Retail (world market)

E-commerce

Main article: E-commerce

E-commerce occupies the increasing share of the world market of retail.

Retail in Russia

Main article: Retail (market of Russia)

2019: Record number of the closed shops in the USA

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

2018: The largest retail networks in the world: Walmart remains the leader

According to the report of Global Powers of Retailing 2018 prepared Deloitte conducting the three on sales volume in the world create:

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

In Europe are in the lead:

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

2017: "Tape", X5 and Magnet were included into the twenty of the most fast-growing retailers in the world — Deloitte

According to a research "World sector of retail: radical restructurings and revival of a business activity^[1]", prepared "Deloitte Tush Tomatsu Limited" (the international network "Deloitte"), in 2016 financial year of 250 largest world retail companies received revenue in the amount of $4.4 trillion the USA, i.e. its cumulative growth was 4.1%.

The largest retailers in 2018, data of Deloitte

The largest Russian retailers in 2018 strongly promoted in rating. X5 Retail Group moved to the 47th position against the 61st the previous year, Magnet  — to the 51st (before took the 57th place), Dixy Group rose by one line  — from the 202nd on the 201st place.

Relocation of Lenta network became the most considerable: in a year it rose from the 207th to the 157th place. It also entered ten the world ranking of the most fast-growing retail chain stores of the world, having outstripped Nike, Amazon and the Japanese Fast Retailing (Uniqlo network). Growth of revenue of Lenta in 2017 was 19.2%  — to 365.2 billion rubles. In the 2016th growth of turnover of network was even higher  — 21.2% in comparison with the level of the 2015th. 

"Magnet" closed the twenty of the most fast-growing in the world of retail networks with an indicator of cumulative annual average growth rate of revenue in 2012-2017 in 20.3%. In 2017 the company gained $19.3 billion.

The most fast-growing retailers in 2018, data of Deloitte

X5 Retail Group which revenue during the period from 2012 to 2017 grew on average for 21.4% annually took 18-e the place. In 2017 revenue of the company  of nearly $22.2 billion.

The largest Russian retailers actively combine technology improvement and  Internet integration with  traditional consolidation and  absorption in      the Russian market which is still fragmented in comparison with retail markets in Europe and the USA — the director of the department of consulting of group on  service of retail and  distribution of Deloitte company of the CIS Vardan Gasparyan commented on RIA Novosti results of rating.

The American network Walmart which revenue in 2017 financial year made more than $500 billion became the leader of the rating. On the second and third place there were riteleyra from the USA of Costco and Kroger.

In Europe the greatest number of retailers from number 250 of the largest companies works that makes 87 companies (34.8%). The largest companies are located in Germany, their turnover averages $24.7 billion that considerably exceeds an average value in $18.1 billion for the largest 250 companies.

"Now the world economy endures the period of extraordinary wellbeing and significant increase in growth rates. In the countries of Europe and in Japan the tendency to growth acceleration, in China and the USA — to stabilization, and in many developing countries — to recovery and revival of growth is observed — Ira Kalish, the chief international economist of the international network "Deloitte" explained. — Sustained economic growth is optimum for the enterprises of the retail sector. However, they still should overcome negative effects of the growing inequality of incomes, protectionist measures and tightening of monetary policy".

"New technologies and the Internet lead to changes in the retail industry around the world, and Russia is not an exception. The largest Russian retailers already actively invest in development of new technologies – for example, by means of cooperation with startups, interaction with buyers on social networks. Importance of new technologies for the Russian retail will grow and further as possibilities of organic growth by opening of new shops decrease. In general the Russian consumer is susceptible to new technologies, and the consumer will push retail networks in the future to development and implementation of advanced technologies", - Vladimir Biryukov, the partner of Department of audit, the head of group on service retail tells, to wholesale and distribution of company Deloitte, CIS.

250 largest world companies of retail

Five leading enterprises of retail saved the leader positions. The combination of such factors as organic growth, carrying out large deals on acquisition and volatility of foreign exchange rates, led to shifts top-10 inside the world companies of retail which share in consolidated revenues of 250 largest world retail companies made 30.7% (in comparison with 30.4% last year).

For the first time for the last four years of the company which are engaged in sale of clothes and accessories did not take the leading position, but, nevertheless, remained the most profitable segment of the industry.

The companies on sales of goods of broad consumption ^[2] with a big separation are the largest (their average revenue made nearly 21.7 billion US dollars) and also the most numerous (these are 135 companies which are kept by 54% of the leading 250 companies of the world, and two thirds of their revenue).

The share of the European countries in the list of 250 leading companies was again reduced and kept 82 companies (in 2015 — 85 companies, in 2014 — 93 companies), thereby having increased a gap with the companies of the North American continent. However, despite it, the European retail companies still are the most active in the field of development of the retail networks outside the national markets. Nearly 41% of consolidated revenues of such enterprises were received from the international activity that exceeds the total revenue of 250 leading world retail companies almost twice in general.

Radical restructurings and revival of a business activity

"The world sector of retail in 2018" is also presented the overview of the main changes in rules of retail within the next stage of radical restructurings in the report. Revival of a business activity requires implementation of innovations, the updated instruments of interaction, consolidation, integration and automation that will allow to increase efficiency of conducting retail business both now, and in the future.

In the report it is possible to select four top trends:

• Formation of high quality digital opportunities. The retail companies worldwide promptly adapt to the fact that, from the point of view of the consumer, process of shopping is not only in making a choice between normal retail store and online store or to define a sales channel, optimal for themselves. On the contrary, consumers aim to find independence of sales channels.
• Consolidation of advantages of standard retail stores and online stores allows to compensate the missed time. Many market players who long stood aside, without being in time behind development of digital technologies, now try to make up for lost time.
• Formation of unique consumer experience. Standard retail stores do not give in. In them 90% of all retail buyings are still performed worldwide. Successfully to compete with the online stores providing to the buyers convenience of purchases and inexhaustible product assortment, offered online, retail stores need to increase customer service quality and degree of their involvement into brand development.
• Implementation of the latest technologies in retail process. Everyone retail the enterprises should watch closely development of the latest technologies, in particular Internet of Things artificial intelligence, added and virtual reality, a front line robotics, and whenever possible implement them in retail process.

In the report "The world sector of retail in 2017: the science and art of work with the consumer" Deloitte networks is discussed skill of interaction with the consumer, i.e. methods of formation of the best practices of work with clients constructed on the basis of new technologies and also methods of increase in consumer loyalty. Those forecasts which seemed unrealizable earlier became the ordinary today. Innovators in retail trade know that computer technologies stopped being the annex to consumer experience and turned into its integral part. However technologies alone are not enough. The new goods and fascinating impressions of them blowing the mind are necessary for consumers.

Five key trends revealed according to the results of a research:

• Can mean "more" "less". Consumers think of categories of quantity of the things belonging to them more and more seldom and more and more actively are interested in efficiency of the made choice concerning daily things and impressions.
• "Socially network" economy. Consumers aim to receive impressions and to purchase goods which are entered in their concept of the "personal brand" provided by them on social networks.
• World "reteylization". Emergence of the movement of "makers" (supporters of production of goods from salvage using the latest technologies), the economy of joint consumption and other factors more and more complicate determination of a concept of the retailer and his business. So, nonconventional retailers work on creation of new business models to meet expectations of buyers. Among such innovations for clients — a paid subscription to obtaining notifications on the goods or services interesting them and also exclusive sales at strongly cut price during very short time.
• Shopping on demand. The relevance of this trend will be defined by opportunities of retailers to meet expectations of the modern consumer concerning purchase and the goods delivery on demand.
• Life after the exhibitor. Exponential technologies, such as artificial intelligence, robotization and virtual reality, change our way of life and methods of shopping.

2015: Data Deloitte

In 2015 financial year of 250 largest world retail companies earned in total 4.31 trillion dollars USA, i.e. the cumulative growth of their revenue was 5.2%.

The third year in a row growth of revenue of the companies from top-250, engaged sale of clothes and accessories, was higher, than in other sectors. This category of retailers traditionally is considered the most profitable, and 2015 financial year did not become an exception. At the same time the companies selling the consumer goods with a big separation are in the lead on total revenue (on average — nearly 21.6 billion US dollars) and also on number (133 companies, i.e. more than a half of the leading 250 companies of the world; the total volume of their revenue is two thirds in the general share).

Extent of globalization of retail remained at the level of last year. Two thirds of the retail companies from top-250 worked outside the country and conducted activity on average more than in 10 countries; at the same time nearly 25% of consolidated retail revenues fell to the share of foreign transactions.

Experts of Deloitte company published annual analytics of the World sector of retail of 2015 at the beginning of 2015. According to a research, the Russian companies strengthened the positions in the world ranking of 250 largest retailers:

• "Magnet" - the 55th place
• "X5 Retail Group" is the 58th place
• Dixy is the 166th place
• M.Video is the 192nd place
• "Tape" - the 196th place
• "OK" - the 206th place

It is remarkable that all six above-mentioned Russian retailers were included into number 50 of the fast-growing retail companies of the world, at the same time the Russian leader in this indicator — "Dixy — entered in top-10. On representation in the list of 50 most fast-growing retail companies Russia is also one of leaders, ceding only the USA which in this rating is provided 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 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. Wi-Fi

• 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

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