Chinese Retailer Ranks Among Top 10 Retailers Globally
The Top 250 global retailers generated an aggregated revenue of $5.11 trillion in the fiscal year of 2020 ending within the 12 months from July 1, 2020 to June 30, 2021, representing composite growth of 5.2%, according to Global Powers of Retailing 2022, a report published on Monday by Deloitte, one of the Big Four accounting firms.
The world’s Top 10 retailers hold a 34.6% share of the total retail revenue of the Top 250, compared to 32.7% in the previous year. Retail revenue growth by the Top 10 in FY2020 jumped by 8 percentage points from the previous year, to 12.4%.
Deloitte said that the Top 10 list continues to be dominated by companies headquartered in the United States. FY2020 also saw a Chinese retailer – JD.com – enter the Top 10 list for the first time. Fourteen Chinese enterprises, including Suning.com, Vipshop Holdings and Yonghui Superstores, were also shortlisted for the Top 250.
According to the report, the minimum revenue for a company to enter the Top 250 rankings is $4.1 billion, up from $4.0 billion in the previous year, with the average company size increasing from $19.4 billion to $20.4 billion. Europe has the highest number of Top 250 retailers, with 90 companies based in the region while North America has the highest share of Top 250 retail revenue at 48.4%.
The largest product sector continues to be the fast-moving consumer goods (products sold quickly and at relatively low cost), representing 66.4% of the retail revenue of the top 250 companies. Hardlines (such as appliances) and leisure goods follow with 21.0% share of top 250 revenue and recorded the highest year-on-year retail revenue growth rate of 14.5%.
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“E-commerce continues to be a driver for retailers, with consumers still opting to shop from home due to the pandemic. The importance of online capabilities was a contributing factor to this year’s first-ever Chinese top 10 retailer, which was also listed as one of the year’s 10 fastest-growing retailers,” says Tianbing Zhang, Deloitte APAC Consumer Product and Retail Sector Leader.