STORES Global Powers of Retailing 2009 - (Page 36) 2009 global powers of retailing Over the 2002-2007 period, the 50 fastest-growing retailers among the Top 250 saw their sales climb at a composite compound annual rate of 28.7%, 3.8 times faster than the rate for the entire group. Sales turned into profits at a higher rate as well. The composite net profit margin for the Fastest 50 was 4.5% in 2007, versus 3.7% for the Top 250. Companies from all five regions and 21 countries are among the 50 fastest-growing retailers. Not surprisingly, developing countries, including China, Russia, South Korea and Brazil, are well represented on this list. As would also be expected, particularly in emerging markets, the majority of these companies are involved in the food sector, with many operating supermarkets and convenience stores. the importance of food safety in the global supply chain. Diversified retailers, which are also heavily involved in the food business, show the second-highest level of CSR reporting, followed very closely by the fashion retailers. Retailers CSR information was then studied to determine if three specific areas of interest were addressed. The environment/ sustainability was the most widely covered issue, with 88.4% of the CSR retailers reporting on their efforts in this area. Next were social/ economic issues such as fair trade, working conditions and other human rights issues. Two-thirds (66.5%) of retailers covered one or more of these topics. Product safety/quality issues were discussed by 55.5% of the retailers. Corporate Social Responsibility in Retailing This year, for the first time, Global Powers of Retailing reports on the extent to which Corporate Social Responsibility (CSR) is being addressed by the world’s largest retailers/in the retailing industry. Each company’s corporate website was examined to see if it contained a CSR or similarly named section, or if the retailer had published a 2007 CSR report or sustainability audit. If not, the company’s annual report (if available) was reviewed to determine if CSR issues were prominently addressed. 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 2007 (encompasses fiscal years ended through June 2008). 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 public-domain sources were used, including trade journal estimates, industry analyst reports, and various business information databases. Much of the data for non-U.S. food retailers were provided by 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. Corporate Social Responsibility in Retailing by Region and Sector Sector Top 250 Africa/Middle East Asia/Pacific Europe Latin America North America Fashion Goods Fast-Moving Consumer Goods Hardlines & Leisure Goods Diversified Source: Company websites and annual reports % of Companies Reporting on CSR Issues 66.1% 83.3 66.7 77.8 50.0 53.1 63.0 72.3 52.7 63.2 Overall, two-thirds of the Top 250 addressed CSR issues in one or more of these ways. By region, Africa/Middle East led with five of its six Top 250 representatives reporting on CSR issues. Over three-quarters of the European retailers had a CSR agenda. Only half of Latin American and North American retailers addressed this important topic. Looking at the results by major product sector reveals that retailers of food and other fast-moving consumer goods are the most focused on social responsibility and sustainability. This is not surprising given G3 STORES / January 2009 www.deloitte.com/consumerbusiness http://www.planetretail.net http://www.planetretail.net http://www.deloitte.com/consumerbusiness
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