Stores 2008 Global Powers of Retailing - (Page 30) 2008 global powers of retailing maintained its leading position in the region. Edgars Stores, last year’s fifth-place retailer, did not make the Top 250 cut in 2006. Product sector analysis – Maslow’s hierarchy of needs plays out in retail Product sector profiles No. of Companies Top 250* 250 49 133 53 15 Average 2006 retail sales (US$mil) $12,985 $6,763 $16,472 $9,885 $13,352 Average No. of countries, 2006 6.2 8.1 4.7 8.4 5.5 Average sales growth and profitability by product sector 15% 12% 9.2% 9.1% 8.5% 8.1% 9.0% 14.5% 11.4% 10.2% Fashion Goods Fast-Moving Consumer Goods* Hardlines & Leisure Goods* 4.6% 9.9% 9% 6% 3% 0% 5.2% 5.2% 3.6% Diversified 2.8% 3.2% ** Average number of countries excludes Dell, Alticor (Amway), Avon, and AAFES, whose global or near-global coverage would skew the average Source: published company data and Planet Retail Top 250 Fashion Goods Fast-Moving Consumer Goods Hardlines & Leisure Goods Diversified CAGR* 2001-2006 2006 Retail Sales Growth 2006 Net Profit Margin Everyone needs to eat. Thus, retailers of food and other fast-moving consumer goods are by far the largest, with average 2006 sales of $16.5 billion. These companies are not only large, they are also lean. This sector’s 2006 net profit margin averaged just 2.8%. Supermarkets, drug stores, and other sellers of fast-moving consumer goods continue to be the predominant operational formats among the Top 250 retailers. However, as the basic need for food and shelter becomes increasingly satisfied around the world, consumer spending is 98 turning more toward self-esteem and 88 self-actualization. 73 63 53 49 46 *CAGR = Compound Annual Growth Rate in retail rales Source: published company data and Planet Retail Retail formats operated by top 250 retailers Supermarket Other Specialty Hypermarket/Supercenter/Superstore Convenience/Forecourt Store Department Store Apparel/Footwear Specialty Discount Store Drug Store/Pharmacy Electronics Specialty Home Improvement Cash & Carry/Warehouse Club Non-Store Discount Department Store 0 Source: published company data and Planet Retail 32 37 34 24 34 11 20 40 60 80 100 Top 250 2006 This is borne out by the number of Top 250 retailers that operate various format types. For example, in 2006, 49 companies operated apparel and/or footwear specialty stores. This is up from 47 and 40 in the past two Global Powers of Retailing studies. The number of retailers that operate consumer electronics stores has increased to 37 from 36 in 2005 and 34 in 2004. “Other specialty” retailers (including those specializing in sporting goods, furniture and home décor, toys and hobby goods, G30 STORES / January 2008 www.deloitte.com/consumerbusiness http://www.deloitte.com/consumerbusiness
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