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Revenues of the Largest Retailers Increased Despite the Global Downturn

"Today's consumers are increasingly connected to both physical and digital space and are able to interact with retailers through multiple channels simultaneously,"

- Martin Tesař,
Partner in Charge in the Audit function of Deloitte Czech Republic

Prague, 15 January 2013 – The revenues of the world's 250 largest retail chains amounted to $4 trillion in the fiscal year 2011 (ie at the end of June 2012). The fastest growth of retail revenues was reported by companies based in emerging markets in Africa, the Middle East, Latin America and Asia Pacific (excluding Japan), according to the new Global Powers of Retailing report published by Deloitte and STORES Media.

Compared with 2011, the list of the top 10 largest retailers remained virtually unchanged. The American retailer Wal-Mart, which accounted for more than 10% of the total revenues of the 250 largest retailers, remains number one on the market. The purchase of South Africa's Massmart in June 2011 has been Wal-Mart's biggest deal in over a decade. Second place is shared by the French retailer Carrefour and the British retail chain Tesco. The German retail chain Metro retains fourth place and the American Kroger ranks fifth (see the table below).

"Today's consumers are increasingly connected to both physical and digital space and are able to interact with retailers through multiple channels simultaneously. To stay competitive in this ever-evolving competitive landscape, it is imperative for retailers to deliver a seamless customer experience across all channels and provide the right services and products at the right time," said Martin Tesař, Partner in Charge in the Audit function of Deloitte Czech Republic. "Traditional retailers must find opportunities to seamlessly embed the virtual world into their retail strategy by developing in-store and online technologies that allow them to create and maintain meaningful and sincere connections with customers across all channels," Tesař added.

"Compared with the markets abroad, the Czech retail market has some specifics; there is strong competition among the individual retail chains and customers greatly respond to various discounts and special offers. The pressure that is put on retailers is also reflected in supplier relationships and as a result it encourages discussion about amendments to the legislation regulating practices of retail chains that are currently defined in the Act on Significant Market Power," said Aleš Kubáč, Attorney at Law at Ambruz & Dark/Deloitte Legal.

Emerging markets fuel the 50 fastest-growing companies 

The report attributes continued growth in emerging markets to the burgeoning middle classes, youthful populations, and sizeable foreign direct investment. These emerging markets accounted for almost half (24) of the 50 fastest-growing companies over the 2006-2011 period. Chinese and Russian retailers are well-represented among the fastest 50, as well as retailers from Africa/Middle East and Latin America.

"Growth opportunities for many of the world's largest retailers continue to be driven by global expansion in an attempt to make up for slow-growing or stagnant domestic markets," said Ira Kalish, Director of Global Economics at Deloitte Services LP in the United States. "Despite a stumbling global economy, consumers continued to spend in 2011, which has served to boost global revenues. This year's report shows a growing number of retailers in mature markets ramping up their efforts in foreign markets in search of more-attractive growth opportunities, employing multiple market entry strategies, including franchising, licensing and joint ventures, in addition to owned expansion," Kalish added.

Top 10 retailers (fiscal year 2011):

Retail revenue rank Name of company Country of origin 2011 retail revenues
(US$m)

1

Wal-Mart

USA

446 950

2

Carrefour

France

113 197

3

Tesco

United Kingdom

101 574

4

Metro

Germany

92 905

5

Kroger

USA

90 374

6

Costco

USA

88 915

7

Schwarz

Germany

87 841

8

Aldi

Germany

73 375

9

Walgreen

USA

72 184

10

Home Depot

USA

70 395

 

About the Global Powers of Retailing report

The 2013 Global Powers of Retailing report examines the world's 250 largest retail companies and provides an outlook for the global economy, mentions trends for retailers to consider in the forthcoming months, and analyses market capitalisation in the retail sector.

For more information about the Global Powers of Retailing report, please visit our website www.deloitte.com/consumerbusiness.

 

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/cz/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's approximately 195,000 professionals are committed to becoming the standard of excellence.

© 2013 Deloitte Czech Republic

Contacts

Name:
Lukáš Kropík
Company:
Deloitte Czech Republic
Job Title:
PR Manager
Phone:
+420 775 013 139
Email
lkropik@deloittece.com

 

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