By Rob Starr, Content Manager, Big4.com
According to Deloitte’s 16th annual Global Powers of Retailing report, the world’s largest retailers overcame challenging economic conditions in their local markets, to grow revenue by 5.1% to US$4.271 trillion in fiscal 2011. Building on the previous year’s 5.3 percent growth, more than 80 percent of the top 250 (204 companies) posted an increase in retail revenue.
David White, Deloitte Australia Partner and retail industry leader said, “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. To do this they are employing multiple market entry strategies including franchising, licensing and joint ventures, in addition to owned expansion.”
Australia’s Woolworths and Wesfarmers continue to punch above their weight compared to the world’s Top 250. In this year’s rankings, Woolworths is up one place to 17th and Wesfarmers moved up from 21st to 18th. Compared to the majority of the top 20 global retailers who derive their income from stores located in a minimum of 10 different countries, Australia’s two largest retailers each manage to achieve more than US$50 billion in revenue by operating at home and in New Zealand.
Emerging markets fuel 50 fastest-growing companies – Burgeoning middle classes, youthful populations, and sizeable foreign direct investment in emerging markets such as China and parts of the Middle East and Africa helped some retailers to achieve a growth rate that was nearly four times faster than that for the top 250 as a whole.
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.