STORES Global Powers of Retailing 2009 - (Page 28) 2009 global powers of retailing U.S. share of Top 250 shrinks Share of top 250 retailers by region/country, 2007 Canada 4.4% Africa/Middle East 2.4% Japan 9.6% Other Asia/Pacific 6.0% France 5.2% Germany 8.4% UK 8.4% US 34.8% The U.S. lost ground in 2007 as a share of the Top 250. The number of U.S. companies dropped from 93 in both 2006 and 2005 to 87 in 2007. As a result, its share of Top 250 companies declined to 34.8% from 37.2%. U.S. companies accounted for 42.1% of Top 250 sales in 2007, down from 45.5% the year before. While some of this was due to the continuing decline of the U.S. dollar relative to many other currencies, U.S. retailers also experienced weaker growth in 2007 relative to their counterparts around the globe, particularly in the closing months of the year. Aggregate retail sales for the U.S. companies were up 6.6% for the year, compared with 7.6% for the Top 250 as a whole. The 24 companies based in Japan are the second largest group by country of origin. Although Japanese retailers remain major global players, Japan continued to lose ground in 2007. The country represented 9.6% of Top 250 companies and 6.1% of sales. This is down from 16% of companies and 8.5% of sales just four years ago. This trend will likely persist as major Japanese retailers continue to merge operations in a bid to survive an increasingly tough business environment, especially in the department store sector. Merger activity has already removed several Japanese companies from the Top 250 as separate entities. Despite this, however, the country’s decline in the rankings can be attributed primarily to weak (or negative) growth for a number of the Japanese retailers. As the U.S. and Japan’s share of the Top 250 declined, retailers from other Asia/Pacific countries and Europe made up the difference. The 99 European retailers (up eight from 2006) represent 39.6% of the total, passing the U.S. companies’ share for the first time since the Global Powers of Retailing began tracking this information. A combined Europe captured 42.1% of total sales, the same as the U.S. companies. The major European economic powers – Germany, UK and France – accounted for just over half of Europe’s Top 250 country count, but more than three-quarters of its aggregate sales volume, attesting to the large size of these retailers. Other Europe 17.6% Latin America 3.2% Source: published company data and Planet Retail Share of top 250 sales by region/country, 2007 Africa/Middle East Canada 0.8% Other 2.7% Asia/Pacific 5.0% Japan 6.1% France 10.0% US 42.1% Germany 11.7% UK 8.5% Other Europe 11.9% Latin America 1.2% Source: published company data and Planet Retail Strong domestic retailers in emerging markets expand The emerging markets of Latin America, Asia/Pacific and Africa continue to experience sales growth well above the Top 250 average. Stronger domestic retailers in these markets are expanding rapidly in an effort to impede foreign competition. The high composite growth rate for retailers in the Asia/Pacific region reflects rapid growth of Chinese, Korean and Taiwanese companies. In Australia, Wesfarmers’ sales soared with the acquisition of Coles in November 2007. Particularly robust growth was enjoyed by five of the six retailers that comprise the Africa/Middle East region, resulting in the highest composite growth rate among all regions. In addition to rapid sales growth, Latin American retailers were the most profitable, led by department store retailers Falabella and Liverpool. For purposes of geographical analysis, companies are assigned to a region based on their headquarters location, which may not always coincide with where they derive the majority of their sales. Although many companies derive sales from outside their region, 100 percent of each company’s sales are accounted for in that company’s region. G2 STORES / January 2009 www.deloitte.com/consumerbusiness http://www.deloitte.com/consumerbusiness
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.