Lulu Group, Al-Futtaim Holding and Savola Group appear on Deloitte’s 250 global retailers
The top 250 global retailers generated aggregated revenues of $4.31 trillion in fiscal year 2015, representing composite growth of 5.2 percent, according to the Global Powers of Retailing 2017: The art and science of customers report from Deloitte Global.
“Slow economic growth in major developed economies, high levels of debt in emerging countries, deflation or low inflation in rich countries and a protectionist backlash against globalization were among dynamics which contributed to a challenging economic environment for retailers,” explained Dr. Ira Kalish, Deloitte Global Chief Economist. “And yet people still need to shop, so the industry carries on. In some places and with some cohorts of shoppers, the outlook for retailers is favorable.”
“The Middle East remains an attractive destination for retailers, with 3 retailers ranking in Deloitte’s report of the 250 largest retailers around the world: Lulu Group, Majid Al-Futtaim Holding LLC and Savola Group. Together, the Africa/Middle East region’s 19.1 percent growth rate and 5.8 percent net profit margin were the highest among the five geographic regions in FY2015,” explains Herve Ballantyne, partner and Consumer & Industrial Products Industry leader, Deloitte, Middle East.
Other highlights:
Global Ranking of Middle Eastern retailer: * LULU Group: 153 * Al-Futtaim Group: 160 * Savola Group (Panda) KSA: 240 With $6.2 billion revenue, Lulu which has operations in nine countries, also finds a place among world’s 50 fastest growing retailers. Ranked 27 in the list of fastest growing retailers, Lulu Group recorded a compound annual growth of 17.3% for the 2010-15 period. MAF Holding’s Carrefour was 160the in global list with retail revenues of $6.01 billion & Saudi Arabia’s Savola Group came third in the ME region and ranked 240th globally with retail revenues of $3.6 billion.
Global Powers of Retailing Top 250
For the third year in a row, revenue growth for the Top 250 apparel and accessories retailers outperformed other product sectors. Historically, this category of retailers has also been the most profitable, and fiscal year 2015 was no exception. However, retailers of fastmoving consumer goodsπ (FMCG) are, by far, the largest companies (average retail revenue of nearly US$21.6 billion) as well as the most numerous (133 retailers accounting for just over half of all Top 250 companies and twothirds of Top 250 revenue).
The level of retail globalization appears to be at the same level as the previous year. Twothirds of Top 250 retailers operated outside their home country borders and on average, they had retail operations in more than 10 countries and derived nearly one-quarter of their composite retail revenue from foreign operations.
The art and science of customers
Global Powers of Retailing 2017 also discusses the art and science of customer engagement to help retailers design fresh experiences, enabled by the right technology, and strengthen customer loyalty. What was once considered futuristic is now table stakes. Retail innovators know technology is no longer supplemental to the shopping experience, it is fundamental. Technology alone, however, is not enough. Customers are seeking new and surprising products and experiences. The five trends identified in the report are: * Less is more. Customers are defining themselves less by how many things they own and more by how curated their lives are in terms of possessions and experiences.
* “Following” economy. Customers are seeking experiences and products that reflect the personal brand they promote on social media.
* “Retailization” of the world. The maker movement, the sharing economy, and other factors have made it increasingly difficult to define what a retailer is and does - non-traditional retailers are developing new business models to serve customer needs, such as subscription services and flash-sales.
* On-demand shopping and fulfillment. Relevancy will be determined by the ability of retailers to meet the on-demand mindset of the modern customer.
* Exponential living. Exponential technologies, like artificial intelligence, robotics and virtual reality are changing how we live and how we will shop.