DTTL CB Gpr14stores

Global Powers of Retailing 2014
Retail Beyond begins

Its all about timing.
2014 Deloitte LLP. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
This report looks at ten markets for retailers to consider from the
perspective of timing which are of near-term interest? Which ones
are likelier to offer long-term opportunities?
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Contents
Global economic outlook G4
Retail Beyond G9
Top 250 global retailers 2012 G12
Global Powers of Retailing Top 250 highlights G19
Global Powers of Retailing geographical analysis G21
Global Powers of Retailing product sector analysis G23
Emerging market tailwinds, acquisitions and trends
power Fastest 50 G25
The top 50 e-retailers G27
Q ratio analysis for Global Powers G31
Study methodology and data sources G33
Contacts G34
www.deloitte.com/consumerbusiness G4
Global economic outlook
Welcome to the 17th annual Global Powers of Retailing report, produced by Deloitte
Touche Tohmatsu Limited (DTTL) in conjunction with STORES Media. This report
identies the 250 largest retailers around the world based on publicly available data for
scal 2012 (encompassing companies scal years ended through June 2013) and analyzes
their performance based on geographic region, product sector, e-commerce activity and
other factors.

This years report focuses on the theme of Retail Beyondthe consumer revolution
driven by converging technologies that is dramatically changing the industry. It also
provides a look at the worlds 50 largest e-retailers, a view on the global economy, and
an analysis of retail industry market capitalization.
Changes in the political environment can wreak havoc with the
economic outlook, and as of this writing, there are major political
uncertainties in the major markets. These include: whether the U.S.
Congress will move toward more or less scal restraint; when and
how the U.S. Federal Reserve will shift policy; whether and how the
Eurozone will implement a banking union; whether the European
Central Bank (ECB) will move toward a more aggressive monetary
policy; whether Japans government will endorse a radical program
of deregulation; and whether Chinas government will do likewise.
What follows is meant to serve as a baseline view of the economic
outlook for the major markets and the potential impact on retailers
and their suppliers. It should be noted that unexpected political
decisionsby leaders or voterscould relegate such outlooks to
the rubbish bin. Still, we hope that what follows offers a useful
road map.
China
The Chinese economy grew at a rate of 7.8 percent in 2012, the
slowest since 1999, and it is not likely to bounce back to the
breakneck pace of the past. Rather, growth in the neighborhood of
7 to 8 percent appears to be the best that can be expected going
forward. Indeed, the government says that growth in that range
is desirable and that it will not take steps to stimulate faster growth.
China has gone from being a poor country to being a more
middle-income country. At its current level of income, growth of
7 percent would be considered good. The real question is whether,
given some of Chinas challenges, growth of even 7 percent can
be attained.
There are many problems, foremost of which is a huge level of debt,
much of it accumulated through the so-called shadow banking
system. Chinese authorities are concerned that rapid credit growth
is not translating into economic growth, and that excessive credit
growth is creating risks to the economy. For example, in the rst
quarter of 2013, credit was up 58 percent but real GDP growth
was a very modest 7.7 percent. The authorities are worried that too
much credit is owing into things that contribute nothing to growth,
including considerable speculative activity. As such, the central bank
has taken steps to cool credit markets. This includes cracking down
on illegal capital inows, tightening conditions in the mortgage
market and providing closer scrutiny of the shadow banking system.
The shadow banking system has developed largely because of
restrictions on commercial banks, which remain state-owned and
face interest rate regulation. That is, the rate they pay depositors is
capped, providing the banks with a predictable and favorable prot
margin. Their borrowers are mainly State-Owned Enterprises (SOEs)
and local governments that get cheap credit and, as a consequence,
invest excessivelyoften at the urging of the central government.
Everyone else, including private sector businesses and households,
lacks substantial access to bank credit.
In order to prot from the excess demand for credit, banks have
bundled loans into wealth management products (WMPs) that
are essentially securitized assets. They sell these WMPs in order
to shift assets off the books and raise funds that can be loaned at
higher interest rates through off-balance-sheet vehicles known as
trust companies. The result has been an explosion of credit outside
normal banking channels and the purview of regulators. Moreover,
this has enabled the banks to maintain a very low non-performing
loan ratio even if many of the loans they have madeespecially to
local governmentshave gone bad.
The WMPs are like bonds in the sense that they have a maturity
dateusually in less than three years, sometimes as little as six
months. When they come due, banks must pay back the investors.
If the loans behind the WMP have failed, the banks must somehow
raise funds to service the WMPs. This has generally meant issuing
new WMPs, often at even higher interest rates. To grease this
market, much interbank lending has been taking place.
WMPs are not the only part of the unsupervised shadow banking
system, but they are the most noteworthy. The WMPs tend to be
bought by wealthy individuals who want a better return than can
be obtained through banks. In any event, the whole system exists
because of interest rate regulation. Absent this, there would be little
need for a system outside normal banking channels.
There are two problems with this system. First, as banks accumulate
troubled assets, the risk exists that they will need to be bailed out
by the government in order to maintain solvency. This, in turn, could
lead to slower economic growth as banks cut back on lending. The
second, longer-term problem is that China massively invests in things
that dont contribute to increased future growth.
What is needed is a transition from investment-led growth toward
consumer-led growth, which would be more sustainable and more
benecial to retailers. The government seems to recognize the
problem and intends to implement reforms aimed at suppressing
investment and boosting consumer spending; the problem is that
we do not yet know the details or the speed at which reforms
will take place. Thus there is uncertainty about the future of the
consumer environment in China.
United States
The U.S. economy has held up pretty well given some of the
challenges it has faced. In 2012, the economy got hit with a
recession in Europe and a slowdown in China, both of which
substantially impeded U.S. growth. In 2013, a big tax increase
combined with sizable cuts in government spending had a negative
impact on growth once again. Going forward, there are some
positive factors. These include recoveries in Europe and Japan,
stabilization of growth in China and the likelihood that scal policy
will not be any tighter. Thus, all other things being equal, growth in
2014 should be better than in 2013.
There are a number of positive signals already: Rising home prices
and increased housing market activity, indications of improvement
in credit market conditions; rising activity in the manufacturing
sector; and continued growth of consumer spending. The latter
reects rising real incomes (especially as ination remains so low),
improvements in the labor market, declining consumer debt and
debt service payments and rising wealth through the equity and
property markets.
Still, there are risks, and the biggest concerns monetary policy.
For the past several years, the Federal Reserve has engaged in three
rounds of quantitative easing (QE)massive purchases of assets like
government bonds and mortgage-backed securities. The goal is to
suppress interest rates, boost asset prices, suppress the dollar and
create a bit of ination.
The latest round of QE never had a maturity date. Therefore,
investors were never certain when the policy would end. Thus
when the Fed discussed in May 2013 the possibility of tapering
quantitative easing, nancial markets reacted violently. Bond yields
increased, mortgage interest rates increased and emerging market
currencies fell rapidly.
Then in September, the Fed said it would wait a bit longer before
shifting policyas of this writing, it has not yet acted. Still, it is
expected that the Fed will change policy sometime in 2014. Over
time, the Fed will ultimately stop purchasing assets; as this takes
place, it is likely that interest rates will rise. If the Fed does this when
the economy is already strengthening, then the shift in policy should
not do too much damage. Moreover, with ination low and likely to
remain low, the Fed neednt hurry. The challenge will be to get the
timing right. For now, this remains the biggest uncertainty facing
the U.S. economy. Still, it is reasonably likely that Fed policy will not
have a negative impact on growth.
Another risk concerns scal policy. Although the budget wars
of 2013 are over, there remains risk that the Congress will fail to
agree on budget priorities going forward. Still, given the politics
of the situation, another shutdown seems unlikely, and a failure to
service government debt seems even less likely. The real question
is whether a meaningful budget agreement can be reached. If it
happens, it could have a positive impact on business condence
and, consequently, investment.
On the retail front, a positive economic outlook likely means a good
retail environment. While it is not likely that there will be a return to
the rapid growth of the previous decade, moderate growth seems
likelyespecially given the considerable pent-up demand. Notably,
household formation has been slow due to high unemployment:
As the economy recovers, young adults will form new households.
This will stimulate consumer spending on products for the home.
Of course, the rising income inequality in the U.S. means that a
disproportionate share of the growth of spending will come from
upper-income households. That suggests opportunities as well as
challenges for retailers.
Europe
After a long recession, the Eurozone is growing, albeit slowly. In
addition, the British economy managed to avoid another downturn
and is now starting to take off. This is good news for retailers who
have been through a rough time in Europe. In the Eurozone, much
of the growth is due to expansion of exports rather than stronger
consumer spending. Investment spending is modestly rebounding,
but has a long way to go; credit markets remain stied despite
a more aggressive monetary policy on the part of the European
Central Bank. On the other hand, there are a number of positive
factors that are beginning to drive economic growth and will be
helpful going forward.
The most recent Eurozone improvement is the result of export
growth to non-Eurozone countries. This reects a weaker euro,
wage restraint, productivity gains and some labor market reforms.
Still, balanced growth needs a reversal of the sharp drop in
investment that has been ongoing since the outbreak of the crisis.
The slight increase in investment lately could be a rst signal that
European rms are more bullish regarding capital spending.
One major factor that supports increased investment activity is
that the euro crisis has been fading to the background. While there
were no major political decisions regarding the future shape of
the Eurozonenot least due to the German federal elections in
Septembervolatility has not re-emerged. The worst of the euro
crisis seems to be over. Whether this is a permanent phenomenon is
far from certain, and even less certain is whether the crisis is shifting
from acute to chronic. Nevertheless, the uncertainty that suppressed
Europes capital spending has been declining lately.
Another positive inuence on the Eurozone economy is a shift in scal
policy. For the past few years, European economies have been engaged
in draconian austerity, raising taxes and cutting spending with the goal
of scal probity. Although this policy has failed to achieve the desired
decit reduction, it has achieved suppression of growth. This is now
changing. The social cost of this policy has led governments, with the
tacit approval of the EU, to shift toward less austerity.
Europe continues to face various risks that could undermine growth,
however. First, capital ight from emerging markets following the
Federal Reserves discussion about shifting its monetary policy endangers
the stability of emerging markets, as well as their growth rates. Given
that emerging markets have become the main export engine for the
Eurozone, further instability could severely strain European exports.
Second, the recovery in Europe takes place against a background of
a relaxation of the euro crisis. As many of the reasons for the euro
crisis and the recession are not yet resolvedunstable banking
system, over-indebted states, the architecture of the Eurozone,
troubled credit markets in Southern Europeit is far from clear that
the euro crisis will not return. Indeed, borrowing costs in Southern
Europe remain relatively high due, in part, to such uncertainty.
And there are still political risk factors. The most important one
remains the high unemployment rates in Southern Europe, which
might result in political instability and dangers to the sustainability
of the Eurozone. For example, poor economic performance could
lead to the election of anti-European governments. In order to
substantially reduce unemployment, much higher growth rates
are needed. Complicating matters is the fact that Southern
European labor markets are highly regulated, so there is not a direct
relationship between growth and employment.
As for retailing, the economic outlook for Europe is not promising.
With slow growthand a disproportionate share of that growth
stemming from exportsthe outlook for retail spending is not
good. There are two potential bright spots, however. First, Germany
is probably going to have to shift toward more consumer-led
growth sometime in the future, as it is too dependent on exports of
capital goods to emerging markets, especially China. If China shifts
away from investment-led growth, Germany will need to offset this
loss by stimulating consumer demand. Second, the British economy
has seen unusual strength lately, including in consumer demand.
After several years of declining real wages and considerable pent-up
demand, Britons appear ready to spend.
Japan
Japan has embarked on a radically new economic policy, and not
a moment too soon. After two decades of sub-par growth and
declining prices, Japan found itself with a standard of living far
below what might have been. It also found itself laden with a high
level of government debt relative to GDP, an aging population and
increased competition in electronics and automobiles from such
countries as South Korea, Taiwan, China and the United States.
It became increasingly evident that something needed to be done.
Japan needed to stimulate growth to end years of deation, to boost
wealth in order to increase consumer spending and to deregulate
sclerotic domestic markets in order to boost productivity growth.
Since coming to ofce, Prime Minister Shinzo Abe has promoted a
three-pronged program designed to achieve these goals. Known
as Abenomics, the program involves scal stimulus, aggressive
monetary policy and a combination of freer trade and deregulation.
The monetary policy, which involves massive and unlimited
purchases of assets (quantitative easing) until ination of 2 percent is
achieved, has been implemented on a large scale. So far, this policy
has caused a sharp drop in the value of the yen, thereby boosting
export competitiveness. It has led to a sharp increase in equity
prices, thereby helping consumer spending, and it has begun the
process of ending deation. The latter is damaging because it leads
to high real interest rates, causes consumers to delay purchases and
makes life more onerous for debtorsincluding the government.
Overall, Abenomics has had a positive impact on business
condence. In terms of real impact, economic growth in the rst
two quarters of 2013 was strong. Specically, real GDP increased
at an annual rate of 3.8 percent in the rst quarter and 4.1 percent
in the second quarter. The strong growth was led by a boost to
business investment, itself the result of strong protability and
improved condence. Growth in the rst half of the year involved
strength in exports, investment and consumer spending, all
inuenced by Abenomics.
While the early indications are that Abenomics has been moderately
successful, longer-term success will depend on the degree to which
deregulation takes place. As of this writing, the details are not yet
known, nor do we know how difcult it will be to shepherd reforms
through the Parliament. The government has said, however, that
it will postpone labor market reforms. This does not bode well for
other difcult changes.
One initial problem with Abenomics is that, although prices have
begun to rise, wages have not. That could be a problem going
forward. As prices rise and wages stagnate, the real purchasing
power of consumers will decline. The government has urged
businesses to boost wages and is considering measures to stimulate
wage increases. Failure on this front could derail the initial success
of Abenomics.
Another uncertainty concerns the fact that, come April, the national
sales tax will be increased from 5 percent to 8 percent. This was
planned long ago and is intended to improve the sustainability of
Japans pension systemespecially given the rapid aging of the
population. The last time the tax was increased, consumers cut back
on spending and a recession ensued. Therefore, the government has
promised to provide considerable scal stimulus to offset the impact
of the tax increase. It remains uncertain as to whether this will
succeed. It is expected that consumer spending will spike just before
the tax increase and then rapidly decline immediately afterwards.
The retail outlook for Japan is good in the short run, but uncertain
in the longer term. Much will depend on the nature of the reforms
that the government ultimately enacts. Included in this could be
reform of Japans distribution sector. Such change could open the
door to more foreign investment in retailing and more efciency in
the industry.
Emerging markets

Brazil
Economic growth has decelerated considerably in Brazil. The
country has been beset with ination, currency depreciation,
some social unrest and business pessimism. The central bank has
tightened monetary policy in order to slow ination and resist
currency depreciation. Consequently, the short-term outlook is not
very good. In the longer term, Brazil has many favorable attributes
including good demographics, a likely dramatic increase in energy
production, increased foreign interest in the manufacturing sector
and increased exports of services. On the other hand, Brazil
continues to have a variety of challenges that require legislation,
including over-regulated labor markets, inadequate infrastructure
investment and trade restrictions.
As for the consumer market, Brazils retail industry has done well.
Unfortunately, there is now a very high level of consumer debt,
which bodes poorly for spending growth in the coming years. Thus,
the outlook is modest.
India
India had a few years of astronomical growth that turned out to be
unsustainable, leading to bottlenecks that created ination. Plus,
the growth was nanced by an accumulation of debt that cannot
be sustained. The central bank has tightened monetary policy in
order to quell ination and stabilize the currency. Meanwhile, the
government has failed to implement many of the reforms that
would boost productivity and unleash more investment and faster
growth. Such changes must await the next election, which will
take place in 2014. For now, India appears to be on a low growth
trajectory.
Russia
Over the past two decades, Russias economic performance was
usually correlated with the price of oil. That relationship has shifted,
however: Today, the price of oil is relatively high but growth is
slowing.
Evidently, Russia has some fundamental weakness. There has been
inadequate investment in energy, resulting in a decline in output.
There has been very modest investment in non-energy industries.
The population is declining, thus creating a labor shortage that has
resulted in higher wages and low unemployment.
While consumer spending has been strong, debt has increased,
thereby hurting potential growth. Ination remains too high and the
central bank has, therefore, not eased policy despite a slowdown in
growth. Moreover, the country faces growing competition in its core
energy export base. Thus, the economic outlook is modest at best.
Other markets
Many emerging markets have seen a deceleration of growth in the
past year.
Going forward, the emerging world is likely to have a year or two
of disappointing growth while imbalances are unwound, but the
longer-term outlook remains positive.
Indeed, for those emerging markets that did not accumulate too
much debt, the outlook is quite good. Among the more promising
markets are Colombia, Mexico, Philippines, Turkey and much of
sub-Saharan Africa. These countries and regions enjoy improved
governance, competitive industries and favorable demographics
and should experience strong growth in the coming decade. As this
happens, the number of people in the middle class will rise rapidly,
thus creating signicant new opportunities for the worlds leading
retailers.
Retail Beyond
It has become clear that the retail industry is in a period of
unprecedented disruption and change. The impact that mobile
network access is having on customers, markets, and businesses is
the most dramatic example. However, a broader set of technologies
are interacting with social and economic trends to create the future
of retail. The difcult question is how to usefully anticipate the
ways in which business models and markets might be affected by
such technologies. Granted, a relatively unknown technology could
emerge to have an impact. However, it is more likely that existing
technologiessome that have been around for decadeswill
be integrated in ways that unlock value for consumers and create
signicant competitive advantage.
The building blocks of the future
The technologies that we will consider have emerged in the last 10
to 100 years. We often think of them as new when theyre actually
quite mature and established: GPS, RFID, Digital Video, Biometrics,
Magnetic Resonance Imaging, DNA Sequencing, Robotics, Voice
Recognition, Wireless transmission, the Cloud, Smart Mobile Devices,
and others. While these technical building blocks are widely available
and well understood, the magic happens when they are combined
in surprising and unexpected ways that act as game changers.
Even older technologies like cameras and radio communication will
nd new life and applications when combined or modied with an
emerging technology that changes the potential applications and
uses of the old technology.
How convergence creates new markets and services
The recent integration of GPS and mobile phone technologies serves
as a useful illustration of how a convergence can create new markets
and services. GPS as a standalone capability is a phenomenon of
the 1980s when global positioning satellites were deployed and
activated to replace ground-based navigation systems. Mobile phone
technology was also developed in the early 1980s. Up until 1997 the
U.S. Federal Government used to degrade the accuracy of the Global
Positioning System for security reasons. When the random error was
turned off, GPS became accurate to within ve meters, thus creating
new market and service possibilities.
Since then, GPS has found its way into numerous devices including
mobile phones, tablets, computers, and cars. A large part of the planet
geography has been mapped and geo-referenced. As GPS became
a commonplace device capability it enabled a new set of high-value
services. This coming year revenues from mobile geo-positioning
services are predicted to exceed $12.8 billion! This location revolution is
affecting the retail experience, with customers now receiving location-
specic promotions and suggestions on their phones, while retailers
can easily count and identify the active mobile devices in their stores.
Waiting for RFID
The brilliant promise of RFID has existed for 20 years,
and the technology itself has been around for 60 years.
Yet we have not yet realized its potential impact and value.
RFID collects and stores the energy from radio waves and then
transmits back identifying information for the tagged object.
The key feature is that is has no required power source to remain
viable for the useful life of the object. For the manufacturer and
the retailer its an electronic serial number or stock keeping unit,
and potentially a network address for any item related information.
We have long since expected RFID to replace price tags and
shipping labels with a single permanent and invisible identier,
but unit cost has always blocked RFID from realizing its potential.
The rst step is to look beyond the cost to the value creation and
the aggregated marginal cost savings opportunities throughout the
supply chain and the life cycle of the product:
RFID can enable an automated transaction without the cost of
checkout.
An RFID can act as permanent security tag for the product.
It can also be a web address for any product information; a
virtual label, assembly instructions, reviews, repair, replacement,
recycling, etc.
Manufacturers and retailers have started to adopt RFID in some
product categories and applications. A key to RFID value and
adoption is when it is integrated with other technologies. What
will be possible when RFID readers are part of every mobile phone?
Whats possible when there is an address in the cloud for every
RFID and virtual content related to the merchandise available at the
point of purchase to the consumer? Suppose that a GPS time and
position record was generated when any item was scanned.
Any item could be tracked in the supply chain and throughout its
life cycle.
The potential to leverage inventory from throughout the supply
chain directly against customer demand could improve asset
efciency and margins.
Over
Willing to
share their
location
50%
Lunch
more
revenue
2.68x
more likely
to interact
with an ad
40%
Sources: JiWire, 12 May 2010, TGDaily, 18 August 2010 MediaPost.com,
29 March 2011
i (1) Wauters, Robert. Mobile Location-Based Services Could Rake In $12.7
Billion By 2014: Report. TechCrunch. February 23, 2010. http://techcrunch.
com/2010/02/23/location-based-services-revenue/. March 30, 2011.
Past experience suggests that RFID is reaching an important threshold
and will nally become a transformative technology that will completely
change retail operations from the supply chain to the customer.
3D Printing
Technologies like 3D printing will even more dramatically
change the nature of the supply chain. We dont expect
customers to be making all their own products with their home 3D
printers, but the idea of printing a product from a database or your
own design on a remote printer is very real. The potential impact of
3D printing on warehoused inventory levels and the global supply
chain is potentially disruptive.
3D printing, also known as Additive Manufacturing, is a technique
in which products are built layer-by-layer rather than subtracting
material from a larger piece. The breakthrough opportunity is that
3D printers allow retailers to reduce their investments in nished
goods and to offer a far broader array of customized products. If 3D
printers are networked to consumers and to a database of design
specications, this would open a number of possibilities:
This could change the way that many products are sourced and
distributed, particularly hard to stock items like spare parts.
Products could be produced and customized to order and
inventories could be reduced to zero, transforming the supply chain.
Product development and prototyping could be vastly accelerated,
changing the lead time for product development and speed to market.
Customization and personalization could become the norm for
many products. Garments could be manufactured to the exact t
or the stored t for a consumer.
Fast fashion could become even faster! Viral brands and trends could
become commonplace, and anyone could become a designer.

MRI
Magnetic Resonance Imaging (MRI) technology enables
the user to see the molecular composition of any object by
causing each material to resonate at its natural frequency.
This creates a composition prole of any object.
It may not seem related to the retail industry, but it could become far
more useful when it is combined with other technologies. Currently
MRI is being used with 3D printing to scan the joint space and surfaces
so that a 3D printer can produce a perfectly tting replacement
limb. Could it also be used to custom t and manufacture shoes and
apparel? If the MRI scanning of products is integrated with RFID
identication of products, it could be possible to use RFID to validate
the origin and stated contents and then inspect and validate the
composition with the MRI scanner. This could improve product and
food supply integrity, help validate the contents of a drug prescription,
nd contaminants in food products, or to authenticate and quality
control drug prescriptions. Once again, convergence unlocks a range
of possible capabilities that change the game.
Time to reinvent
The impending changes from these technological convergences are
massive and disruptive, and theyre coming very, very fast. People,
information, and objects will be continually networked and linked.
Spontaneous mobile access to relevant information will more fully
integrate the physical and virtual retail shopping experiences.
This is likely to make for a reinvented and more responsive retail
marketplace in which:
Retailers and manufacturers identify and track products through
their entire life cycle.
Customers use searchable information about a product and its
alternatives at the point of purchase.
Customers collaborate directly on design with their retailers
and brands.
Consumer businesses crowd source data from customers and users.
New mobile forms of payment and digital currencies and
contracts become the norm.
We recycle, reuse, lend, share, and resell nearly everything.
Retail Beyond will be very different from retail today. Nearly every
component of the customer experience will be altered and business
models will be challenged to adapt.
Yesterday Today Tomorrow Beyond
Awareness RFID
Digital assistant
3D printing
Biometrics
Integrated
Evaluate & select
Shopping experience
Point of sale
Service & advocacy
Radio Television Social media QR barcode
Print media Billboards Digital marketing
In-store promotions
Trial & error On-line comparison Omni-channel
Media inserts & reviews Social media Social collaboration
Samples
Cash register Wireless card Phone transfer Near eld comms
Card EFT E-wallets Mobile POS Cash-less
Printed coupon
Community word of mouth Social media Personalised service
Media reviews Ingrated channels
In-store service Call centre service Review blogs Multi-return points
Digital voucher Integrated POS device
Brick & mortar E-commerce Strategic Small format
Large format Click & collect Pop-up store Specialised
Pure-play Integrated channels
Experience stores Augmented reality
Targeted promotions Near eld
3D
3D
The challenges
While these possibilities are exciting, there are challenges that
accompany them. Primary among these is the overwhelming
amount of unstructured data to be managed and organized for
use, and, along with it, the potential for such information to be
misused. We will also need to reinvent how we humans process
and use data.
There will be continuing displacement and disruption of
businesses, markets and industries.
There will be a huge talent gap.
There will be lots of failures and false starts.

Given the dramatic changes that are afoot, retailers will need to
re-think their business approaches.
The store experience transformed
What might the shopping experience look like in a decade
if some of these technologies come together? Here is one
possible scenario:
You enter your favorite retailer. The store electronic
monitoring system recognizes you by the devices you
carry and the RF tags on your garments and triggers
your personal digital shopping assistant.
The digital assistant suggests the look for your new
outt by accessing your wardrobe from past purchases
and needs from recent searches.
The retailers 3D printer begins production of your
new outt by leveraging MRI scanned custom t
requirements.
You donate or recycle part of your current wardrobe to
offset the cost of the new outt.
Finally, you pay with a secure biometric authorization,
no cards or devices required.
The startling reality is that Retail Beyond is possible today.
Its a matter of assembling and integrating these technical
capabilities into the next generation of retail experience.
Conventional Business
Approaches
Radio
Unconventional Approaches to
Address Change
Hierarchical organizational
structures discourage
creativity.
Cultures dont reward
risk-taking, e.g., throwing
out the current business
model.
Capital investment models
reward incremental
improvement.
Legacy systems cant keep
up when global computing
power is in the pocket of
the consumer.
Established infrastructure
and business models
block innovation.
More dynamic, entrepreneurial
organization structure
Flexible teaming
and collaboration
Rich value and contribution-based
incentives
Fast failure, coupled with rapid
learning strategies
Being responsive
and adaptive
Marketplaces for crowdsourcing and
sharing ideas
Listening and engaging with customers
and employees
Innovation with focus
and purpose
The technologies that ultimately convergewhether the ones
discussed here or otherswill bring about a single, continuous,
connected customer experience. Conventional approaches to
business planning and strategy will leave many businesses stranded
at a competitive disadvantage. The pace of change is accelerating.
Market transparency and massive amounts of data coupled with
ubiquitous access to information make these changes even more
possible in the near future. More importantly, they ip the economy
from being driven by the supply side to being demand-driven by the
consumer. Addressing these seismic economic and technological
changes will require retailers to transform what they do.
Revenue and net income for the parent company or
group may include results from non-retail operations
Compound annual growth rate
e = estimate
g = gross turnover as reported by company
n/a = not available
ne = not in existence (created by merger or divestiture)
* Revenue reects wholesale sales
** Revenue includes wholesale and retail sales
Top 250 global retailers 2012
Retail
revenue
rank
(FY12) Name of company
Country
of origin
2012
retail
revenue
(US$m)
2012
parent
company/
group
revenue
(US$m)
2012
parent
company/
group
net income
(US$m) Dominant operational format 2012
#
countries
of
operation
2012
2007-
2012
retail
revenue
CAGR
1 Wal-Mart Stores, Inc. U.S. 469,162 469,162 17,756 Hypermarket/Supercenter/Superstore 28 4.4%
2 Tesco PLC U.K. 101,269 102,889 190 Hypermarket/Supercenter/Superstore 13 6.2%
3 Costco Wholesale Corporation U.S. 99,137 99,137 1,767 Cash & Carry/Warehouse Club 9 9.0%
4 Carrefour S.A. France 98,757 100,906 1,692 Hypermarket/Supercenter/Superstore 31 -1.3%
5 The Kroger Co. U.S. 96,751 96,751 1,508 Supermarket 1 6.6%
6 Schwarz Unternehmens Treuhand KG Germany 87,236
e
87,236
e
n/a Discount Store 26 6.6%
7 Metro AG Germany 85,832 85,832 130 Cash & Carry/Warehouse Club 32 0.7%
8 The Home Depot, Inc. U.S. 74,754 74,754 4,535 Home Improvement 5 -0.7%
9 Aldi Einkauf GmbH & Co. oHG Germany 73,035
e
73,035
e
n/a Discount Store 17 6.0%
10 Target Corporation U.S. 71,960 73,301 2,999 Discount Department Store 1 3.2%
11 Walgreen Co. U.S. 71,633 71,633 2,127 Drug Store/Pharmacy 2 5.9%
12 CVS Caremark Corp. U.S. 63,654 123,133 3,875 Drug Store/Pharmacy 2 7.1%
13 Aeon Co., Ltd. Japan 63,100
**
69,588
**
1,331 Hypermarket/Supercenter/Superstore 10 1.7%
14 Groupe Auchan SA France 59,041 60,357 925 Hypermarket/Supercenter/Superstore 13 5.0%
15 Woolworths Limited Australia 58,602 60,273 2,326 Supermarket 2 4.6%
16 Amazon.com, Inc. U.S. 58,570 61,093 -39 Non-Store 11 32.3%
17 Seven & i Holdings Co., Ltd. Japan 58,329
**
61,098
**
1,859 Hypermarket/Supercenter/Superstore 18 -2.9%
18 Edeka Zentrale AG & Co. KG Germany 55,944
**
57,616
**
n/a Supermarket 1 5.9%
19 Wesfarmers Limited Australia 54,231 61,462 2,323 Supermarket 2 13.8%
20 Casino Guichard-Perrachon S.A. France 53,375
**
53,978
**
1,972 Hypermarket/Supercenter/Superstore 26 11.1%
21 Lowes Companies, Inc. U.S. 50,521 50,521 1,959 Home Improvement 4 0.9%
22 Rewe Combine Germany 48,984
**
53,486
**
126 Supermarket 11 5.8%
23 Best Buy Co., Inc. U.S. 45,085 45,085 -420 Electronics Specialty 13 n/a
24 Centres Distributeurs E. Leclerc France 44,807
e**
56,202
g**
n/a Hypermarket/Supercenter/Superstore 7 6.2%
25 Safeway Inc. U.S. 43,322
e
44,207
**
26 Koninklijke Ahold N.V. Netherlands 42,236
**
42,236
**
1,064 Supermarket 12 3.1%
27 Sears Holdings Corp. U.S. 39,854 39,854 -1,054 Department Store 3 -4.7%
28 J Sainsbury plc U.K. 36,840 36,840 971 Supermarket 1 5.5%
29 ITM Dveloppement International
(Intermarch)
France 35,753
e**
50,286
g**
30 The IKEA Group (INGKA Holding B.V.) Netherlands 35,290 36,111 4,201 Other Specialty 41 6.4%
31 Alimentation Couche-Tard Inc. Canada 32,868
**
35,543
**
573 Convenience/Forecourt Store 19 16.4%
32 Loblaw Companies Limited Canada 30,978 31,623 650 Hypermarket/Supercenter/Superstore 2 1.1%
33 Delhaize Group Belgium 29,242
**
29,242
**
34 Wm Morrison Supermarkets PLC U.K. 28,790 28,790 1,028 Supermarket 1 6.9%
35 Publix Super Markets, Inc. U.S. 27,707 27,707 1,552 Supermarket 1 3.6%
36 Macys, Inc. U.S. 27,686
**
27,686
**
1,335 Department Store 3 1.0%
37 The TJX Companies, Inc. U.S. 25,878 25,878 1,907 Apparel/Footwear Specialty 7 6.8%
38 Rite Aid Corporation U.S. 25,392 25,392 118 Drug Store/Pharmacy 1 0.9%
39 Migros-Genossenschafts Bund Switzerland 24,332
e**
26,676** 1,062 Hypermarket/Supercenter/Superstore 3 3.5%
40 Systme U, Centrale Nationale France 23,715
e**
29,849
g**
41 LVMH Mot Hennessy-
Louis Vuitton S.A.
France 22,770
e
36,143
g**
5,027 Other Speciality 76 10.2%
42 Mercadona, S.A. Spain 22,536 22,536 654 Supermarket 1 6.2%
43 Lotte Shopping Co., Ltd. S. Korea 20,978 22,289 1,030 Hypermarket/Supercenter/Superstore 6 18.0%
44 Yamada Denki Co., Ltd. Japan 20,588 20,588 269 Electronics Specialty 7 -0.8%
45 Inditex, S.A. Spain 20,560 ** 20,560** 3,052 Apparel/Footwear Specialty 88 11.1%
46 H.E. Butt Grocery Company U.S. 19,400
e
19,400
e
47 Kohl's Corporation U.S. 19,279 19,279 986 Department Store 1 3.2%
e = estimate
n/a = not available
Retail
revenue
rank
Country
of origin
2012
retail
revenue
(US$m)
2012
parent
company/
group
revenue
(US$m)
2012
parent
company/
group
net income
#
countries
of
operation
2012
2007-
2012
retail
revenue
CAGR
48 AS Watson & Company, Ltd. Hong Kong
SAR
19,161 19,161 n/a Drug Store/Pharmacy 36 6.2%
49 Coop Group Switzerland 19,000
e
28,525
**
50 Apple Inc./Apple Stores U.S. 18,828 156,508
**
41,733 Electronics Specialty 14 35.5%
51 Cencosud S.A. Chile 17,896 18,847 521 Supermarket 5 20.0%
52 H & M Hennes & Mauritz AB Sweden 17,800 17,800 2,485 Apparel/Footwear Specialty 49 9.0%
53 Empire Company Limited/Sobeys Canada 17,353 17,563 393 Supermarket 1 4.8%
54 Kingsher plc U.K. 16,803 16,803 896 Home Improvement 8 2.5%
55 Groupe Adeo SA France 16,725 16,725 n/a Home Improvement 13 11.6%
56 Dollar General Corporation U.S. 16,022 16,022 953 Discount Store 1 11.0%
57 Marks and Spencer Group plc U.K. 15,852 15,852 724 Department Store 47 2.1%
58 X5 Retail Group N.V. Russia 15,795 15,795 -126 Discount Store 2 24.3%
59 The Gap, Inc. U.S. 15,651 15,651 1,135 Apparel/Footwear Specialty 47 -0.1%
60 Suning Commerce Group Co., Ltd.
(formerly Suning Appliance Co. Ltd.)
China 15,608 15,608 415 Electronics Specialty 3 19.6%
61 Coop Italia Italy 15,279
e
16,976
g
62 El Corte Ingls, S.A. Spain 14,671 18,780 221 Department Store 4 -4.8%
63 Meijer, Inc. U.S. 14,600
e
14,600
e
64 Isetan Mitsukoshi Holdings Ltd. Japan 14,600 14,960 313 Department Store 9 ne
65 Open Joint Stock Company
Magnit
Russia 14,424 14,430
**
66 ICA Gruppen (formerly ICA AB) Sweden 14,019
**
14,316
**
67 Jernimo Martins, SGPS, S.A. Portugal 13,979 13,987 471 Discount Store 2 16.4%
68 Toys R Us, Inc. U.S. 13,543 13,543 39 Other Specialty 38 -0.4%
69 John Lewis Partnership plc U.K. 13,454
**
13,454
**
70 Dixons Retail plc U.K. 13,294 13,294 -265 Electronics Specialty 28 -0.3%
71 Conad Consorzio Nazionale,
Dettaglianti Soc. Coop. a.r.l.
Italy 13,157
e**
14,027
g**
72 Co-operative Group Ltd. U.K. 13,139 19,732 -823 Supermarket 1 13.4%
73 Distribuidora Internacional de
Alimentacin, S.A. (Dia, S.A.)
Spain 13,021
**
13,021
**
203 Discount Store 7 ne
74 J. C. Penney Company, Inc. U.S. 12,985 12,985 -985 Department Store 2 -8.1%
75 Otto (GmbH & Co KG) Germany 12,978 16,285 185 Non-Store 54 2.0%
76 Staples, Inc. U.S. 12,975
e
24,381 -211 Other Specialty 13 -3.4%
77 Louis Delhaize S.A. Belgium 12,861
e
12,861
e
n/a Hypermarket/Supercenter/Superstore 6 -1.2%
78 S Group Finland 12,508 15,481 273 Supermarket 5 8.4%
79 SPAR sterreichische
Warenhandels-AG
Austria 12,498
e**
13,980
g**
80 Uny Group Holdings Co., Ltd.
(formerly UNY Co., Ltd.)
Japan 12,398
**
12,610
**
378 Convenience/Forecourt Store 2 -3.2%
81 J. Front Retailing Co., Ltd. Japan 12,117 13,375 211 Department Store 1 2.6%
82 Gome Home Appliance Group China 12,042
e
13,075
ge
n/a Electronics Specialty 3 5.1%
83 Metro Inc. Canada 11,923 11,923 486 Supermarket 1 2.4%
84 Alliance Boots GmbH Switzerland 11,821 35,422
**
1,171 Drug Store/Pharmacy 17 7.0%
85 Fast Retailing Co., Ltd. Japan 11,773
**
11,803
**
946 Apparel/Footwear Specialty 28 12.0%
86 Nordstrom, Inc. U.S. 11,762 12,148 735 Department Store 1 5.9%
87 Whole Foods Market, Inc. U.S. 11,699 11,699 466 Supermarket 3 12.2%
88 BJs Wholesale Club, Inc. U.S. 11,600
e
11,600
e
n/a Cash & Carry/Warehouse Club 1 5.2%
89 E-MART Co., Ltd. S. Korea 11,290 11,290 388 Hypermarket/Supercenter/Superstore 2 ne
Retail
revenue
rank
Country
of origin
2012
retail
revenue
(US$m)
2012
parent
company/
group
revenue
(US$m)
2012
parent
company/
group
net income
#
countries
of
operation
2012
2007-
2012
retail
revenue
CAGR
90 Bed Bath and Beyond Inc. U.S. 10,915
**
10,915
**
1,038 Other Specialty 4 9.1%
91 Tengelmann
Warenhandelsgesellschaft KG
Germany 10,816
e
14,250
g
n/a Home Improvement 14 -15.0%
92 Shoppers Drug Mart Corporation Canada 10,788 10,788 609 Drug Store/Pharmacy 1 4.9%
93 China Resources Enterprise, Limited Hong Kong
SAR
10,754 16,274
**
647 Hypermarket/Supercenter/Superstore 5 26.3%
94 Shoprite Holdings Ltd. S. Africa 10,534
**
10,534
**
95 L Brands, Inc. (formerly Limited
Brands, Inc.)
U.S. 10,459
**
10,459
**
96 Canadian Tire Corporation, Limited Canada 10,387
**
11,434
**
499 Other Specialty 1 6.6%
97 S.A.C.I. Falabella Chile 10,269 11,312 843 Department Store 4 14.8%
98 NorgesGruppen ASA Norway 10,221
**
10,681
**
284 Discount Store 1 7.6%
99 Liberty Interactive Corporation U.S. 10,018 10,054 1,591 Non-Store 9 5.1%
100 The Daiei, Inc. Japan 10,007 10,175 -45 Hypermarket/Supercenter/Superstore 1 -3.7%
101 Giant Eagle, Inc. U.S. 9,900
e**
9,900
e**
102 Bi-Lo Holdings, LLC U.S. 9,870
e
9,870
e
103 Takashimaya Co., Ltd. Japan 9,863 10,653 211 Department Store 4 -3.8%
104 Dairy Farm International Holdings
Limited
Hong Kong
SAR
9,801 9,801 453 Supermarket 12 10.7%
105 Ross Stores, Inc. U.S. 9,721 9,721 787 Apparel/Footwear Specialty 1 10.2%
106 SHV Holdings N.V./Makro Netherlands 9,703 25,734 918 Cash & Carry/Warehouse Club 6 12.8%
107 Dansk Supermarked A/S Denmark 9,406 9,466 232 Discount Store 4 -0.3%
108 Beisia Group Co., Ltd. Japan 9,355
e
10,113
e
n/a Home Improvement 1 2.1%
109 Family Dollar Stores, Inc. U.S. 9,331 9,331 422 Discount Store 1 6.4%
110 Menard, Inc. U.S. 9,200
e
9,200
e
111 Army & Air Force Exchange Service
(AAFES)
U.S. 9,154 9,154 206 Hypermarket/Supercenter/Superstore 30 1.0%
112 Kesko Corporation Finland 9,152
e**
12,457
**
113 Oxylane Groupe France 9,003 9,003 n/a Other Specialty 20 9.4%
114 Jumbo Groep Holding B.V. Netherlands 8,950
g
8,950
g
115 SuperValu Inc. U.S. 8,931 ** 17,097** -1,466 Supermarket 1 -23.6%
116 C&A Europe Belgium/
Germany
8,904
e
8,904
e
n/a Apparel/Footwear Specialty 20 2.5%
117 GameStop Corporation U.S. 8,887 8,887 -270 Other Specialty 16 4.6%
118 Home Retail Group plc U.K. 8,690 8,690 149 Other Specialty 3 -1.8%
119 AutoZone, Inc. U.S. 8,604
**
8,604
**
120 The Pantry, Inc. U.S. 8,253 8,253 -3 Convenience/Forecourt Store 1 3.6%
121 Colruyt Group Belgium 8,129 10,709
**
122 Esselunga S.p.A. Italy 8,019
e
8,745
g
123 dm-drogerie markt GmbH + Co. KG Germany 7,972 8,928
g
n/a Drug Store/Pharmacy 12 10.5%
124 Organizacin Soriana, S.A.B. de C.V. Mexico 7,964 7,964 271 Hypermarket/Supercenter/Superstore 1 9.9%
125 Steinhoff International Holdings Ltd. S. Africa 7,952 13,117 902 Other Specialty 21 36.3%
126 Edion Corporation Japan 7,876
e**
8,290
**
-32 Electronics Specialty 1 -4.4%
127 Grupo Eroski Spain 7,783
e
8,022 -156 Supermarket 2 -2.0%
128 Ks Holdings Corporation Japan 7,714 7,714 161 Electronics Specialty 1 2.3%
129 Yodobashi Camera Co., Ltd. Japan 7,710 7,710 n/a Electronics Specialty 1 -2.2%
130 Reitan Group Norway 7,695 9,018 270 Discount Store 7 16.2%
e = estimate
n/a = not available
Top 250 global retailers 2012 Top 250 global retailers 2012
e = estimate
n/a = not available
Retail
revenue
rank
Country
of origin
2012
retail
revenue
(US$m)
2012
parent
company/
group
revenue
(US$m)
2012
parent
company/
group
net income
#
countries
of
operation
2012
2007-
2012
retail
revenue
CAGR
131 Hy-Vee, Inc. U.S. 7,682 7,682 n/a Supermarket 1 6.3%
132 Dirk Rossmann GmbH Germany 7,652 7,652 n/a Drug Store/Pharmacy 6 13.5%
133 Shanghai Friendship Group
Incorporated Co.
China 7,554
**
7,816
**
134 Dollar Tree, Inc. U.S. 7,395 7,395 619 Discount Store 2 11.8%
135 Globus Holding GmbH & Co. KG Germany 7,388
e
8,641
g
136 Caseys General Stores, Inc. U.S. 7,251 7,251 111 Convenience/Forecourt Store 1 8.5%
137 Pick n Pay Stores Limited S. Africa 7,110
**
7,110
**
138 Compagnie Financire Richemont SA Switzerland 7,009 13,078
**
139 PetSmart, Inc. U.S. 6,758 6,758 390 Other Specialty 3 7.7%
140 Coop Danmark A/S Denmark 6,757
**
6,976
**
27 Supermarket 1 ne
141 Wegmans Food Markets, Inc. U.S. 6,672 6,672 112 Supermarket 1 8.1%
142 Beijing Jingdong Century Trading
Co., Ltd. (Jingdong Mall)
China 6,663
e
6,663
e
n/a Non-Store 82 n/a
143 Dillards, Inc. U.S. 6,648
e
6,752 336 Department Store 1 -2.0%
144 FEMSA Comercio, S.A. de C.V. Mexico 6,580 6,580 n/a Convenience/Forecourt Store 2 15.5%
145 Izumi Co., Ltd. Japan 6,517 6,555 203 Hypermarket/Supercenter/Superstore 1 3.5%
146 Bic Camera Inc. Japan 6,483 6,585 53 Electronics Specialty 1 -1.2%
147 The Great Atlantic & Pacic Tea
Company, Inc.
U.S. 6,400
e
6,400
e
148 Wawa, Inc. U.S. 6,385
e
9,000
e**
n/a Convenience/Forecourt Store 1 10.4%
149 President Chain Store Corp. Taiwan 6,360
e
7,062
**
150 Don Quijote Co., Ltd. Japan 6,301 6,548 254 Discount Department Store 2 6.9%
151 CP ALL Public Company Limited Thailand 6,300 6,401
**
152 Kering S.A. (formerly PPR S.A.) France 6,293 12,522
**
1,392 Apparel/Footwear Specialty 85 -19.1%
153 QuikTrip Corporation U.S. 6,260
e
11,000
e
154 OReilly Automotive, Inc. U.S. 6,182
**
6,182
**
155 Foot Locker, Inc. U.S. 6,182 6,182 397 Apparel/Footwear Specialty 30 2.6%
156 Life Corporation Japan 6,181 6,364 36 Supermarket 1 3.3%
157 Defense Commissary Agency
(DeCA)
U.S. 6,100 6,100 n/a Supermarket 13 1.9%
158 Ofce Depot, Inc. U.S. 6,070
e
10,696 -77 Other Specialty 19 -5.8%
159 Shimamura Co., Ltd. Japan 6,011 6,011 337 Apparel/Footwear Specialty 3 3.6%
160 Advance Auto Parts, Inc. U.S. 5,915
**
6,205
**
161 Dick's Sporting Goods, Inc. U.S. 5,836 5,836 291 Other Specialty 1 8.5%
162 Lojas Americanas S.A. Brazil 5,835 5,835 178 Discount Department Store 1 14.6%
163 H2O Retailing Corporation Japan 5,767 6,354 75 Department Store 1 1.6%
164 Sheetz, Inc. U.S. 5,750
e
5,750
e
165 Sonae, SGPS, SA Portugal 5,737 6,918 185 Supermarket 10 5.7%
166 Associated British Foods plc/ Primark U.K. 5,524 19,319 919 Apparel/Footwear Specialty 8 16.9%
167 BM Birleik Maazalar A.. Turkey 5,506 5,506 184 Discount Store 2 27.2%
168 Next plc U.K. 5,501
**
5,662
**
169 Bauhaus GmbH & Co. KG Germany 5,495
e
5,495
e
170 MatsumotoKiyoshi Holdings Co., Ltd. Japan 5,488
**
5,521
**
138 Drug Store/Pharmacy 1 3.2%
171 Tokyu Corporation Japan 5,473 12,923 536 Department Store 1 -5.2%
e = estimate
n/a = not available
*** Spun off from PPR (now Kering) through an IPO
in June 2013; classied by PPR as a discontinued
operation in 2012.
Retail
revenue
rank
Country
of origin
2012
retail
revenue
(US$m)
2012
parent
company/
group
revenue
(US$m)
2012
parent
company/
group
net revenue
#
countries
of
operation
2012
2007-
2012
retail
revenue
CAGR
172 The SPAR Group Limited S. Africa 5,423
*
5,423
*
173 The Sherwin-Williams Company/
Paint Stores Group
U.S. 5,410 9,534
**
631 Home Improvement 8 1.8%
174 Big Lots, Inc. U.S. 5,400 5,400 177 Discount Store 2 3.0%
175 DCM Holdings Co., Ltd. Japan 5,312 5,315 130 Home Improvement 1 2.1%
176 WinCo Foods LLC U.S. 5,300
e
5,300
e
177 Arcs Co., Ltd. Japan 5,290 5,312 101 Supermarket 1 12.7%
178 Coop Norge, the Group Norway 5,278
**
5,333
**
6 Supermarket 1 ne
179 KF Gruppen Sweden 5,241
e**
5,594
**
-324 Supermarket 1 ne
180 Coppel S.A. de C.V. Mexico 5,226 5,226 742 Department Store 3 18.4%
181 Belle International Holdings Limited Hong Kong
SAR
5,213 5,213 686 Apparel/Footwear Specialty 3 23.0%
182 Lawson, Inc. Japan 5,177
**
5,966
**
183 Deichmann SE Germany 5,016 5,787
g
184 Valor Co., Ltd. Japan 4,959 5,218 99 Supermarket 2 5.9%
185 Groupe FNAC S.A.
***
France 4,943 5,223 -182 Other Specialty 7 ne
186 Sundrug Co., Ltd. Japan 4,930
**
4,930
**
187 Darty plc (formerly Kesa Electricals plc) U.K. 4,895 4,895 -136 Electronics Specialty 8 -9.9%
188 East Japan Railway Company Japan 4,891 32,329 2,174 Convenience/Forecourt Store 1 0.0%
189 RONA Inc. Canada 4,887
**
4,887
**
19 Home Improvement 1 0.4%
190 Central Retail Corporation Ltd. Thailand 4,854
e
4,854
e
n/a Department Store 3 16.1%
191 Grupo Comercial Chedraui, S.A.B.
de C.V.
Mexico 4,821 4,868 118 Hypermarket/Supercenter/Superstore 2 13.3%
192 OJSC Dixy Group Russia 4,752 4,752 34 Supermarket 1 32.0%
193 Dashang Co., Ltd. China 4,684 5,054 167 Department Store 1 16.1%
194 Tractor Supply Company U.S. 4,664 4,664 276 Other Specialty 1 11.5%
195 Barnes& Noble, Inc. U.S. 4,568 6,839
**
-158 Other Specialty 1 -3.3%
196 Heiwado Co., Ltd. Japan 4,562 4,805 70 Hypermarket/Supercenter/Superstore 2 -1.5%
197 Emke Group/Lulu Group
International
UAE 4,560
e
4,560
e
198 Harris Teeter Supermarkets, Inc.
(formerly Ruddick Corporation)
U.S. 4,535 4,535 83 Supermarket 1 6.6%
199 Abercrombie & Fitch Co. U.S. 4,511 4,511 237 Apparel/Footwear Specialty 20 3.8%
200 Coach, Inc. U.S. 4,500
e
5,075
**
201 El Puerto de Liverpool, S.A.B. de C.V. Mexico 4,475 5,043 548 Department Store 1 8.5%
202 Douglas Holding AG Germany 4,465 4,465 -143 Other Specialty 18 2.8%
203 Celesio AG Germany 4,453 28,642 -192 Drug Store/Pharmacy 9 -0.9%
204 Save Mart Supermarkets U.S. 4,435
e
4,435
e
n/a Supermarket 1 -2.8%
205 E.Land World Ltd. S. Korea 4,427
e**
5,017
**
206 Michaels Stores, Inc. U.S. 4,408 4,408 214 Other Specialty 2 2.7%
207 Dell Inc. U.S. 4,369
e
56,940
**
2,372 Non-Store 164 -6.8%
208 Neiman Marcus, Inc. U.S. 4,345 4,345 140 Department Store 1 -0.2%
209 Chongqing Department Store Co., Ltd China 4,340 4,461 111 Department Store 1 38.4%
210 Nike, Inc. U.S. 4,326 25,313 2,485 Apparel/Footwear Specialty 48 n/a
211 OJSC Company M.Video Russia 4,318 4,318 134 Electronics Specialty 1 22.5%
212 SMU S.A. Chile 4,291
**
4,331
**
-88 Supermarket 2 ne
e = estimate
n/a = not available
Retail
revenue
rank
Country
of origin
2012
retail
revenue
(US$m)
2012
parent
company/
group
revenue
(US$m)
2012
parent
company/
group
net revenue
#
countries
of
operation
2012
2007-
2012
retail
revenue
CAGR
213 Joshin Denki Co., Ltd. Japan 4,273
**
4,428
**
42 Electronics Specialty 1 1.4%
214 RadioShack Corporation U.S. 4,258 4,258 -139 Electronics Specialty 33 0.0%
215 Arcadia Group Limited U.K. 4,218
**
4,218
**
216 Sugi Holdings Co., Ltd. Japan 4,206
**
4,206
**
217 Nitori Holdings Co., Ltd. Japan 4,204 4,269 439 Other Specialty 2 9.9%
218 OfceMax Inc. U.S. 4,185
e
6,920 421 Other Specialty 6 -4.6%
219 Iceland Foods Group Limited U.K. 4,173
**
4,173
**
220 Far Eastern Department Stores Ltd.
Retail Group
Taiwan 4,172 4,275 85 Department Store 2 7.3%
221 RaceTrac Petroleum Inc. U.S. 4,170
e
9,060
**
222 Burlington Coat Factory
Investments Holdings, Inc.
U.S. 4,166 4,166 25 Department Store 2 4.0%
223 Nonggongshang Supermarket
Group Co. Ltd.
China 4,099
e
4,807
g
224 Tsuruha Holdings Inc. Japan 4,091 4,092 161 Drug Store/Pharmacy 2 8.5%
225 FamilyMart Co., Ltd. Japan 4,089
**
4,089
**
226 Hudsons Bay Company Canada 4,087 4,087 -45 Department Store 2 ne
227 Williams-Sonoma, Inc. U.S. 4,043 4,043 257 Other Specialty 7 0.5%
228 Karstadt Warenhaus GmbH Germany 4,028
e
4,028
e
-324 Department Store 1 -4.3%
229 Groupe Vivarte France 4,026 4,026 n/a Apparel/Footwear Specialty 64 4.3%
230 Izumiya Co., Ltd. Japan 4,025 4,214 7 Hypermarket/Supercenter/Superstore 2 -2.0%
231 Demoulas Super Markets, Inc. U.S. 4,010 4,010 217 Supermarket 1 10.1%
232 Susser Holdings Corporation U.S. 4,010 5,818
**
233 GS Retail Co., Ltd. S. Korea 4,005
**
4,005
**
234 Woolworths Holdings Limited S. Africa 4,001 4,001 300 Department Store 17 11.9%
235 XXXLutz Group Austria 3,987
e
3,987
e
n/a Other Specialty 9 6.9%
236 Signet Jewelers Limited Bermuda 3,983 3,983 360 Other Specialty 3 1.7%
237 Daiso Sangyo Inc. Japan 3,960
e**
4,258
g**
n/a Discount Department Store 29 0.8%
238 Belk, Inc. U.S. 3,957 3,957 188 Department Store 1 0.7%
239 Liquor Control Board of Ontario Canada 3,920
e
4,888
**
240 Albertsons LLC U.S. 3,900
e
3,900
e
n/a Supermarket 1 -8.3%
241 HORNBACH-Baumarkt-AG Group Germany 3,897 3,897 67 Home Improvement 9 4.1%
242 Roundys, Inc. U.S. 3,891 3,891 -69 Supermarket 1 0.5%
243 Marui Group Co. Ltd. Japan 3,886 4,929 161 Department Store 2 -4.3%
244 Agrokor d.d. Croatia 3,878
**
5,099
**
245 Stater Bros. Holdings Inc. U.S. 3,873 3,873 38 Supermarket 1 1.6%
246 Praktiker AG Germany 3,862 3,862 -243 Home Improvement 9 -5.3%
247 Cosmos Pharmaceutical Corp. Japan 3,856 3,856 110 Drugstore/Pharmacy 1 17.3%
248 Fuji Co. Ltd. Japan 3,832 3,833 22 Hypermarket/Supercenter/Superstore 1 0.5%
249 The Maruetsu, Inc. Japan 3,817 3,864 22 Supermarket 1 -1.2%
250 The Golub Corporation/Price
Chopper Supermarkets
U.S. 3,800
e
3,800
e
Top 250 global retailers 2012 alphabetical listing
Abercrombie & Fitch Co. 199
Advance Auto Parts, Inc. 160
Aeon Co., Ltd. 13
Agrokor d.d. 244
Albertsons LLC 240
Aldi Einkauf GmbH & Co. oHG 9
Alimentation Couche-Tard Inc. 31
Alliance Boots GmbH 84
Amazon.com, Inc. 16
Apple Inc./Apple Stores 50
Arcadia Group Limited 215
Arcs Co., Ltd. 177
Army & Air Force Exchange Service
(AAFES)
111
AS Watson & Company, Ltd. 48
Associated British Foods plc/Primark 166
AutoZone, Inc. 119
Barnes& Noble, Inc. 195
Bauhaus GmbH & Co. KG 169
Bed Bath and Beyond Inc. 90
Beijing Jingdong Century Trading Co.,
Ltd. (Jingdong Mall)
142
Beisia Group Co., Ltd. 108
Belk, Inc. 238
Belle International Holdings Limited 181
Best Buy Co., Inc. 23
Bic Camera Inc. 146
Big Lots, Inc. 174
Bi-Lo Holdings, LLC 102
BM Birleik Maazalar A.. 167
BJ's Wholesale Club, Inc. 88
Burlington Coat Factory Investments
Holdings, Inc.
222
C&A Europe 116
Canadian Tire Corporation, Limited 96
Carrefour S.A. 4
Caseys General Stores, Inc. 136
Casino Guichard-Perrachon S.A. 20
Celesio AG 203
Cencosud S.A. 51
Central Retail Corporation Ltd. 190
Centres Distributeurs E. Leclerc 24
China Resources Enterprise, Limited 93
Chongqing Department Store Co., Ltd 209
Coach, Inc. 200
Colruyt Group 121
Compagnie Financire Richemont SA 138
Conad Consorzio Nazionale,
Dettaglianti Soc. Coop. a.r.l.
71
Coop Danmark A/S 140
Coop Group 49
Coop Italia 61
Coop Norge, the Group 178
Co-operative Group Ltd. 72
Coppel S.A. de C.V. 180
Cosmos Pharmaceutical Corp. 247
Costco Wholesale Corporation 3
CP ALL Public Company Limited 151
CVS Caremark Corp. 12
Daiei, Inc. 100
Dairy Farm International Holdings
Limited
104
Daiso Sangyo Inc. 237
Dansk Supermarked A/S 107
Darty plc (formerly Kesa Electricals plc) 187
Dashang Co., Ltd. 193
DCM Holdings Co., Ltd. 175
Defense Commissary Agency (DeCA) 157
Deichmann SE 183
Delhaize Group 33
Dell Inc. 207
Demoulas Super Markets, Inc. 231
Dicks Sporting Goods, Inc. 161
Dillards, Inc. 143
Dirk Rossmann GmbH 132
Distribuidora Internacional de
Alimentacin, S.A. (Dia, S.A.)
73
Dixons Retail plc 70
dm-drogerie markt GmbH + Co. KG 123
Dollar General Corporation 56
Dollar Tree, Inc. 134
Don Quijote Co., Ltd. 150
Douglas Holding AG 202
E.Land World Ltd. 205
East Japan Railway Company 188
Edeka Zentrale AG & Co. KG 18
Edion Corporation 126
El Corte Ingls, S.A. 62
El Puerto de Liverpool, S.A.B. de C.V. 201
E-MART Co., Ltd. 89
Emke Group/Lulu Group International 197
Empire Company Limited/Sobeys 53
Esselunga S.p.A. 122
Family Dollar Stores, Inc. 109
FamilyMart Co., Ltd. 225
Far Eastern Department Stores Ltd.
ail Group
220
Fast Retailing Co., Ltd. 85
FEMSA Comercio, S.A. de C.V. 144
Foot Locker, Inc. 155
Fuji Co. Ltd. 248
GameStop Corporation 117
Gap, Inc. 59
Giant Eagle, Inc. 101
Globus Holding GmbH & Co. KG 135
Golub Corporation/Price Chopper
Supermarkets
250
Gome Home Appliance Group 82
Great Atlantic & Pacic Tea Company,
Inc.
147
Groupe Adeo SA 55
Groupe Auchan SA 14
Groupe FNAC S.A. 185
Groupe Vivarte 229
Grupo Comercial Chedraui, S.A.B.
de C.V.
191
Grupo Eroski 127
GS Retail Co., Ltd. 233
H & M Hennes & Mauritz AB 52
H.E. Butt Grocery Company 46
H2O Retailing Corporation 163
Harris Teeter Supermarkets, Inc.
(formerly Ruddick Corporation)
198
Heiwado Co., Ltd. 196
Home Depot, Inc. 8
Home Retail Group plc 118
HORNBACH-Baumarkt-AG Group 241
Hudson's Bay Company 226
Hy-Vee, Inc. 131
ICA Gruppen (formerly ICA AB) 66
Iceland Foods Group Limited 219
IKEA Group (INGKA Holding B.V.) 30
Inditex, S.A. 45
Isetan Mitsukoshi Holdings Ltd. 64
ITM Dveloppement International
(Intermarch)
29
Izumi Co., Ltd. 145
Izumiya Co., Ltd. 230
J Sainsbury plc 28
J. C. Penney Company, Inc. 74
J. Front Retailing Co., Ltd. 81
Jernimo Martins, SGPS, S.A. 67
John Lewis Partnership plc 69
Joshin Denki Co., Ltd. 213
Jumbo Groep Holding B.V. 114
Karstadt Warenhaus GmbH 228
Kering S.A. (formerly PPR S.A.) 152
Kesko Corporation 112
KF Gruppen 179
Kingsher plc 54
Kohl's Corporation 47
Koninklijke Ahold N.V. 26
Kroger Co. 5
Ks Holdings Corporation 128
L Brands, Inc. (formerly Limited
Brands, Inc.)
95
Lawson, Inc. 182
Liberty Interactive Corporation 99
Life Corporation 156
Liquor Control Board of Ontario 239
Loblaw Companies Limited 32
Lojas Americanas S.A. 162
Lotte Shopping Co., Ltd. 43
Louis Delhaize S.A. 77
Lowe's Companies, Inc. 21
LVMH Mot Hennessy-
Louis Vuitton S.A.
41
Macys, Inc. 36
Marks and Spencer Group plc 57
Maruetsu, Inc. 249
Marui Group Co. Ltd. 243
MatsumotoKiyoshi Holdings Co., Ltd. 170
Meijer, Inc. 63
Menard, Inc. 110
Mercadona, S.A. 42
Metro AG 7
Metro Inc. 83
Michaels Stores, Inc. 206
Migros-Genossenschafts Bund 39
Neiman Marcus, Inc. 208
Next plc 168
Nike, Inc. 210
Nitori Holdings Co., Ltd. 217
Nonggongshang Supermarket Group
Co. Ltd.
223
Nordstrom, Inc. 86
NorgesGruppen ASA 98
Ofce Depot, Inc. 158
OfceMax Inc. 218
OJSC Company M.Video 211
OJSC Dixy Group 192
Open Joint Stock Company Magnit 65
OReilly Automotive, Inc. 154
Organizacin Soriana, S.A.B. de C.V. 124
Otto (GmbH & Co KG) 75
Oxylane Groupe 113
Pantry, Inc. 120
PetSmart, Inc. 139
Pick n Pay Stores Limited 137
Praktiker AG 246
President Chain Store Corp. 149
Publix Super Markets, Inc. 35
QuikTrip Corporation 153
RaceTrac Petroleum Inc. 221
RadioShack Corporation 214
Reitan Group 130
Rewe Combine 22
Rite Aid Corporation 38
RONA Inc. 189
Ross Stores, Inc. 105
Roundys, Inc. 242
S Group 78
S.A.C.I. Falabella 97
Safeway Inc. 25
Save Mart Supermarkets 204
Schwarz Unternehmens Treuhand KG 6
Sears Holdings Corp. 27
Seven & i Holdings Co., Ltd. 17
Shanghai Friendship Group
Incorporated Co.
133
Sheetz, Inc. 164
Sherwin-Williams Company/Paint
Stores Group
173
Shimamura Co., Ltd. 159
Shoppers Drug Mart Corporation 92
Shoprite Holdings Ltd. 94
SHV Holdings N.V. / Makro 106
Signet Jewelers Limited 236
SMU S.A. 212
Sonae, SGPS, SA 165
SPAR Group Limited 172
SPAR sterreichische Warenhandels-AG 79
Staples, Inc. 76
Stater Bros. Holdings Inc. 245
Steinhoff International Holdings Ltd. 125
Sugi Holdings Co., Ltd. 216
Sundrug Co., Ltd. 186
Suning Commerce Group Co., Ltd.
(formerly Suning Appliance Co. Ltd.)
60
SuperValu Inc. 115
Susser Holdings Corporation 232
Systme U, Centrale Nationale 40
Takashimaya Co., Ltd. 103
Target Corporation 10
Tengelmann
Warenhandelsgesellschaft KG
91
Tesco PLC 2
TJX Companies, Inc. 37
Tokyu Corporation 171
Toys R Us, Inc. 68
Tractor Supply Company 194
Tsuruha Holdings Inc. 224
Uny Group Holdings Co., Ltd.
(formerly UNY Co., Ltd.)
80
Valor Co., Ltd. 184
Walgreen Co. 11
Wal-Mart Stores, Inc. 1
Wawa, Inc. 148
Wegmans Food Markets, Inc. 141
Wesfarmers Limited 19
Whole Foods Market, Inc. 87
Williams-Sonoma, Inc. 227
WinCo Foods LLC 176
Wm Morrison Supermarkets PLC 34
Woolworths Holdings Limited 234
Woolworths Limited 15
X5 Retail Group N.V. 58
XXXLutz Group 235
Yamada Denki Co., Ltd. 44
Yodobashi Camera Co., Ltd. 129
Retail industry continues to grow despite difcult economy
The 2012 scal year got off to a difcult start for the global
retail industry. Much of Europe fell back into recession in 2011,
a recession that continued throughout the following year.
In the rst half of 2012 there was considerable nancial turmoil
associated with the perceived risk that the Eurozone would fail.
The European crisis had a negative impact on many of the worlds
leading economies. In China, growth slowed considerably in 2012
as European demand for imported goods declined. In Japan,
economic growth was feeble despite the countrys initially strong
recovery from the March 2011 earthquake and tsunami.
The U.S. economy nearly stalled in late 2011, but regained a bit of
momentum in early 2012 as consumer spending and the housing
market began to show signs of modest improvement. Although
growth remained reasonably strong in some emerging markets,
the overall economic environment was weak in the major markets
where the Top 250 retailers operate.
Despite difcult economic conditions throughout 2012, the worlds
leading retailers continued to grow, building on the rebound that
began in 2010. Sales-weighted, currency-adjusted retail revenue
increased 4.9 percent in 2012 for the Top 250 Global Powers of
Retailing, following a 5.1 percent gain in 2011 and 5.3 percent
growth in 2010. Nearly 80 percent of the Top 250 (199 companies)
posted an increase in retail revenue. However, Japanese retailers
continued to account for a disproportionate share of the companies
that experienced a decline in revenue, as was the case in 2011 in
the immediate aftermath of the earthquake and tsunami.
The vast majority of Top 250 companies that disclosed their
bottom-line results171 of 198 companiesonce again operated
at a prot in 2012, producing a composite net prot margin of 3.1
percent and return on assets of 5 percent. While these results show
a decline from the gures reported for the Top 250 in 2011 and
2010, this is strictly due to a methodological change. Beginning
with this report for scal 2012, the net prots for Top 250
companies that are not primarily retailers have been excluded from
the composite net prot margin and return on assets calculations.
Because these companies did not derive the majority of their
revenue from retail operations, their consolidated prots mostly
reect their non-retail activities.
This change resulted in the exclusion of nine companies in 2012
including Apple, whose unusually high prot margins skew the
overall results. Readers of this report who monitor the performance
of the Top 250 year-over-year should note that without this change
in methodology the overall net prot margin and return on assets
would have ticked up slightly in 2012.
Total retail revenue for the Top 250 Global Powers of Retailing
reached nearly $4.3 trillion in 2012, and the average size of Top 250
retailers exceeded $17 billion. To rank among the Top 250 in 2012
required retail revenue of at least $3.8 billion.
Top 250 quick stats 2012
$4.29 trillionaggregate retail revenue of Top 250
$17.15 billionaverage retail revenue of Top 250
company
$3.80 billionminimum retail revenue required to be
among Top 250
4.9%composite year-over-year retail revenue growth
4.6%2007-2012 composite compound annual growth
rate in retail revenue
3.1%composite net prot margin
5.0%composite return on assets
24.3%percent of Top 250 retail revenue from foreign
operations
10.0average number of countries in which Top 250
retailers operate
63.2%Top 250 retailers with foreign operations
Global Powers of Retailing Top 250 highlights
* Sales-weighted, currency-adjusted composites
** Average
Source: Published company data and Planet Retail
Top 10 retailers worldwide, 2012
Top 250
rank Name of company
Country
of origin
Retail revenue
(US$mil)
Retail
revenue
y-o-y growth
Net prot
margin
Return on
assets
# countries
of operation
% retail revenue
from foreign
operations
1 Wal-Mart Stores Inc. U.S. 469,162 5.0% 3.8% 8.7% 28 29.1%
2 Tesco PLC U.K. 101,269 0.5% 0.2% 0.2% 13 33.5%
3 Costco Wholesale
Corporation
U.S. 99,137 11.5% 1.8% 6.5% 9 27.6%
4 Carrefour S.A. France 98,757 -5.5% 1.7% 2.9% 31 54.0%
5 The Kroger Co. U.S. 96,751 7.1% 1.6% 6.1% 1 0.0%
6 Schwarz Unternehmens
Treuhand KG
Germany 87,236 e 6.6% n/a n/a 26 57.7%
7 Metro AG Germany 85,832 0.1% 0.2% 0.3% 32 61.6%
8 The Home Depot Inc. U.S. 74,754 6.2% 6.1% 11.0% 5 11.2%
9 Aldi Einkauf GmbH &
Co. oHG
Germany 73,035 e 7.5% n/a n/a 17 59.2%
10 Target Corporation U.S. 71,960 5.1% 4.1% 6.2% 1 0.0%
Top 10* $1,257,892 4.2% 2.8% 5.8% 16.3** 32.3%
Top 250* $4,287,587 4.9% 3.1% 5.0% 10.0** 24.3%
Top 10 share of Top 250 retail revenue 29.3%
Tesco overtakes Carrefour for second place
A shakeup occurred among the worlds 10 largest retailers in
2012, mostly the result of a spate of divestments. While Wal-Mart
increased its lead, Carrefourformerly the worlds second-largest
retailerfell to fourth place following back-to-back years of
declining sales primarily attributable to the spinoff of the Dia hard
discount chain in July 2011.
Tesco, which assumed second place in the ranking, was also
impacted by discontinued operations, having decided to shutter
its Fresh & Easy operations in the United States. It was also a year
of transformation for Metro Group. No longer Germanys largest
retailer, Metro sold its Makro Cash & Carry U.K. unit to Booker and
its Real Eastern Europe operations (excluding Turkey) to Auchan.
As a result of these and other changes, Metro dropped from fourth
to seventh place.
Meanwhile, a double-digit sales gain boosted Costco from sixth
place to third in 2012. The strength of the U.S. dollar relative to the
euro moved The Home Depot ahead of Aldi. And Target joined the
top 10 leader board for the rst time in 2012, replacing Walgreen.
The drug store retailers top line was negatively impacted by a
decline in prescription sales after its contract with the Express
Scripts pharmacy provider network lapsed (the companies
subsequently reached a new agreement).
As a group, the top 10 grew more slowly than the Top 250 in 2012,
with composite retail revenue growth of 4.2 percent vs. 4.9 percent.
Protability for the leaders also lagged that of the broader group.
At 2.8 percent, the top 10 composite net prot margin was
moderated by the restructuring activity that occurred in 2012.
In particular, Tescos net result, which factors in a signicant loss
from its discontinued U.S. operations, had an adverse effect.
Lower overall protability also reects the focus of most of the
top 10 retailers on inherently lower-margin, fast-moving consumer
goods. Despite a slimmer prot margin, the top 10 generated a
higher return on assets, posting a composite ROA of 5.8 percent
vs. 5 percent for the Top 250.
The leader group as a whole is much more globally active than
the Top 250 retailers overall. On average, the top 10 had retail
operations in 16.3 countries in 2012, compared with 10 countries
for the Top 250. The worlds 10 largest retailers generated almost
one-third of their combined retail revenue from foreign operations
in 2012; this compares with less than one-quarter of total Top 250
revenue. Notably, four of the ve European companies in the top
10 derived the majority of their revenue from outside their home
countries. Conversely, two of the ve U.S. companies in the top 10
had no international operations.
Sales growth and protability by region/country* (%)
2007-2012 retail revenue CAGR** 2012 retail revenue growth 2012 net prot margin 2012 ROA
Results reect Top 250 companies headquartered in each region/country
* Sales-weighted, currency-adjusted composites ** Compound annual growth rate
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Global Powers of Retailing geographical analysis
For purposes of geographical analysis, companies are assigned to a region based on their
headquarters location, which may not always coincide with the geography from which they
derive the majority of their sales. Although many companies derive sales from outside their
region, 100 percent of each companys sales are accounted for within that companys region.
Another year of tough trading for European retailers
Retailers based in emerging markets continued to enjoy strong
consumer demand in 2012, although the pace of growth slowed
somewhat from 2011. Latin American retailers led the way with
14.7 percent composite retail revenue growth, followed by retailers
in the Africa/Middle East region. Other Asia/Pacic retailers
(excluding Japan) also posted solid gains, but not at the double-
digit levels seen in the prior two years. Japanese retailers recovered
from a devastating 2011 but continued to trail the other countries
and regions tracked.
Growth cooled from 6.3 percent to 4.3 percent for the U.S.
retailers in the Top 250. For the North American region as a whole,
and Canada in particular, revenue growth got a boost from c-store
operator and licensor Alimentation Couche-Tard. In June 2012, the
company acquired Statoil Fuel & Retail, a Scandinavian retailer of
fuel and convenience products, resulting in a 43 percent increase in
retail revenue. At almost $33 billion, Couche-Tard is now the largest
retailer based in Canada, although only 15 percent of its retail
revenue is derived from Canadian operations.
Region/country proles, 2012
#
companies
Average
retail revenue
(US$mil)
Share of
Top 250
Companies
Share of
Top 250
Revenue
Top 250 250 $17,150 100.0% 100.0%
Africa/Middle East 7 $6,441 2.8% 1.1%
Asia/Pacic 60 $10,802 24.0% 15.1%
Japan 39 $9,564 15.6% 8.7%
Other Asia/Pacic 21 $13,102 8.4% 6.4%
Europe 82 $19,398 32.8% 37.1%
France 12 $31,601 4.8% 8.8%
Germany 17 $25,239 6.8% 10.0%
U.K. 14 $19,460 5.6% 6.4%
Other Europe 39 $13,076 15.6% 11.9%
Latin America 9 $7,484 3.6% 1.6%
North America 92 $21,047 36.8% 45.2%
U.S. 83 $21,797 33.2% 42.2%
Canada 9 $14,132 3.6% 3.0%
Results reect Top 250 retailers headquartered in each region/country

European retailers faced another year of tough trading. The region
fell back into recession when austerity measures, enacted to cope
with the Eurozone credit crisis, resulted in low growth and high
unemployment in many European countries. Retailers based in
Germany, and particularly the U.K., underperformed on the top line
compared with Europes Top 250 retailers as a group.
Europes big three economies account for just over half of the
regions Top 250 retail companies, but more than two-thirds of its
total retail revenue. French retailersby far the worlds largest,
averaging $31.6 billion in retail revenue in 2012reported stronger
results than their British and German counterparts. This may have
something to do with their broader global footprint, meaning more
of their revenue base is located outside the slow-growing European
market. However, it mostly has to do with Casino, the multi-format
French supermarket group. In July 2012, Casino became the sole
controlling shareholder of GPA (Grupo Po de Acar), Brazils
largest retailer, whose results became fully consolidated within
Casinos accounts in the second half of scal 2012.
Protability also suffered for European retailers in 2012, as the
composite net prot margin (2.9 percent) lagged all other regions.
Slow top-line growth for U.K. and German retailers impacted their
bottom lines, as well. That said, the U.K.s slim 1.4 percent composite
net prot margin was primarily the result of Tesco, the countrys largest
retailer, whose annual prots fell for the rst time in nearly 20 years.
Tesco eked out a 0.2 percent prot margin after accounting for a
signicant loss, primarily from its decision to exit the U.S. market.
Of the 17 German Top 250 retailers, nine are privately held companies
that do not release bottom-line results. Four of the remaining eight
companies in this historically low-margin market operated at a loss; the
other four generated net prots of less than 2 percent of revenues.
Conversely, in Latin America and Africa/Middle East, strong growth
continued to yield above-average protability. In 2012, Latin
American retailers produced an industry-leading 4.9 percent net
prot margin, and retailers in the Africa/Middle East region realized
a 7.2 percent return on assets.
European retailers increase dependence on foreign markets
Over the years that Deloitte has been tracking the Global Powers
of Retailing, the share of total Top 250 retail revenue from foreign
operations has continued to grow. In 2012, nearly one-quarter
(24.3 percent) of Top 250 revenue was generated from foreign
markets, up slightly from 23.8 percent in 2011 and 23.4 percent
in 2010. Top 250 retailers operated in an average of 10 countries,
compared with 9 in 2011 and 8.2 in 2010. (Note: The 2012 gure
includes Dell, which is truly global in scope. Therefore, it is not
strictly comparable with gures in prior reports from which Dell
was excluded. However, if Dell is excluded from the 2012 results,
the average number of countries would still have increased to 9.4.)
As another indicator of increasing globalization, the share of Top 250
retailers that operated only within their domestic borders continues to
decline: 36.8 percent in 2012, down from 38 percent in 2011 and
40.4 percent in 2010. While these statistics are not strictly comparable,
as the composition of the Top 250 retailers uctuates from year to
year, the overall trend toward increasing globalization is clear.
European retailers remain the most global. In 2012, they operated
in an average of 15.6 countries and generated nearly 40 percent of
total retail revenue from foreign operations. More than 80 percent
of the regions Top 250 retailersincluding all of the French
companiesoperated outside their home country.
Japanese retailers continue to be the least global. Doing business
in an average of four countries, they generated just 7.7 percent of
retail revenue in foreign markets in 2012; more than half remained
single-country operators. While half of the North American retailers
had international operations, they accounted for a relatively small
share (16.1 percent) of the regions total retail revenue.
Most Top 250 Latin American retailers have operations outside
their domestic borders, but have not ventured beyond their region
with the exception of Mexican hypermarket chain Chedraui, which
has stores in the southwestern United States. Nevertheless, retailers
based in this region derived nearly one-quarter of total 2012
revenue from international operations.
The average number of countries with retail operations
includes the location of franchised, licensed and joint venture
operations in addition to corporate-owned channels of
distribution. Where information was available, the number
of countries reects non-store sales channels, like consumer-
oriented e-commerce sites, catalogs and TV shopping
programs, as well as store locations. However, for many
retailers, specic information about non-store activity was
not available.
% retail
revenue
from foreign
operations
Average #
of countries
% single-
country
operators
Top 250 24.3% 10.0 36.8%
Africa/Middle East 23.2% 11.7 0.0%
Asia/Pacic 12.6% 5.7 45.0%
Japan 7.7% 4.0 53.8%
Other Asia/Pacic 19.4% 8.9 28.6%
Europe 39.1% 15.6 19.5%
France 44.4% 29.5 0.0%
Germany 44.9% 15.4 11.8%
U.K. 22.4% 17.3 21.4%
Latin America 23.1% 2.3 33.3%
North America 16.1% 8.4 50.0%
U.S. 15.6% 9.0 48.2%
Results reect Top 250 retailers headquartered in each region/country

Level of globalization by region/country, 2012
Product Sector Proles, 2012
#
companies
Average
retail revenue
(US$mil)
Share of
Top 250
Companies
Share of
Top 250
Revenue
Top 250 250 $17,150 100.0% 100.0%
Fashion Goods 42 $9,013 16.8% 8.8%
Fast-moving
Consumer
Goods
137 $21,360 54.8% 68.3%
Hardlines &
Leisure Goods
52 $12,322 20.8% 14.9%
Diversied 19 $18,001 7.6% 8.0%
Global Powers of Retailing product sector analysis
The Global Powers of Retailing analyzes performance by primary retail product sector as
well as by geography. Four sectors are used for analysis: Fast-moving Consumer Goods,
Fashion Goods, Hardlines & Leisure Goods and Diversied. A company is assigned to one
of three specic product sectors if at least half of its sales are derived from that broadly
dened product category. If none of the three specic product sectors account for at least
50 percent of a companys sales, it is considered to be diversied.
FMCG sector continues to outpace specialty retailers
Retailers of Fast-moving Consumer Goods (FMCG) outpaced
the other product sectors in 2012 just as they did in 2011, with
5.3 percent composite retail revenue growth. This group also
enjoyed the strongest growth over the longer term, with a
composite compound annual growth rate of 5.3 percent from
2007 through 2012. This is not surprising given that food and other
consumer packaged goods tend to be more recession-proof than
other product sectors. FMCG is by far the largest product sector,
both in number and size of companies: In 2012, it accounted for
more than half of all Top 250 companies and more than two-thirds
of total Top 250 retail revenue. The average size of the 137 retailers
in this group was more than $21 billion.
Fashion Goods retailers have historically been the most protable
sector, and 2012 was no exception. The group posted a composite
net prot margin of 7.4 percentmore than double the protability
of the Top 250 as a wholeand realized an 8.4 percent return on
assets. The 42 Fashion Goods retailers averaged $9 billion in retail
revenue, considerably smaller in size than the other product sectors.
With Apple excluded from the protability ratios (see discussion
of methodology change on page G19), Hardlines & Leisure Goods
retailers produced a 3.2 percent composite net prot margin in
2012. This overall result disguises the difculty faced by the sectors
consumer electronics and entertainment media retailers, half which
operated at a loss in 2012. Struggles with declining categories and
increasingly saturated markets created a challenging operating
environment.
Diversied retailersthose that did not derive a majority of sales
from any of the three specic product sectorsremained the
weakest across all four performance measures tracked. Operating
multiple formats or concepts results in increased operational and
marketing complexity and may detract management attention,
commitment and sustained investment from the core business.
0
2
4
6
8
10
Sales growth and protability by product sector* (%)
2007-2012 retail revenue
CAGR**
4
.
6
4
.
9
3
.
1
5
.
0
3
.
3
5
.
1
7
.
4
8
.
4
5
.
3
5
.
3
2
.
6
4
.
5
3
.
9
4
.
5
3
.
2
4
.
8
2
.
3
2
.
6
2
.
4
3
.
3
Top 250 Fashion
Goods
Fast-moving
Consumer
Goods
Hardlines
& Leisure
Goods
Diversied
2012 retail revenue growth
2012 net prot margin 2012 ROA
* Sales-weighted, currency-adjusted composites
** Compound annual growth rate

Fashion Goods retailers have biggest global footprint
The level of globalization by product sector shows that Fashion
Goods retailers continue to adopt a more international prole.
On average, their operations spanned 22.2 countries in 2012
more than twice the average for the Top 250 group as a whole.
More than three-quarters of the retailers in this sector operated
internationally, and foreign markets accounted for nearly
30 percent of the sectors total retail revenue.
As a group, retailers of Fast-moving Consumer Goods were the
least global: Nearly 45 percent of Top 250 FMCG retailers were
single-country operators in 2012. These retailers also operated
in the fewest number of countries. Nevertheless, FMCG retailers
that have expanded internationallyincluding most of the largest
companieshave made their presence felt, as foreign operations
accounted for a relatively sizeable 23.3 percent of the sectors
total revenue.
% retail
revenue
from foreign
operations
Average
# countries
% single-
country
operators
Top 250 24.3% 10.0 36.8%
Fashion Goods 29.8% 22.2 23.8%
Fast-moving
Consumer Goods
23.3% 5.1 44.5%
Hardlines &
Leisure Goods
26.6% 13.1 26.9%
Diversied 22.6% 10.3 36.8%
Level of globalization by product sector, 2012
Emerging market tailwinds, acquisitions
and trends power Fastest 50
Growth
rank
Top
250
Country
of origin
2012
retail
revenue
(US$mil)
Dominant operational
format
2007-2012
retail
revenue
CAGR
2012
retail
revenue
growth
2012
net prot
margin
1 114 Jumbo Groep Holding B.V. Netherlands 8,950
g
Supermarket 40.7% 115.2% n/a
2 209 Chongqing Department Store
Co., Ltd
China 4,340 Department Store 38.4% 12.4% 2.5%
3 125 Steinhoff International
Holdings Ltd.
S. Africa 7,952 Other Specialty 36.3% 16.9% 6.9%
4 50 Apple Inc./Apple Stores U.S. 18,828 Electronics Specialty 35.5% 33.3% 26.7%
5 16 Amazon.com, Inc. U.S. 58,570 Non-Store 32.3% 26.0% -0.1%
6 192 OJSC Dixy Group Russia 4,752 Supermarket 32.0% 43.7% 0.7%
7 65 Open Joint Stock Company
"Magnit"
Russia 14,424 Convenience/Forecourt Store 31.6% 26.3% 5.6%
8 102 Bi-Lo Holdings, LLC U.S. 9,870
e
9 167 BM Birleik Maazalar A.. Turkey 5,506 Discount Store 27.2% 21.0% 3.3%
10 93 China Resources Enterprise,
Limited
Hong Kong
SAR
10,754 Hypermarket/Supercenter/
Superstore
26.3% 19.2% 4.0%
11 197 Emke Group/Lulu Group
International
UAE 4,560
e
Hypermarket/Supercenter/
Superstore
25.3% 7.3% n/a
12 58 X5 Retail Group N.V. Russia 15,795 Discount Store 24.3% 2.2% -0.8%
13 181 Belle International Holdings
Limited
Hong Kong
SAR
5,213 Apparel/Footwear Specialty 23.0% 13.5% 13.2%
14 211 OJSC Company M.Video Russia 4,318 Electronics Specialty 22.5% 19.4% 3.1%
15 51 Cencosud S.A. Chile 17,896 Supermarket 20.0% 20.7% 2.8%
16 138 Compagnie Financire
Richemont SA
Switzerland 7,009 Other Specialty 19.7% 16.8% 19.8%
50 fastest-growing retailers 2007-2012
Companies in bold type were also among the 50 fastest-growing retailers in 2012.
e = estimate
Unlike the headwinds retailers in mature markets face, emerging
market tailwinds continue to fuel aggressive organic growth.
Emerging market retailers accounted for more than half (26) of the
Fastest 50 in 2012, including all four Russian Top 250 companies,
six of seven Africa/Middle East retailers and six of nine based
in Latin America. Yet vigorous organic growth was also evident
in more mature markets as retailers capitalized on high-growth
product categories, consumer segments, formats and channels.
Acquisitions served as the main driver of growth for other Fastest
50 retailers, including Jumbo Groep Holding, a closely held Dutch
supermarket company. Jumbo bought competitor C1000
in February 2012; this followed its purchase of Super de Boer
in December 2009. These acquisitions made Jumbo the fastest-
growing retailer from 2007-2012.
As a group, the 50 fastest-growing retailers increased retail revenue at
a compound annual rate of 18.7 percent between 2007 and 2012,
four times the rate of the Top 250. Fastest 50 retailers also
outperformed the Top 250 on the bottom line, but not to the same
extent as in prior years. The composite net prot margin of 3.8 percent
was 0.7 percentage points higher than that of the Top 250.
The Fastest 50 is based on compound annual revenue growth over a ve-year period. Fastest
50 companies that were also among the 50 fastest-growing retailers in 2012 make up an
even more elite group. These retailers are designated in italicized bold type on the list.
Growth
rank
Top
250
Country
of origin
2012
retail
revenue
(US$mil)
Dominant operational
format
2007-2012
retail
revenue
CAGR
2012
retail
revenue
growth
2012
net prot
margin
17 154 OReilly Automotive, Inc. U.S. 6,182 ** Other Specialty 19.6% 6.8% 9.5%
18 60 Suning Commerce Group Co.,
Ltd. (formerly Suning Appliance
Co. Ltd.)
China 15,608 Electronics Specialty 19.6% 4.8% 2.7%
19 232 Susser Holdings Corporation U.S. 4,010 Convenience/Forecourt Store 19.1% 10.4% 0.9%
20 180 Coppel S.A. de C.V. Mexico 5,226 Department Store 18.4% 16.8% 14.2%
21 43 Lotte Shopping Co., Ltd. S. Korea 20,978 Hypermarket/Supercenter/
Superstore
18.0% 12.4% 4.6%
22 247 Cosmos Pharmaceutical Corp. Japan 3,856 Drugstore/Pharmacy 17.3% 18.0% 2.9%
23 166 Associated British Foods plc/
Primark
U.K. 5,524 Apparel/Footwear Specialty 16.9% 15.1% 4.8%
24 31 Alimentation Couche-Tard Inc. Canada 32,868
**
Convenience/Forecourt Store 16.4% 42.9% 1.6%
25 67 Jernimo Martins, SGPS, S.A. Portugal 13,979 Discount Store 16.4% 12.1% 3.4%
26 130 Reitan Group Norway 7,695 Discount Store 16.2% 17.2% 3.0%
27 190 Central Retail Corporation Ltd. Thailand 4,854
e
Department Store 16.1% 30.1% n/a
28 193 Dashang Co., Ltd. China 4,684 Department Store 16.1% 4.2% 3.3%
29 133 Shanghai Friendship Group
Incorporated Co.
China 7,554 ** Supermarket 15.9% 5.4% 3.1%
30 144 FEMSA Comercio, S.A. de C.V. Mexico 6,580 Convenience/Forecourt Store 15.5% 16.6% n/a
31 97 S.A.C.I. Falabella Chile 10,269 Department Store 14.8% 13.4% 7.5%
32 172 The SPAR Group Limited S. Africa 5,423
*
Supermarket 14.7% 12.2% 2.4%
33 162 Lojas Americanas S.A. Brazil 5,835 Discount Department Store 14.6% 11.1% 3.1%
34 94 Shoprite Holdings Ltd. S. Africa 10,534
**
Supermarket 14.2% 12.1% 3.9%
35 19 Wesfarmers Limited Australia 54,231 Supermarket 13.8% 4.4% 3.8%
36 132 Dirk Rossmann GmbH Germany 7,652 Drug Store/Pharmacy 13.5% 16.2% n/a
37 205 E.Land World Ltd. S. Korea 4,427
e**
Apparel/Footwear Specialty 13.4% 4.0% 1.3%
38 72 Co-operative Group Ltd. U.K. 13,139 Supermarket 13.4% 1.3% -4.2%
39 191 Grupo Comercial Chedraui, S.A.B.
de C.V.
Mexico 4,821 Hypermarket/Supercenter/
Superstore
13.3% 11.3% 2.4%
40 106 SHV Holdings N.V./ Makro Netherlands 9,703 Cash & Carry/Warehouse
Club
12.8% 17.5% 3.6%
41 177 Arcs Co., Ltd. Japan 5,290 Supermarket 12.7% 24.6% 1.9%
42 87 Whole Foods Market, Inc. U.S. 11,699 Supermarket 12.2% 15.7% 4.0%
43 200 Coach, Inc. U.S. 4,500
e
Other Specialty 12.1% 6.3% 20.4%
44 176 WinCo Foods LLC U.S. 5,300
e
45 85 Fast Retailing Co., Ltd. Japan 11,773
**
Apparel/Footwear Specialty 12.0% 13.2% 8.0%
46 234 Woolworths Holdings Limited S. Africa 4,001 Department Store 11.9% 23.2% 7.5%
47 134 Dollar Tree, Inc. U.S. 7,395 Discount Store 11.8% 11.5% 8.4%
48 55 Groupe Adeo SA France 16,725 Home Improvement 11.6% 12.1% n/a
49 194 Tractor Supply Company U.S. 4,664 Other Specialty 11.5% 10.2% 5.9%
50 151 CP ALL Public Company Limited Thailand 6,300 Convenience/Forecourt Store 11.5% 22.3% 5.6%
Fastest 50 sales-weighted, currency-adjusted composite 18.7% 18.1% 3.8%
Top 250 sales-weighted, currency-adjusted composite
4.6% 4.9%
3.1%
50 fastest-growing retailers, 2007-2012
Companies in bold type were also among the 50 fastest-growing retailers in 2012.
e = estimate
The top 50 e-retailers
For the rst time, Deloitte has compiled a list of the worlds top 50
e-retailers. Ranking the e-50 was not a straightforward task. First,
although many companies tout their e-commerce growth rates,
some do not quantify their actual e-commerce sales. One reason for
this, according to these companies, is that e-commerce represents
an immaterial amount of their overall sales. Among multi-channel
retailers, some also make the point that e-commerce sales are not
independent of their other channels and, therefore, are not reported
separately. When e-commerce data was not disclosed, we have
relied on estimates from Planet Retail and other retail analysts.
Even when e-commerce data is reported, it is often not comparable
across companies. For example, the revenue for top-ranked Amazon.
com reects the companys net product sales where Amazon is
the seller of record; this excludes not only sales from Amazon
Marketplace but also the fees and commissions associated with its
third-party sellers. On the other hand, the net revenue gure for
Jingdong Mall includes the companys direct-to-consumer retail sales
as well as revenue earned from its e-marketplace activities.
Some companiesincluding several of the apparel retailersreport
total non-store revenue, which includes catalog sales as well as
e-commerce sales. In the case of Best Buy, the company reports only
its domestic online sales, which means it is ranked lower on the list
than it would be if its total e-commerce sales had been available.
Finally, to the greatest extent possible we have reported net B2C
retail sales. For a few companies, however, gross transaction
volume was the only gure available. As a result, the overall ranking
for these companies is somewhat inated. Please view the top 50
e-retailers list with these data limitations in mind.
An analysis of the data shows:
Amazon dominates the world of e-retailing.
The Top 250 Global Powers of Retailing dominate the e-50; more
than three-quarters of the 50 largest e-retailers (39 companies)
are Top 250 retailers.
The vast majority of the e-50 (42 companies) are multi-channel
retailers; only eight are non-store or web-only retailers.
Most e-50 retailers are based in the U.S. (28), followed by Europe
(17), especially the U.K. and France; only ve are emerging-
market companies (three in China, two in Brazil). While Asia has
a number of large and rapidly growing e-commerce companies,
online marketplaces tend to serve as the primary e-commerce
model in this region. Companies like Alibaba Group, operator
of Taobao (Chinas most popular consumer-to-consumer
marketplace) and Tmall (an open business-to-consumer platform),
as well as Japans Rakuten derive the majority of their revenue as
facilitators, not as retailers; therefore, they do not rank among
the e-50.
e-50 digital sales grew at a rapid pace in 2012, averaging nearly
29 percent.
E-commerce accounted for a signicant share of total retail
revenue for the e-50 in 2012nearly one-third of company
sales, on average (including the pure-play e-retailers). However,
this varies widely. E-commerce was typically a small slice of the
big mass merchants and food retailers revenue, often just 1-2
percent; it accounted for 5-15 percent of sales for some of the
big department store and specialty apparel retailers, and reached
15-20 percent for several consumer electronics retailers.
E-retailing, as dened in this analysis, includes B2C e-commerce only (i.e., where the
company owns the inventory and the revenue reects e-retail sales). Companies that
primarily operate as e-marketplaces are excluded from this analysis as their revenues are
largely derived from fees and commissions on sales from third-party sellers (consumers or
other businesses that own the inventory) rather than directly from the sale of goods.
Top
e-retailer
sales rank
FY12
Top 250
sales
rank
FY12
Name of
company
Country
of origin
FY12
e-commerce
sales
(US$ mil)
B2C
e-commerce
% of total
retail revenue
FY12
e-commerce
growth rate Comments
1 16 Amazon.com,
Inc.
U.S. 51,733.0 100.0% 23.2% Net Product Sales gure from income
statement (where Amazon is seller of
recordexcludes third party sales)
2 50 Apple Inc./ Apple
Stores
U.S. 8,600.0
e
31.4% n/a Estimated sales of Store.Apple.com
3 1 Wal-Mart Stores,
Inc.
U.S. 7,500.0
e
1.6% 20.0%
4 75 Otto (GmbH &
Co KG)
Germany 7,410.6
e
57.1% 7.5%
5 142 Beijing Jingdong
Century Trading
Co., Ltd.
(Jingdong Mall)
China 6,663.3
e
100.0% 98.1% Estimated total net revenue for company
including direct-to-consumer sales plus
revenue from e-marketplace activities;
2012 total transaction volume
approximately US$ 9.5 billion
6 2 Tesco PLC U.K. 4,761.5
e
4.7% 13.0%
7 99 Liberty
Interactive
Corporation
U.S. 4,397.4 43.9% 12.4% Includes QVC.com plus company's other
e-retail subsidiaries
8 207 Dell Inc. U.S. 4,370.0 100.0% n/a Estimated direct-to-consumer
e-commerce sales
9 20 Casino Guichard-
Perrachon S.A.
France 3,422.6
e
6.4% 11.5% Estimated e-commerce sales for
Cdiscount, Nova Pontocom, and exito.
com
10 n/a Jia.com China 3,204.7
g
100.0% 75.7% Founded in 2005; China's largest
building materials, home improvement,
and home dcor e-commerce platform;
Owned by Shanghai Qijia Network
Information Science & Technology Co.,
Ltd.
11 n/a Newegg Inc. U.S. 2,800.0
e
100.0% 3.7%
12 118 Home Retail
Group plc
U.K. 2,734.2
e
31.5% 10.2%
13 23 Best Buy Co., Inc. U.S. 2,630.0
e
7.1% 12.9% Estimate for domestic online sales only
14 76 Staples, Inc. U.S. 2,500.0
e
19.3% n/a Estimated B2C e-commerce sales
15 162 Lojas Americanas
S.A./B2W Digital
Brazil 2,477.4 42.5% 13.7% B2W owns online retail websites
Americanas.com, Submarino and
Shoptime
16 60 Suning
Commerce
Group Co., Ltd.
(formerly Suning
Appliance Co.
Ltd.)
China 2,414.0 15.5% 158.0%
17 70 Dixons Retail plc U.K. 2,362.8
e
17.8% n/a
18 3 Costco
Wholesale
Corporation
U.S. 2,100.0
e
2.1% 9.0%
19 n/a Shop Direct
Group
U.K. 2,068.4 78.0% 5.2%
20 36 Macy's, Inc. U.S. 2,000.0
e
7.2% 41.0%
21 59 The Gap, Inc. U.S. 1,927.0 NS 12.3% 23.5%
22 69 John Lewis
Partnership plc
U.K. 1,919.8 e,g 14.3% 39.0%
23 168 Next plc U.K. 1,895.3 NS 34.5% 9.5% Includes catalog sales
Top 50 e-retailers, 2012
e = estimated g = gross transaction volume NS = total non-store sales n/a = not among the Top 250 in 2012
Top
e-retailer
sales rank
FY12
Top 250
sales
rank
FY12
Name of
company
Country
of origin
FY12
e-commerce
sales
(US$ mil)
B2C
e-commerce
% of total
retail revenue
FY12
e-commerce
growth rate Comments
24 95 L Brands, Inc.
(formerly Limited
Brands, Inc.)
U.S. 1,809.0 NS 17.3% 4.0% Includes catalog sales
25 8 The Home
Depot, Inc.
U.S. 1,800.0
e
2.4% n/a
26 n/a World No. 1,
vente.privee.com
France 1,664.0 100.0% 22.0% Founded in 2001; credited with
pioneering the members-only, online
ash sale busine ss model
27 227 Williams-
Sonoma, Inc.
U.S. 1,656.3 41.0% 17.4%
28 28 J Sainsbury plc U.K. 1,580.9
e
4.3% 20.0%
29 n/a Systemax Inc. U.S. 1,458.8 NS 41.2% -14.0% Includes sales from 42 retail stores
30 n/a HSN, Inc. U.S. 1,453.7 44.5% 13.3%
31 10 Target
Corporation
U.S. 1,400.0 1.9% n/a
32 47 Kohl's
Corporation
U.S. 1,400.0
e
7.0% 40.0%
33 14 Groupe Auchan
SA
France 1,304.1 2.2% 21.1%
34 4 Carrefour S.A. France 1,286.1
e
1.3% n/a
35 86 Nordstrom, Inc. U.S. 1,269.0 10.8% 39.0%
36 24 Centres
Distributeurs E.
Leclerc
France 1,197.3 2.1% 123.0% Sales through E.Leclerc Drive (order on
internet and pick up from Drive)
37 n/a L.L. Bean, Inc. U.S. 1,100.0
e
72.3% n/a
38 27 Sears Holdings
Corporation
U.S. 1,100.0
e
2.8% n/a Estimate excludes sales on Sears
Marketplace
39 68 Toys "R" Us, Inc. U.S. 1,100.0
e
8.1% 10.0%
40 n/a Overstock.com,
Inc.
U.S. 1,099.3 100.0% 4.3%
41 n/a Ocado Group plc U.K. 1,072.8 100.0% 13.4%
42 26 Koninklijke
Ahold N.V.
Netherlands 1,067.4 2.5% 82.0%
43 7 Metro AG Germany 1,039.2 1.2% 108.0%
44 57 Marks and
Spencer Group
plc
U.K. 1,030.4 6.5% 16.6%
45 n/a Hermes S.A/
Comprafacil.com
Brazil 1,029.6
e
70.0% n/a Founded in 2003 as the e-commerce
arm of Brazilian catalog and direct
selling company Hermes S.A.
46 74 J. C. Penney
Company, Inc.
U.S. 1,020.0 7.9% -33.0%
47 158 Ofce Depot,
Inc.
U.S. 950.0
e
15.7% n/a Estimated B2C e-commerce sales
48 n/a Saks Inc. U.S. 900.0
e
28.6% 20.0%
49 11 Walgreen Co. U.S. 900.0
e
1.3% 9.9%
50 208 Neiman Marcus,
Inc.
U.S. 878.7 NS 20.2% 16.1% Includes catalog sales
Top 50 Average 32.8% 28.7%
Top 50 e-retailers, 2012
e = estimated g = gross transaction volume NS = total non-store sales n/a = not among the Top 250 in 2012
E-commerce
sales as share of
retail revenue*
E-commerce
year-over-year
sales growth*
Top 250 7.7% 24.8%
Asia/Pacic 6.2% 34.8%
Europe 5.2% 25.3%
Latin America 7.6% 19.5%
North America 11.7% 18.8%
Diversied 13.8% 21.9%
Fashion Goods 6.8% 24.4%
Fast-moving Consumer Goods 1.7% 26.3%
Hardlines & Leisure Goods 14.8% 23.8%
E-commerce activity among the Top 250, 2012
*Average for all companies in the sector with e-commerce sales

Africa/Middle East region excluded as most retailers did not report
e-commerce sales or did not have e-commerce operations
E-commerce activity for all Top 250 Global Powers of Retailing
was also analyzed. For 2012, e-commerce retail sales gures were
available for 196 companies (either reported by the company or
estimated). Of these 196 companies:
More than one-quarter (53) did not have a transactional
e-commerce website in 2012. Most of these companies were
food retailers: supermarkets were the dominant operational
format for nearly half of those without e-commerce (24 retailers);
convenience store operators and hard discount retailers were also
unlikely to sell online.
Online sales grew nearly 25 percent, on average, for Top
250 retailers with e-commerce operations. From a regional
perspective, e-commerce sales grew fastest for Asia/Pacic
retailers and slowest for North American retailers. The rate of
growth was more consistent across the product sectors. Retailers
of fast-moving consumer goods reported the highest average
growth rate in e-commerce sales, albeit from a small base.
Top 250 companies generated an average 7.7 percent of their
sales online in 2012. E-commerce accounted for the largest share
of revenue for North American retailers and the smallest for
European retailers. From a product perspective, hardlines and
leisure goods retailers derived a larger share of revenue from
e-commerce operations than did the other sectorsan average
of nearly 15 percent. E-commerce penetration was lowest
(1.7 percent) among FMCG retailers.

As retailers in mature markets look to diversify their revenues
globally, we can expect e-commerce to play an ever larger role.
The e-commerce landscape, still heavily dominated by local
and regional companies, especially in emerging markets, will
increasingly include international players as more brands attempt
to go global. But to gain acceptance with foreign consumers,
e-retailers will need to localize their offers and their operations
just like their bricks-and-mortar counterparts.
Q ratio analysis for Global Powers
For the last nine years, this report has included an analysis of the
Q ratios of publicly traded retailers from our Top 250 list. Before
examining the results of this analysis, it is worth taking a moment
to understand what the Q ratio is intended to measure.
What is the Q ratioand why do we care?
In the business environment of the early 21st century, the worlds
leading retailers face intense competition, slow growth in major
developed markets, volatile input prices (yet consumer resistance
to higher retail prices) and excess retail capacity in many developed
markets.
All of this implies that, in order for retailers to succeed, they will
have to nd ways to distinguish themselves from competitors.
That means having strong brand identity, offering consumers a
superior shopping experience and being clearly differentiated from
competitors. The latter can entail unique merchandise offerings
(including private brands), distinctive store formats and designs
and superior customer experience. The goal is to have a sufciently
unique position in the market to generate pricing power and,
consequently, strong protability. If a publicly traded retailer has
these characteristics, it is likely to be rewarded by the nancial
markets. That is where the Q ratio comes in.
The Q ratioalso known as Tobins Q after economist James
Tobinis the ratio of a publicly traded companys market
capitalization to the value of its tangible assets. If this ratio is
greater than one, it means that nancial market participants believe
that part of a companys value comes from its non-tangible assets.
These can include such things as brand equity, differentiation,
innovation, customer experience, market dominance, customer
loyalty and skillful execution. The higher the Q ratio, the greater
share of a companys value that stems from such non-tangibles.
A Q ratio of less than one, on the other hand, indicates failure to
generate value on the basis of non-tangible assets. It indicates
that the nancial markets view a retailers strategy as unable to
generate a sufcient return on physical assets. Indeed, it suggests
an arbitrage opportunity. That is, if a companys Q ratio is less than
one, theoretically a company could be purchased through equity
markets and the tangible assets could then be sold at a prot.
Which companies have high Qs and low Qs?
Returning to the top spot on the list this year is apparel retailer
H&M, which has been at or near the top of the Q ratio rankings
each of the past nine years. Its ability to differentiate its offering
and customer experience, while maintaining highly competitive
prices, is noteworthy. Thus, its position on the list is no surprise.
There are, however, some notable facts about some the other
retailers at the topand bottomof the list.
Of the top 10 retailers on the list, four are principally known
for discounting; three more are principally known as vertically
integrated apparel specialty retailers. Hence it appears that, in the
eyes of the nancial marketplace, high value is obtained through
signicant price competitiveness and/or signicant differentiation.
Half of the top 20 retailers on the Q ratio list are based in the United
States, and four are based in emerging markets. On the other hand,
six of the bottom 10and 11 of the bottom 20retailers on our
list are based in Japan. Evidently, U.S.-based retailers account for a
disproportionate share of those that have generated considerable
value through their non-tangible assets, while Japanese retailers
disproportionately represent those that have not. Still, there are
notable exceptions to both of these statements. Consider the fact that
Japans Fast Retailing is among the top retailers ranked by Q ratio.
Name of Company Country Q ratio
H & M Hennes & Mauritz AB Sweden 7.66
Tractor Supply Company U.S. 5.84
Inditex, S.A. Spain 5.82
BM Birleik Maazalar A.. Turkey 5.13
CP ALL Public Company Limited Thailand 4.98
Amazon.com, Inc. U.S. 4.93
Dollar Tree, Inc. U.S. 4.77
The TJX Companies, Inc. U.S. 4.64
Ross Stores, Inc. U.S. 4.61
Next plc U.K. 4.54
Fast Retailing Co., Ltd. Japan 4.34
Whole Foods Market, Inc. U.S. 4.12
Coach, Inc. U.S. 4.11
Open Joint Stock Company Magnit Russia 4.11
Nike, Inc. U.S. 3.90
Woolworths Holdings Limited S. Africa 3.80
Dairy Farm International Holdings Limited Hong Kong SAR 3.70
Compagnie Financire Richemont SA Switzerland 3.08
L Brands, Inc. (formerly Limited Brands, Inc.) U.S. 3.03
The Sherwin-Williams Company/Paint Stores Group U.S. 3.02
PetSmart, Inc. U.S. 2.97
President Chain Store Corp. Taiwan 2.71
Apple Inc./Apple Stores U.S. 2.66
The Home Depot, Inc. U.S. 2.63
Shoprite Holdings Ltd. S. Africa 2.62
The Gap, Inc. U.S. 2.59
Bed Bath and Beyond Inc. U.S. 2.59
AutoZone, Inc. U.S. 2.44
Belle International Holdings Limited Hong Kong SAR 2.40
Williams-Sonoma, Inc. U.S. 2.36
Top retailers by Q ratio
Q ratio by dominant format
Apparel, footwear, specialty 3.19
Non-store 2.96
Electronics 2.07
Home Improvement 1.85
Other specialty 1.53
Discount 1.25
Drug 1.22
Supermarkets 0.97
Convenience 0.81
Department 0.77
Hypermarkets 0.70
Q ratio by primary retail sector
Hardlines 2.04
Fashion 2.02
FMCG 0.91
Diversied 0.65
Q ratio by country
U.S. 1.78
Russia 1.77
Mexico 1.44
Hong Kong 1.34
South Africa 1.00
Canada 0.85
U.K. 0.83
China 0.81
France 0.76
Japan 0.49
Germany 0.36
Q ratio by sales
Top ten 1.07
Top 30 1.08
Top half 1.32
Bottom 10 0.44
Bottom 30 0.82
Bottom half 1.19
Q ratio by market cap
Top 10 2.25
Top 30 1.68
Bottom 10 0.18
Bottom 30 0.29
Highlights
This year we analyzed the nancial results of 159 publicly traded
companies on the list of the worlds top 250 retailers. The composite
Q ratio for all companies was 1.297, up from 1.115 last year and
higher than in each of the past four years. Yet this years composite
Q remains well below the 1.57 recorded in 2008, just before the start
of the global nancial crisis. Roughly half of the companies on the list
have Q ratios above one, while roughly half are below one.
Interestingly, it turns out that the bigger companies seem to have
higher Q ratios, and that is true whether one denes big as a high
level of sales or high market capitalization. That is, companies with
higher revenue are likely to have higher Q ratios than companies
with smaller turnover. Plus, companies with a high market value
are likely to have higher Q ratios than companies with low market
values. In this sense, it appears, size does matter.
The retail formats with the highest composite Q ratios are apparel/
footwear, electronics specialty and non-storealthough this last
category consists of only two companies and is dominated by
Amazon.com.
Apparel retailers have become extremely important global players,
with a combined market capitalization more than three times
higher than that of the department store segment. The composite
Q ratio of apparel retailers (3.192) is nearly four times higher than
that of department stores (0.768). Yet, since last year, the
Q ratio for department stores has increased much faster than that
of apparel stores. Evidently, department stores have worked on
improving their brand equity.
The electronics specialty segment is dominated by Apple, which
accounts for 92 percent of the market capitalization of the
electronics companies on our list. The lowest composite Q ratio
belongs to hypermarkets, a segment that has faced considerable
competitive challenges in recent years. Moreover, it is a format
where clear differentiation is difcult and where price competition
is brutal, so the low Q ratio is not entirely surprising.
Interestingly, the composite Q ratio for discounters is far higher
than that of hypermarkets. Perhaps this reects the strength of
hard discounters like BIM and U.S.-based dollar stores like Family
Dollar and Dollar Tree.
Of the four merchandise categories, the two with the highest
composite Q ratios are hardlines (2.035) and fashion (2.025). Yet
given the dominance of Apple in the hardlines category (accounting
for nearly half the market capitalization), it is worth noting that
fashion has the highest composite Q ratio when Apple is excluded
from this analysis. As usual, the category of diversied retailers has
the lowest composite Q ratio. Retailers specializing in fast-moving
consumer goods (FMCG) have a composite Q ratio below one.
We also analyzed the composite Q ratios of countries, provided that
there are three or more retailers from a given country. The weakest
composite Q ratios are those of Germany and Japan; the highest
are found in the U.S., Russia and Mexico.
By region, there is a stark divide between North America (1.73) and
the rest, ranging from 0.9 for Asia Pacic (minus Japan) to 1.106 for
Latin America. Moreover, the high score for North America is due
to the higher Q ratio for the U.S., as Canada has a relatively low
Q ratio.
There will likely be debate as to the reason for the relatively high Q
ratio of U.S.-based retailers. Some might say it reects strong brand
equity and successful transition to online retailing; others, however,
might argue that it reects the inated values of U.S. equities in
general, itself the result of aggressive U.S. monetary policy.
Study methodology and data sources
Companies were included in the Top 250 Global Powers of
Retailing list based on their non-auto retail revenue for scal year
2012 (encompasses scal years ended through June 2013). To
be included on the list, a company does not have to derive the
majority of its revenue from retailing, so long as its retailing activity
is large enough to qualify.
A number of sources were consulted to develop the Top 250 list. The
principal data sources for nancial and other company information
were annual reports, SEC lings and information found in company
press releases and fact sheets or on company 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. retailers came from Planet Retail,
a leading provider of global intelligence, analysis, news and data
covering more than 10,000 retail operations across 211 markets.
Planet Retail has ofces in London, Frankfurt, New York, Tokyo,
Hong Kong and Qingdao, China. For more information please visit
www.planetretail.net.
Group revenue reects the consolidated net revenue of a retailers
parent company, whether or not that company itself is primarily a
retailer. Similarly, the income/loss gure reects the consolidated
results of the parent organization. If a privately held company
reports gross turnover only, this gure is used and footnoted
accordingly as g. Revenue gures do not include operations in
which a company has only a minority interest.
The retail revenue gures in this report reect only the retail
portion of the companys consolidated net revenue. As a result,
they may reect adjustments to reported revenue gures to exclude
non-retail operations. Retail revenue includes foodservice sales
if foodservice is sold as one of the merchandise offerings inside
the retail store or if restaurants are located within the companys
stores, but excludes separate foodservice/restaurant operations.
Retail revenue also includes sales of services related to the
companys retail activities, like alterations, repair, maintenance and
installation; fuel sales; and membership fees.
Revenue gures 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 revenue
includes wholesale sales to such networked operationsboth
member stores and other supplied stores. Retail revenue includes
wholesale sales to afliated/member stores but excludes traditional
wholesale or other business-to-business revenue (except where
such revenue is derived from retail stores) where it is possible to
break them out.
In order to provide a common base from which to rank companies
by their retail revenue results, scal year 2012 revenue (and prots)
for non-U.S. companies were converted to U.S. 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 companys scal year was used to
convert that companys results to U.S. dollars. The 2012 year-over-
year growth rate and the 2007-2012 compound annual growth
rate (CAGR) for retail revenue, however, were calculated in each
companys local currency.
Group nancial results
This report uses sales-weighted composites rather than simple
arithmetic averages as the primary measure for understanding
group nancial results. Therefore, results of larger companies
contribute more to the composite than do results of smaller
companies. Because the data has been converted to U.S. dollars
for ranking purposes and to facilitate comparison among groups,
composite growth rates also have been adjusted to correct for
currency movement. While these composite results generally
behave in a similar fashion to arithmetic averages, they provide
better representative values for benchmarking purposes.
Group nancial results are based only on companies with data,
and not all data elements were available for all companies. Top
250 companies that did not derive the majority of their revenue
from retail operations were excluded from the calculation of group
protability ratios as their consolidated prots mostly reect non-
retail activities.
It should also be noted that the nancial information used for each
company in a given year is accurate as of the date the nancial
report was originally issued. Although a company may have
restated prior-year results to reect a change in its operations or
as a result of an accounting change, such restatements are not
reected in this data.
This study is not an accounting report. It is intended to reect
market dynamics and their impact on the structure of the retailing
industry over a period of time. As a result of these factors, growth
rates for individual companies may not correspond to other
published results.
Contacts
Retail contacts for Deloitte Touche Tohmatsu Limited (DTTL) and its member rms
DTTL Global Consumer Business
Industry Leader
Antoine de Riedmatten
Deloitte Touche Tohmatsu Limited
[email protected]
Retail Leader
Vicky Eng
Deloitte Consulting LLP
[email protected]
North America
Canada
Ryan Brain
[email protected]
United States
Alison Paul
[email protected]
Europe, Middle East and Africa
(EMEA)
Belgium
Koen De Staercke
[email protected]
Czech Republic/Eastern Europe
Aaron Martin
[email protected]
Denmark
Jesper Povlsen
[email protected]
East Africa
John Kiarie
[email protected]
Finland
Kari Ekholm
kari.ekholm@deloitte.
France
Stephane Rimbeuf
[email protected]
Germany
Karsten Hollasch
[email protected]
Greece
Dimitris Koutsopoulos
[email protected]
Ireland
Kevin Sheehan
[email protected]
Israel
Israel Nakel
[email protected]
Italy
Dario Righetti
[email protected]
Netherlands
Erik Nanninga
[email protected]
Poland
Dariusz Kraszewski
[email protected]
Portugal
Lus Belo
[email protected]
Russia/CIS
Alexander Dorofeyev
[email protected]
South Africa
Rodger George
[email protected]
Spain
Juan Jose Roque
[email protected]
Sweden
Lars Egenaes
[email protected]
Switzerland
Howard Da Silva
[email protected]
Turkey
Ozgur Yalta
[email protected]
Ukraine
Andriy Bulakh
[email protected]
United Kingdom
Nigel Wixcey
[email protected]
West Africa
Alain Penanguer
[email protected]
Latin America
Latin America Consumer Business
Leader
Reynaldo Saad
Deloitte Brazil
[email protected]
Argentina/LATCO
Daniel Varde
[email protected]
Brazil
Reynaldo Saad
[email protected]
Chile
Cristian Alvarez
[email protected]
Mexico
Pedro Luis Castaeda
[email protected]
Asia Pacic
Asia Pacic Consumer Business
Leader
Haruhiko Yahagi
Deloitte Japan
[email protected]
Australia
Simon Cook
[email protected]
China
David Lung
[email protected]
Indonesia
Jose Sabater
[email protected]
Japan
Haruhiko Yahagi
[email protected]
Korea
Jae Hoon Lee
[email protected]
Malaysia
Jeffrey Soo
[email protected]
New Zealand
Lisa Cruickshank
[email protected]
Singapore
Eugene Ho
[email protected]
Taiwan
Jason Ke
[email protected]
Thailand
Manoon Manusook
[email protected]
Vietnam
Nam Hoang
[email protected]
Authors
Ira Kalish
DTTL Chief Global Economist
[email protected]
Scott Bearse
[email protected]
Special thanks to:
Cara OConnor
[email protected]
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network
of member rms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed
description of the legal structure of Deloitte Touche Tohmatsu Limited and its member rms.
Deloitte provides audit, tax, consulting, and nancial advisory services to public and private clients spanning multiple industries.
With a globally connected network of member rms in more than 150 countries, Deloitte brings world-class capabilities
and deep local expertise to help clients succeed wherever they operate. Deloittes approximately 170,000 professionals are
committed to becoming the standard of excellence.
Disclaimer
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member rms, or their
related entities (collectively, the Deloitte Network) is, by means of this publication, rendering professional advice or services.
Before making any decision or taking any action that may affect your nances or your business, you should consult a qualied
professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who
relies on this publication.
2014 Deloitte Global Services Limited
Designed and produced by The Creative Studio at Deloitte, London. 31846A
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Global Powers of Retailing 2014

Retail Beyond begins

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