coles Group were punching above their weight given the size of the Australian retail market.

“Both Woolworths and Coles Group have been iconic brands for many decades having diversified with their retail offer from supermarkets to liquor, general merchandise and petrol,”  Mr Griffiths said.

The report also found that the Australian companies in the top 250 have, on average, the highest market capitalisation to assets ratio (also known as the Q ratio).

In this category, Woolworths has risen from 13th place to 9th place and Coles Group leaped from 41st place to 20th place.

“The financial markets are valuing highly these Australian companies’ non-tangible assets such as brand equity, differentiation, innovation, first mover advantage, market dominance, customer loyalty, execution, and customer experience,” Mr Griffiths said.

“The Coles Group improvement is not surprising as it attracted so much takeover attention from Wesfarmers last year.”

The West Australian retailer jumped an impressive twenty positions to 176th place with its compound annual sales rate for the past five years at 10 per cent.

“Wesfarmers position in future top 250 is expected to improve following its successful takeover of the Coles Group in November 2007.  It will be interesting to see how it will revamp the Coles Group brands over the next few years,” Mr Griffiths said.

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Read the full report: 2008 Global powers of retailing