STORES Global Powers of Retailing 2009 - (Page 29) 2009 global powers of retailing Sales growth and profitability by region/country 18.8% 20.0% 18.0% the average for the Top 250 as a whole, with the exception of the traditionally low-margin German retailers. Sales growth of the German retailers also was sub-par, hurt in part by the hefty three percentage point increase in the VAT that took effect on January 1, 2007 and hammered consumer spending. With economic troubles piling up, North American retailers began to feel the pinch in 2007. Sales growth slowed compared with the longer-term trend. As a group, profitability was on a par with the Top 250 composite net profit margin. 13.9% 12.0% 7.3% 7.6% 6.3% 7.1% 6.8% 6.9% 7.2% 7.0% 8.3% 8.0% 6.0% 4.0% 2.0% 0.0% 6.6% 6.6% 8.2% 10.0% 9.4% 11.4% 14.0% 13.5% 16.0% 18.3% 4.7% 4.1% 4.2% 5.3% 3.7% 3.8% 5.3% Top 10 Retailers by Region Nine of the top 10 European retailers remained the same as in 2006. ITM (Intermarché) seized the #10 spot, replacing Ahold, which has been falling in the ranks since 2002. Continued divestments by Ahold, including the sale of Tops Markets in the U.S., dropped the company to 11th place. While the top seven European companies remained in the same order as in 2006, Leclerc climbed to the #8 spot ahead of Edeka. As in the past, all of the top 10 North American retailers are U.S. companies. The only change from 2006 is the decline of Sears Holdings, which fell from 6th to 7th. The beleaguered chain changed positions with Walgreens, one of the fastest growing retailers in the U.S. with 2007 sales growth of 13.4%. Despite the Home Depot’s sales decline in 2007, the company remained the second largest North American retailer. However, its lead over #3 ranked Kroger has been cut almost in half. CVS, renamed CVS Caremark following the March 2007 merger with Caremark Rx, a leading pharmaceutical services company, remained in ninth place. However, the company’s August 2008 acquisition of Longs Drug Stores will propel it up the chart in fiscal 2008. Japan is losing its dominance in the Asia/Pacific region. Seven & I Holdings remains in first place among the Asia/Pacific region’s top 10 retailers. However, it is one of only three companies representing Japan, down from five in 2006 and seven in 2005. Despite Wesfarmers’ 3.6% 3.3% 2.9% 2.4% 3.1% 3.5% 1.8% Latin America Top 250 UK North America Europe France Japan Asia/Pacific Africa/Middle East Germany 2002-2007 Composite CAGR* 2007 Composite Retail Sales Growth 2007 Composite Net Profit Margin Results reflect Top 250 companies headquartered in each region/country * Compound annual growth rate in retail sales. Source: published company data and Planet Retail Although the European retailers did not enjoy above-average growth in 2007 compared with the Top 250 as a whole, they edged out their American counterparts with composite sales growth of 6.8% compared with 6.6% for the U.S. retailers. Over the longer period, however, they have fared considerably worse, with composite compound annual sales growth of just 4.7% from 2002 to 2007. This compares unfavorably with the U.S. companies at 8.2%, as well as the entire group at 7.3%. Profitability, however, was above Top 10 North American retailers, 2007 N. America rank 1 2 3 4 5 6 7 8 9 10 Source: published company data and Planet Retail www.deloitte.com/consumerbusiness STORES / January 2009 G29 Top 250 rank 1 5 6 8 9 11 13 15 17 20 Company Wal-Mart Home Depot Kroger Target Costco Walgreens Sears Holdings Lowe’s CVS Caremark Safeway US 3.6% Retail sales (U.S.$ billions) $374.6 77.3 70.2 63.4 63.1 53.8 50.7 48.3 45.1 42.3 Country of origin U.S. U.S. U.S. U.S. U.S. U.S. U.S. U.S. U.S. U.S. http://www.deloitte.com/consumerbusiness
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