Stores 2008 Global Powers of Retailing - (Page 36) 2008 global powers of retailing Globalization pays off Over the longer term, retailers operating in more countries have grown sales nearly two percentage points faster than retailers operating in only one or two countries. Although this did not hold true in 2006, when retailers that stayed closer to home outpaced their more globally minded peers, profitability for the global retailers was considerably higher. Retailers with operations in 10+ countries posted an average net profit margin of 4.7% compared with. 3.1% for those operating in only one or two countries. Planet Retail. Planet Retail, a leading provider of online retail intelligence, offers industry news, analysis, and digital media to decision-makers across all sectors. Covering over 1,800 grocery retailers and 4,000 banner operations in over 130 countries, Planet Retail has offices in London, Frankfurt and Tokyo. For more information please visit www.planetretail.net. Group Sales reflect the consolidated net sales of a retailer’s parent company, whether or not that company itself is primarily a retailer. Similarly, the income/loss figure also reflects the results of the parent company organization. For retailers that are part of a larger conglomerate, Retail Sales reflect only the retail portion of the company’s consolidated net sales. Retail Sales exclude separate food service/restaurant operations and wholesale or other business-to-business revenue (except where such sales are made from retail stores) where it was possible to break them out. Sales figures do not include the retail banner sales of franchised, licensed, or independent cooperative member stores. They do include royalties and franchising or licensing fees. Group Sales include wholesale sales to such networked operations – both member stores and other supplied stores. Sales figures do not include operations in which the company has only a minority interest. In order to provide a common base from which to rank companies by their Retail Sales results, fiscal year 2006 sales (and profits) for non-US companies were converted to US dollars. Exchange rates, therefore, have an impact on the results. OANDA.com is the source for the exchange rates. The average daily exchange rate corresponding to each company’s fiscal year was used to convert that company’s results to US dollars. The 2001-2006 compound annual growth rate (CAGR) for Retail Sales, however, was calculated in the company’s local currency. Average sales growth and profitability by level of globalization 12% 10% 8.7% 9.8% 10.6% 8% 6% 7.5% 4.7% 4% 2% 0% 3.1% Companies operating in 1-2 countries Companies operating in 10+ countries CAGR* 2001-2006 2006 Retail Sales Growth 2006 Net Profit Margin *CAGR = Compound Annual Growth Rate in retail sales Source: published company data and Planet Retail Study methodology and data sources Companies are included in the Top 250 Global Powers of Retailing list based on their non-auto retail sales for fiscal year 2006 (encompasses fiscal years ended through June 2007). A number of sources were consulted to develop the Top 250 list. The principal data sources for financial and other company information were annual reports, SEC filings, and information found in companies’ press releases, fact sheets, or websites. If company-issued information was not available, other publicdomain sources were used, including trade journal estimates, industry analyst reports, and various business information databases. Data for non-US food retailers were provided by G36 STORES / January 2008 www.deloitte.com/consumerbusiness http://www.planetretail.net http://OANDA.com http://www.deloitte.com/consumerbusiness
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