Deloitte has published its annual Global Powers of Retailing report at the end of a period when retailers have faced some strong economic headwinds against the backdrop of Covid-19. However, retailers around the world remained resilient and managed to grow during unprecedented times.
The report identifies the 250 largest retailers around the world based on publicly available data for financial years ending within the 12 months from 1 July 2020 to 30 June 2021, and analyses their performance across geographies and product sectors. It also provides a global economic outlook, looks at the fastest-growing retailers, and highlights new entrants to the top 250. This year’s report also offers an assessment of retailers’ rising sustainability efforts.
The study shows that the total retail revenue of the top 250 companies reached US$5.1trn during the period, an increase of 5.2% on the previous year.
Walmart, continues to rank number one, followed by Amazon and Costco. The list of the 10 largest retailers in the world continues to be dominated by companies based in the US (7), although for the first time a Chinese retailer (JD) entered the top 10.
A driving factor for retailers continued to be e-commerce, boosted by consumers opting to shop more from home during the pandemic. The importance of online capabilities was a contributing factor for JD’s entry into the top 10, with it listed as one of the year’s fastest-growing retailers. Other key factors driving retailer growth were rapid organic store expansion and increased M&A activity.
The FMCG sector continues to be the largest product sector, accounting for 66.4% of the retail revenue of the top 250 largest retailers.
With 55% of consumers claiming to buy sustainable products or services, Deloitte’s Global Powers of Retailing study also shows that retailers are adjusting their supply chains to respond to sustainable growth and responsible consumption trends. Most retailers in the top 250 have outlined their environmental, social, and governance (ESG) commitments and are making an effort to promote ESG-related metrics. To address the concerns of customers, such as Millennials and Gen Zs, retailers are placing the sustainability of their brands and products at the heart of their business strategies.
A spokesperson for Deloitte said: “Although 2021 was a very challenging year due to increased inflation, labour shortages, and supply chain disruptions caused by the pandemic, the retail sector is on a path of growth, with key players able to respond to the most demanding challenges posed by the new reality”.
Download Deloitte’s Global Powers of Retailing 2022 report
NAM Implications:
- This report has to be one of your most important downloads of the day…
- (after your NamNews Bulletin, obviously!)
- A great way of placing the big issues in a truly global, but retail context…
- …of your largest customers.
