Global Powers of Retailing 2021

The world’s Top 250 retailers generated aggregated revenues of US$4.85 trillion in FY2019 (up from US$4.74 trillion in the previous year), according to the Global Powers of Retailing 2021 report.

The Global Powers of Retailing report identifies the 250 largest retailers around the world based on publicly available data for FY2019 (fiscal years ended through 30 June 2020), and analyses their performance across geographies and product sectors. It also provides a global economic outlook, looks at the 50 fastest-growing retailers, and highlights new entrants to the Top 250.

According to the report, annual growth increased to 4.4% on a currency-adjusted composite basis, higher than the previous year’s 4.1% growth.

Changes in consumer behaviour during the pandemic, such as an increase in online activity and reduced spending on discretionary products, have been disruptive to traditional supply chains. Going forward, economic activity and consumer demand will eventually recover, but how and where people shop may not return to pre-pandemic patterns, leaving many store-based retailers facing a significant and permanent loss of business. The challenge for policymakers will be to control the outbreak, protect those who have been disrupted, and speed up the distribution of vaccines. The success of these imperatives will determine the path of the global economy in the year ahead.

Key highlights:

• Apparel and accessories is the most profitable product sector, with a composite net profit margin of 6.9% and a return on assets of 6.3%.

• Fast-moving consumer goods (FMCG) continues to be the largest product sector. Its 135 companies generated 66.0% of the Top 250 retail revenue in FY2019.

The hardlines and leisure goods sector recorded the second highest retail revenue growth rate of 6.5%, and the highest 5-year retail revenue CAGR of 8.7%.

The diversified group recorded the highest revenue growth rate of 6.8%. 16 of the 21 companies achieved positive revenue growth.

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For more information, please visit www.deloitte.com/mt