Stores 2008 Global Powers of Retailing - (Page 28) 2008 global powers of retailing By contrast, US retailers have stayed closer to home, doing business in an average 3.9 countries in 2006, while the average Japanese retailer operated in three countries. Latin American companies tend to be the most insular. The number of countries of operation for the retailers based in this region averaged just 1.9. Average profit margins for the various geographic regions reflect the predominant retail formats operated by the retailers in those regions. While the Latin American companies generated above-average profitability at 4.4% of sales, matching their robust sales growth, the four African companies, which operate primarily low-margin food-based formats, did not fare as well. Many of the Asia/Pacific-based companies are also primarily food retailers. As well, this region is represented by a high number of consumer electronics merchants, which contributed to a low average profit margin. Higher-margin apparel and specialty retailers are more likely to be found among the North American and European regions, contributing to better profitability performance for these groups. The Top 10 European retailers remained the same in 2006 with a slight change in the order. Tesco climbed to the #2 spot ahead of Metro, while Ahold continued to fall, landing in tenth place behind Leclerc. Tesco continues to gain on Carrefour, Europe’s biggest retailer. Japan is losing its dominance in the Asia/Pacific region. In last year’s Global Powers of Retailing report, Japanese companies accounted for seven of the region’s top 10 retailers. In 2006, Japan is represented by five companies. South Korea appears for the first time on the Asia/Pacific Top 10 as home to Lotte Shopping Company and Shinsegae Company. In only its second year as a new company, Seven & I Holdings has overtaken AEON as the #1 ranked Asian retailer. Established in 2005 by Ito-Yokado, Seven Eleven Japan, and Denny’s Japan, this global powerhouse now also includes the Millennium Retailing Group and York-Benimaru, among others. While many of the Latin American retailers moved up in the rankings in 2006, the region still has only nine companies among the Top 250. The largest is Brazil’s Grupo Pão de Açucar, which is 34% owned by France’s Casino. In last year’s analysis, the company was accounted for as part of Casino’s international operations. However, because the retailer is only proportionately consolidated into Casino’s results, it has been listed as a separate entity. Last year’s top-ranked Latin American retailer, Casas Bahia, has fallen to fourth place. Chile’s Distribucion y Servicio (#236 in 2005) did not generate sufficient sales to place among this year’s Top 250. The four retailers from Africa/Middle East is one less than last year. All are headquartered in South Africa. Pick ’n Pay Top 10 retailers by region All of the Top 10 North American retailers are among the 20 largest retailers worldwide. All are based in the US. The largest Canadian retailer, Loblaw, ranks well down the Top 250 list at 36th overall. Changes from last year’s list include the break-up of Albertsons, which was replaced on the region’s Top 10 list by CVS. Walgreens surpassed Lowe’s to claim seventh place among the US pack. Top 10 North American retailers, 2006 N. America rank 1 2 3 4 5 6 7 8 9 10 Source: published company data and Planet Retail Top 250 rank 1 3 6 7 8 9 12 13 18 19 Company Wal-Mart Home Depot Kroger Target Costco Sears Holdings Walgreens Lowe’s CVS Safeway Retail sales (US$ billions) $345.0 $90.8 $66.1 $59.5 $59.0 $53.0 $47.4 $46.9 $40.3 $40.2 Country of origin US US US US US US US US US US G28 STORES / January 2008 www.deloitte.com/consumerbusiness http://www.deloitte.com/consumerbusiness
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