These are the biggest retailers in the world, study says
It’s been quite a year (or two), but despite ongoing disruption, global retail remains resilient.
The total retail revenue of the top 250 retailers around the world grew by 5.2% to US$5.1 trillion in fiscal 2020 (July 1, 2020 to June 30, 2021), according to Deloitte’s new “Global Powers of Retailing 2022” report. That’s up from 4.4% growth in the previous period. However, 69 companies reported declining sales, 14 more than in the previous year.
The findings in the report, which ranks the top 250 retailers by revenue and names the “fastest 50,” are based primarily on company-released information. The report also provides a global economic outlook, analyzes the top 10 retailers, and highlights the rising importance of sustainability efforts.
“Despite a year of economic fits and starts, retail appears to be on an upward trajectory, with innovation in digital and sustainability as exciting bright spots in the face of the disruption and uncertainty,” said Evan Sheehan, Deloitte’s global retail, wholesale and distribution leader, in the report. “Unfortunately, churn is likely to stick with us for a while, so anticipating customer needs has never been more critical. The retailers that can get consumers what they want, where they want it, and when they want it will be the ones that continue to win—no matter where they operate.”
The top three global retailers all held on to their spots: Walmart is number one, with US $559.15 billion in retail revenue, followed by Amazon (US$213.57 billion), and Costco ($166.76 billion).
Other grocery, pharmacy and mass merchandise retailers in the top 10 are Kroger at number six (US$131.62 billion), Walgreens Boots Alliance at number seven (US$117.7 billion), Aldi in the eighth spot (US$117.04 billion), and Target at number 10 (US$92.4 billion).
What makes the top three tops? Walmart’s 6.7% revenue growth was fuelled by growth in comparable store sales, along with a rapid rise in e-commerce sales. The report notes that U.S. e-commerce sales grew by 79%, as Walmart makes significant investments in this space. In the U.S., Canada, Mexico and China, the retailer has launched multiple delivery and pickup initiatives.
READ: Q&A: Walmart Canada’s Laurent Duray on the retailer’s aggressive e-comm play
At number two, Amazon achieved the highest retail revenue growth among the top 10. Retail revenue (first-party retail sales only) soared by 34.8% as consumers did more online shopping during the COVID-19 pandemic. However, the report notes that higher demand was partially offset by fulfillment network capacity and supply chain constraints.
In third place, Costco’s retail revenue was up by 9.2%, driven by an 8% increase in comparable sales, along with new warehouse openings, including nine in the U.S. and one in Canada. The report notes that Costco has also been investing in delivery solutions. In March 2020, it completed the US$1 billion acquisition of Innovel Solutions, a logistics solutions company that provides last-mile delivery and “white glove” service for big and bulky products.
How did Canada’s “big three” grocers fare? Loblaw ranked 25th on the top 250 list, with US$38.66 billion in retail revenue, up six spots from the previous fiscal year. Empire landed at number 50 with US$21.58 billion in retail revenue, up five spots from the previous period. Metro is number 79, with US$13.37 billion in retail revenue, up five spots from the previous period.
Also are on list are: Alimentation Couche-Tard, which landed at number 88 with US$12.11 billion in retail revenue; and Save-On-Foods, which holds the 201st spot with US$5.48 billion in retail revenue.
The full report can be found here.