2019/01/19 07:04:06

Retail (Global)

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E-commerce
Retail in Russia
Chronicle
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E-commerce

Main article: E-Commerce

E-commerce occupies an increasing share of the global retail market.

Retail in Russia

Main article: Retail trade in Russia

Chronicle

2024: Global retail volume up 4.37% to $30.6 trillion for the year

At the end of 2024, the volume of retail trade on a global scale reached $30.6 trillion. This is 4.37% more compared to the previous year, when the sector's turnover was estimated at $29.3 trillion. Such data are provided in the Capital One Shopping review, which TAdviser got acquainted with at the end of May 2025.

The report said traditional retail accounted for 80.4% of the industry's total volume in 2024. The remaining 19.6% was provided by e-commerce: sales in this segment were at the level of $6 trillion, which is 7.65% more than in 2023. Thus, the growth rate of the retail Internet sector exceeds the indicator for the industry as a whole. In 2024, retail sales through regular offline stores amounted to $24.6 trillion, which is 3.6% more compared to the previous year.

The study said that in 2024, the number of retail buyers worldwide reached 4.8 billion people. For comparison, a year earlier this value was 4.6 billion. It recorded an increase of about 4% on an annualized basis.

The review also notes that the share of American retail in global sales is 23.8%. In particular, in 2024, products were sold in the United States by $7.27 trillion, which is 2.7% more than a year earlier. The average American consumer spends $21,127 a year on retail purchases.

In 2025, the volume of retail trade in the world is expected to reach $31.7 trillion. Analysts believe that in the future, the average annual growth rate in complex percentages (CAGR) will be 2.67%. As a result, by 2030 sales will rise to $35.8 trillion. The number of retail customers will also continue to increase steadily and will reach approximately 5.6 billion by 2030.^[1]

2019: Record number of US stores closed

Red - the number of closed stores, gray - open. Data for 2012-2019

2018: Biggest retailers in the world: Walmart remains a leader

According to the Global Powers of Retailing 2018 report prepared by Deloitte, the leading three in terms of sales in the world form:

Wal-Mart Stores Inc. - $486 billion,
Costco Wholesale Corporation $118 billion and
Kroger - $115 billion.

In Europe, leading:

Schwarz Unternehmenstreuhand KG (Germany, $99 billion),
Aldi (Germany, $85 billion) and
Carrefour (France, $84 billion).

2017: Lenta, X5 and Magnit are among the top twenty fastest growing retailers in the world - Deloitte

According to the study "World Retail Sector: Fundamental Transformations and Revitalization of Commercial Activities^[2]," prepared by Deloitte Touche Tomatsu Limited (Deloitte International Network), in fiscal 2016, the 250 largest global retail companies received revenue of $4.4 trillion, USA that is, its total growth was 4.1%.

Biggest retailers in 2018, Deloitte data

The largest Russian retailers in 2018 have made great progress in the ranking. X5 Retail Group moved to 47th position against 61st a year earlier, Magnit moved to 51st (before that it occupied 57th place), Dixy Group rose one line - from 202nd to 201st place.

The most significant was the movement of the Lenta network: for the year it rose from 207th to 157th place. It also entered the top ten world ranking of the fastest growing retail chains in the world, ahead of Nike, Amazon and Japan's Fast Retailing (Uniqlo chain). Lenta's revenue growth in 2017 was 19.2% , to RUB 365.2 billion. In 2016 , the growth of network turnover was even higher - 21.2% compared to the level of 2015.

Magnit closed the top twenty fastest growing retailers in the world with a combined CAGR of 20.3% in 2012-2017. In 2017, the company raised $19.3 billion.

Fastest-growing retailers in 2018, Deloitte data

X5 Retail Group, whose revenue grew by an average of 21.4% annually between 2012 and 2017, ranked 18th. In 2017, the company's revenue was almost $22.2 billion.

The largest Russian retailers are actively combining technological improvement and Internet integration with traditional consolidation and acquisitions in the Russian market, which is still fragmented compared to retail markets in Europe and the United States, "Vardan Gasparyan, director of the consulting department of the retail and distribution services group at Deloitte CIS, commented to RIA Novosti.

The leader of the rating was the American Walmart chain, whose revenue in fiscal 2017 amounted to more than $500 billion. In second and third place were the US riteliers Costco and Kroger.

Europe has the largest number of retailers out of the 250 largest companies, which is 87 companies (34.8%). The largest companies are located in Germany, their turnover on average is $24.7 billion, which significantly exceeds the average of $18.1 billion for the largest 250 companies.

"The global economy is currently experiencing a period of extraordinary prosperity and a significant increase in growth. In countries Europe Japan and in, there is a tendency to accelerate growth, China in the United States to stabilize, and in many developing countries to recover and revive growth, "explained Ira Kalish, chief international economist at the Deloitte international network. - For businesses in the retail sector, sustainable economic growth is most favorable. However, they will still have to overcome the negative consequences of growing income inequality, protectionist measures and tightening monetary policy. "

"New technologies and the Internet are driving changes in the retail industry worldwide, and Russia is no exception. The largest Russian retailers are already actively investing in the development of new technologies - for example, through cooperation with startups, interaction with buyers on social networks. The importance of new technologies for Russian retail will continue to grow as organic growth opportunities decline by opening new stores. In general, the Russian consumer is susceptible to new technologies, and it is the consumer who will push retail chains in the future to develop and implement advanced technologies, "says Vladimir Biryukov, partner of the Audit Department, head of the retail, wholesale and distribution services group at Deloitte, CIS

The world's 250 largest retailers

The top five retailers retained their leadership positions. The combination of organic growth, major acquisition transactions and volatility in foreign exchange rates led to a reshuffle within the top 10 global retail companies, whose share in the total revenue of the 250 largest global retail companies amounted to 30.7% (compared with 30.4% last year).

For the first time in four years, apparel and accessories companies have not taken the lead, but have nonetheless remained the most profitable segment of the industry.

Companies selling broad- ^[3] goods ^[4] by a wide margin, they are the largest (their average revenue was almost $21.7 billion), as well as the most numerous (these are 135 companies that make up 54% of the world's leading 250 companies, and two-thirds of their revenue).

The share of European countries in the list of 250 leading companies again decreased and amounted to 82 companies (in 2015 - 85 companies, in 2014 - 93 companies), thereby increasing the gap with companies on the North American continent. However, despite this, European retailers are still the most active in the development of their retail chains outside of national markets. Almost 41% of the total revenue of such enterprises was obtained from international activities, which is almost twice the revenue of 250 leading global retail companies in general.

Fundamental transformation and revitalization of business activities

The Global Retail Sector 2018 report also provides an overview of major changes to retail regulations as part of another phase of fundamental transformation. To revitalize business activities, innovations, updated tools for interaction, consolidation, integration and automation are needed, which will increase the efficiency of retail business both now and in the future.

The report highlights four main trends:

Building high-end digital capabilities. Retailers around the world are rapidly adjusting to the fact that, from the consumer's point of view, the shopping process is not just about choosing between a regular retail store and an online store or determining the best distribution channel for yourself. On the contrary, consumers seek independence from distribution channels.
Combining the benefits of standard retail and online stores to compensate for lost time. Many market players who stayed on the sidelines for a long time, not having time to develop digital technologies, are now trying to catch up.
Building a unique consumer experience. Standard retail stores do not give up their positions. They still carry 90% of all retail purchases worldwide. In order to successfully compete with online stores that provide their customers with convenience of shopping and an inexhaustible range of products offered online, retail stores need to improve the quality of customer service and the degree of their involvement in brand development.
Introduction of the latest technologies into the retail process. Each retail enterprise should closely monitor the development of the latest technologies, in particular, the Internet of Things, artificial intelligence, augmented and virtual reality, advanced robotics, and, if possible, introduce them into the retail process.

science The Deloitte Network's "Global Retail Sector 2017: and the Art of Consumer Engagement" report discusses the skill of consumer engagement, i.e. how to build customer excellence built around new technologies, as well as how to increase consumer loyalty. Those forecasts that used to seem unrealizable have become commonplace today. Innovators in retail to trade know that computer technology has ceased to be an application to consumer experience and has become an integral part of it. However, technology alone is not enough. Consumers need exciting new products and exciting experiences.

Five key trends identified from the study:

"Less" may mean "more." Consumers are less likely to think in terms of the number of things they own and are increasingly interested in the effectiveness of their choices regarding everyday things and experiences.
"Socially networked" economy. Consumers strive to get an experience and purchase products that fit into the concept of their "personal brand" presented by them on social networks.
Worldwide "Retailization." The emergence of the movement of "makers" (supporters of the manufacture of goods from recyclable materials using the latest technologies), the economy of joint consumption and other factors are increasingly complicating the definition of the concept of the retailer and its business. So, unconventional retailers are working to create new business models in order to meet the expectations of buyers. Among such innovations for customers are a paid subscription to receive notifications about products or services of interest to them, as well as exclusive sales at a very low price for a very short time.
On-demand shopping. The relevance of this trend will be determined by the capabilities of retailers to meet the expectations of the modern consumer regarding the purchase and delivery of goods on demand.
Exponential life. Exponential technologies like artificial intelligence, robotization and virtual reality are changing the way we live and shop.

2015: Deloitte Data

In fiscal 2015, the world's 250 largest retailers earned a total of 4.31 trillion, a dollars USA cumulative increase in their revenue of 5.2%.

For the third year in a row, revenue growth in the top 250 clothing and accessories companies was higher than in other sectors. This category of retailers is traditionally considered the most profitable, and the 2015 fiscal year was no exception. At the same time, companies selling consumer goods by a wide margin lead in terms of revenue (on average - almost 21.6 billion US dollars), as well as in terms of number (133 companies, that is, more than half of the leading 250 companies in the world; their total revenue is two-thirds of the total share).

The degree of globalization of retail trade remained at the level of last year. Two-thirds of the top 250 retailers operated outside their home country and operated in more than 10 countries on average; at the same time, foreign operations accounted for almost 25% of total retail revenue.

Deloitte experts published in early 2015 the annual analytics of the World Retail Sector 2015. According to the study, Russian companies have strengthened their positions in the world ranking of the 250 largest retailers:

"Magnet" - 55th place
"X5 Group" - 58th place
"Dixie" - 166 place
"M.Video" - 192nd place
"Ribbon" - 196 place
O'key"" - 206 place

It is noteworthy that all six of the above Russian retailers were among the 50 fast-growing retail companies in the world, while the Russian leader in this indicator, Dixy, entered the top 10. By representation in the list of the 50 fastest growing retail companies, Russia is also one of the leaders, second only to the United States, which in this ranking is represented by ten companies. "

The top 250 global retailers generated revenue of US$4.4 trillion in fiscal year 2013, each with an average size of more than US$17.4 billion, according to the 2015 Global Powers of Retailing, Embracing Innovation report from Deloitte Touche Tohmatsu Limited (DTTL), in conjunction with STORES Media. This year’s report explores innovative trends in retail, forecasts for 2015 as well as the strategies retailers are utilizing to address the disruptive changes impacting the sector.

The 250 largest retailers around the world are analyzed based on their financial performance, geographic region, product sector and e-commerce activity. Revenue growth for the top 250 retailers, which began declining in 2011, continued to slow in fiscal year 2013. According to the report, sales-weighted, currency-adjusted retail revenue was 4.1 percent for the top 250, following a 4.9 percent gain in fiscal year 2012. While growth continued to decline, nearly 80 percent of the top 250 (199 companies) posted an increase in retail revenue in fiscal year 2013.

`The sluggish global economy in 2014 left many consumers financially constrained and retail sales under pressure. Thus, the prosperity of the global retail sector in 2015 will very much depend on the economic stability of several of the largest economies. China, the Eurozone as well as a few key emerging economies had a particularly tough 2014. Comparatively, the US and British economies continue to do well, with indicators pointing to the likelihood of strong growth in 2015 and possibly beyond,` said Dr. Ira Kalish, DTTL Chief Global Economist.

Top retail trends in 2015 • Travel retailing –International tourism is set to continue to rise above expectations despite continuing global geopolitical and economic challenges. The expanding middle classes of emerging markets are traveling to the world’s capitals and boosting retail sales. For example, over half of France’s 16 billion Euros luxury industry depends on tourists. In 2015, retailers are expected to increasingly cater to high-spending travelers, especially emerging market tourists to drive growth.

• Mobile retailing – Mobile retailing is expected to continue to grow aggressively. Sixty-five percent of the global population will be using a mobile phone by 2015 and an estimated 83 percent of internet usage will be through handheld devices. Retailers will need to respond by offering free in-store Wi-Fi and mobile-friendly retail websites optimized for different kinds of personal devices. Privacy and security will become increasingly important as trust, transparency and protecting customer information will be critical in retaining loyalty as mobile retailing becomes the norm.

• Faster retailing - Speed continues to remain an important trend in retail. This includes: `fast fashion` (getting runway styles to the stores as soon as possible); limited-time-only products and flash sales to drive urgency and immediate purchase; pop-up establishments to quickly get products and services to market and build buzz; and self-service check-out and kiosks to reduce or eliminate waiting. In 2015, retailing is forecast to get even faster to meet consumers’ desires. Millennials will be driving much of this as they are the largest generation, with a lot of spending power, and carry a lot of influence. They prefer fast response and immediate gratification, and retailers will cater to that.

• Experience retailing - Retailing is no longer just about the product, but the experience. Retailers will continue to explore innovative ways to enhance the buying experience for their customers through social media campaigns, festivals, fashion shows and interactive displays.

• Innovative retailing- The retail industry will continue to be disrupted by new technologies and innovative competition. More retailers are likely to adopt innovative practices, embrace technology and use it in creative ways.

File:Top 250 global retailers 2013.pdf