The Top 250 global retailers generated aggregated revenue of US$5.11 trillion in fiscal year 2020*, representing composite growth of 5.2%, according to Global Powers of Retailing 2022, a new report from Deloitte. The report identifies the 250 largest retailers around the world based on publicly available data and analyses their performance across geographies and product sectors. It
The Top 250 global retailers generated aggregated revenue of US$5.11 trillion in fiscal year 2020*, representing composite growth of 5.2%, according to Global Powers of Retailing 2022, a new report from Deloitte.
The report identifies the 250 largest retailers around the world based on publicly available data and analyses their performance across geographies and product sectors. It also looks at the 50 fastest growing retailers, highlights new entrants to the Top 250, and provides a global economic outlook.
“While we entered 2022 with some very serious headwinds – inflation, labour shortages, supply chain disruption, a resurging virus – retailers now have reason to be optimistic,” says Dr. Ira Kalish, Deloitte Global’s Chief Economist. “Major economies will most likely grow this year, consumers are expected to have more cash, and trade and cross-border investment will continue apace.”
Global Powers of Retailing Top 250
The minimum revenue for a company to enter the Top 250 rankings is US$4.1 billion, up from US$4.0 billion in the previous year, with the average company size increasing from US$19.4 billion to US$20.4 billion.
The largest product sector continues to be fast-moving consumer goods (products sold quickly and at relatively low cost), representing 66.4% of the retail revenue of the top 250 companies. Hardlines (such as appliances) and leisure goods follow with 21.0% share of top 250 revenue and recorded the highest year-on-year retail revenue growth rate of 14.5%.
Europe has the highest number of Top 250 retailers, with 90 companies based in the region, while North America has the highest share of Top 250 retail revenue at 48.4%. Asia Pacific accounts for 15.9% of the global Top 250 revenue, with a total of 61 retailers in the ranking – of which six are headquartered in Southeast Asia, comprising two each from Indonesia and Thailand, and one each from Philippines and Vietnam.
Fastest 50 retailers
Annual growth in retail revenue for the Fastest 50 – which are the 50 companies in the global Top 250 retailers with the highest CAGR in retail revenue for the period FY2015 to FY2020 – was 18.7%, 6.2 percentage points higher than the 12.5% annual growth for the Fastest 50 in last year’s report. This was largely driven by e-commerce, rapid organic store expansion, M&A activity, and continuing efforts by retailers to build a strong consumer base.
From the Southeast Asia region, two players – one Indonesian convenience/forecourt store player, and one Vietnamese electronics specialty retailer – also made it to the ranking.
Amongst the Fastest 50, 27 companies were from the FMCG sector (compared to 24 in FY2019), and 16 were from the hardlines and leisure goods sector (compared to 13 in FY2019). There was a drop in the number of companies in the Fastest 50 from the other two product sectors – apparel and accessories (down from nine to five), and diversified (down from four to two), as these sectors suffered from store closures and reduced consumer demand due to the COVID-19 pandemic.
“Despite a year of economic fits and starts, retail appears to be on an upward trajectory, with innovation in digital and sustainability as exciting bright spots in the face of the disruption and uncertainty,” says Evan Sheehan, Deloitte Global’s Retail, Wholesale & Distribution Sector Leader. “Unfortunately, churn is likely to stick with us for a while, so anticipating customer needs and expectations remains crucial. The retailers that can get consumers what they want, where they want it, and when they want it will be the ones that continue to win, no matter where they operate.”
Sustainability in retail
Driven by the three-pronged effect of consumer behaviour, government regulations, and investor sentiment, the report also finds that retailers globally are redirecting their strategic planning efforts and investments toward sustainable and responsible growth. Almost all the retailers in the Top 250 have outlined their environmental, social and governance (ESG) commitments – and the same can be said for many of Southeast Asia’s top retailers.
Indeed, one of the biggest drivers behind the focus on the environment and social issues is the emergence of the ‘responsible consumer’. “Consumers, particularly those from the millennial and Gen Z age groups, are showing a strong interest in sustainability, and expect the same from the companies they interact with,” comments Pua Wee Meng, Deloitte Southeast Asia’s Consumer Industry Leader. “Across the board, retailers are now considering the sustainability credentials of their products, as well as their overall brand, as a core part of their business, in order to resonate with the concerns of an increasingly wide range of consumers.”
At the same time, retailers are also facing pressure in the boardroom from their shareholders and other investors to adopt sustainable strategies. “Investors are also getting increasingly conscious of how their own brand and reputation are affected by the retailers they support,” continues Wee Meng. “Some of the key steps that regional retailers are taking to address these concerns include increasing the efficiency of energy use, using more sustainable materials, and developing climate-friendly products or services. But more work remains to be done in terms of the more onerous – but also higher value-adding – actions, such as requiring suppliers and business partners to meet specific sustainability criteria, updating or relocating facilities to make them more resistant to climate impacts, and tying the compensation of senior leaders to sustainability performance.”
*Financial years ending within the 12 months from 1 July 2020 to 30 June 2021