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1、Global Powers of Retailing 2023Revenue growth and continued focus on sustainabilityFebruary 2023Foreword by Evan Sheehan 3Top 250 quick statistics 4Global economic outlook by Dr.Ira Kalish 5Top 10 highlights 7Sustainability in retail 15Future of the Store 30Top 250 36Geographic analysis 51Product se
2、ctor analysis 58New entrants 62Fastest 50 64Study methodology and data sources 69References 71Contacts 73 02Global Powers of Retailing 2023|ContentsContentsFeatured retail executive interviewsCaroline LaurieBurberryDaniella VegaAhold DelhaizeJavier LosadaInditexMaureen EricksonLululemonVincent Vivie
3、rsPick n PayDonald McDonaldBrown ThomasGlobal Powers of Retailing 2023|ForewordForewordIn a year of strong year-on-year growth in retail revenue across the top 250,we see that sustainability remains high on the agenda.Several players are working on the resale of slightly used goods and we see many t
4、echnology-enabled innovations.Successful retailers combine technology with the human factor to provide optimal customer experience.Among the Fastest 50,the main drivers of growth were the luxury brands,e-commerce providers and department stores.Evan SheehanGlobal Retail,Wholesale&Distribution Leader
5、 at Deloitte0304Global Powers of Retailing 2023|Top 250 quick statisticsGlobal Powers of Retailing 2023Top 250 Retailers show significant revenue growthTop 250 RetailersUS$45 bilionMinimum retail revenueUS$22.6 billionAverage retail revenueUS$572.7 billionMaximum retail revenueYear-on-year revenue g
6、rowth of Top 250 retailersComposite net profit margin of Top 250 retailers*financial years ending within 12 months from 1 July 2021 to 30 June 2022*financial years ending within 12 months from 1 July 2020 to 30 June 2021Retailers prepare for the future of the store“Customers love their personal expe
7、rience at our experiential store,and weve ensured that our digital channels support this in-store experience.”Donald McDonald,Managing Director of Brown Thomas73%of Consumer CXOs have increased investments in sustainability over the last year“Our Like New program allows guests to extend the life of
8、our products by buying lululemon Like New or trading in lululemon gear when they are done with it.”Maureen Erickson,Senior Vice President Guest Innovation at lululemonHardlines and leisure goodsApparel and accessories DiversifiedFMCGApparel and accessories retailers showed fastest year-on-year growt
9、h31.3%15.6%9.3%5%05Global Powers of Retailing 2023|Global economic outlookGlobal economic outlookInflation should recede.The factors that drove inflation in 2021-22 are already reversing.These factors included the following:supply chain disruption,increases in commodity prices,and expansive fiscal a
10、nd monetary policy.Moreover,inflation has already peaked in the United States and may soon peak in Europe.Inflation remains moribund in Japan and China.Expect a rapid decline in inflation in the United States and a more moderate decline in Europe.The expectation of this pattern is already embedded i
11、n bond yields,which is why they remain relatively low.Supply chains should stabilize.Weakening global demand combined with increased capacity to produce and distribute manufactured goods are already causing a decline in delays,shortages,and costs of shipping.Once the COVID-19 pandemic situation stab
12、ilizes in China,supply chains in China will also normalize.This may help to ease inflation and remove bottlenecks that inhibit output in some industries.On the other hand,fraught political relations between China and the United States may lead many companies to buy an insurance policy against politi
13、cal risk by diversifying supply chains.This could likely mean further outflows of capital from China and more investment in supply chain processes in Southeast Asia,India,Central Europe,and especially Mexico.Labor markets should remain tight.In many countries,labor has been in short supply as the wo
14、rld recovers from the COVID-19 pandemic.This has been due to reduced labor force participation,continued COVID-19-related illnesses,and a sharp decline in migration.These factors are not likely to change soon.Thus,even amidst concern about recession,job growth continues to be relatively strong and u
15、nemployment low.Many companies,fearful of persistent shortages of labor,are probably hiring to hoard labor that might be needed when the economy rebounds.Notably,despite tightness in the labor market,wages have failed to keep pace with inflation in most advanced economies.The result has been weaker
16、consumer spending.In 2023,as inflation recedes,it is likely that wage growth will ultimately exceed inflation.This should boost consumer spending.It may also put pressure on businesses to accelerate investment in labor saving technology.Central banks should stop tightening.We know that monetary poli
17、cy acts with a lag.Thus,it is possible that the sharp increase in benchmark interest rates in 2022 was sufficient to quell future inflation.Still,it is likely that major central banks will continue to raise rates in early 2023,if only to anchor expectations of inflation.They may likely stop this pro
18、cess in the first half of the year and wait to see the fruits of their labor.Central banks will likely start to reduce rates in 2024.The US may avoid recession.Sixty percent of the US population believes that the country is already in recession.And yet the economy has shown remarkable resilience.Des
19、pite declining real wages,real consumer spending has grown as some consumers have dipped into their saving.Despite higher borrowing costs,business investment has grown as many businesses have dipped into their cash reserves and focused on the longer term.The only major sector to experience a sharp c
20、ontraction has been housing,largely due to higher mortgage interest rates.Without a doubt,US growth in 2023 may be slower than in 2022 due to tightening monetary and fiscal policy.Yet a recession might be avoided due to declining energy prices,strong employment growth,and easing of supply chain stre
21、ss.Still,a recession remains a possibility.By Dr.Ira KalishChief Global Economist,Deloitte GlobalJanuary 2023What should we expect in 2023?It seems likely that the new year may,in part,be characterized by a reversal or stabilization of some of the events of 2022.These could include a rapid increase
22、in inflation,surges in commodity prices,tightening of monetary policy,and substantial supply chain disruption.Some trends,however,are likely to persist.These include tight labor markets,the biggest land war in Europe since 1945,a slowdown of Chinas economy,increased use of industrial policy and sanc
23、tions,and economic disruption from climate change.Here,then,are predictions for the new year:06Global Powers of Retailing 2023|Global economic outlookEurope may experience recession.Europe is different from the United States.As real wages have fallen,real consumer spending has fallen.And,although en
24、ergy prices have fallen from their peaks,natural gas prices remain historically elevated,thereby helping to fuel inflation and reduce purchasing power for consumers and businesses.The energy shock,a result of the conflict in Ukraine,could play the leading role in driving a recession in Europe.In add
25、ition,tightening of monetary policy by the ECB and the Bank of England will play a role.Plus,although many European governments are offering large subsidies to offset high energy prices,the trajectory of fiscal policy remains contractionary.Although European governments have taken strong measures to
26、 protect their economies from the energy shock,it is likely that electricity prices could remain relatively elevated for a prolonged period.Thus,many companies in heavy industry,which used to benefit from affordable Russian energy,are increasingly looking outside of Europe for investment opportuniti
27、es.This could have a negative impact on the future of European manufacturing.China may rebound only modestly.With the relaxation of pandemic-related restrictions,China is likely to see a modest rebound in economic activity in 2023 but not immediately.For now,the massive outbreak of infections is sup
28、pressing mobility and production,the result of which is likely to be temporarily suppressed economic activity.Yet once this cycle of the outbreak recedes,it is likely that pent-up consumer demand will boost spending.Still,China faces several headwinds that may restrain growth in 2023.These include a
29、 troubled property market,weaker global demand,an outflow of capital by global businesses,and a fraught relationship between China and the West that involves restrictions on cross-border trade and investment.Japan should stabilize.Japans economy is accelerating from a low base as COVID-related restr
30、ictions decrease and pent-up demand is unleashed.Still,Japans economy may face headwinds from a weakened global economy.Thus,growth is likely to remain modest.Meanwhile,inflation has accelerated from a low base due to supply chain disruption and higher energy prices.The Bank of Japan has partially r
31、eversed its easy monetary policy,thereby providing a boost to the value of the yen.India should grow strongly.In 2023,India may become the most populated country in the world,surpassing China.The IMF estimates that this could happen in April.In the years to come,while Chinas population declines,Indi
32、as should continue to grow well into the second half of this century.This demographic shift could have implications for the global economy.If for no other reason than demographics,China may grow more slowly while Indias economy may grow faster as domestic consumer demand becomes a prominent growth d
33、river.This is already the case.Indeed,India is currently one of the fastest growing major economies in the world.It is importing relatively affordable oil from Russia,thereby helping to limit the impact of the energy shock on its economy.Since trade as a share of GDP is lower than in most countries,
34、this should shield India from the negative consequences of a global slowdown.The rate of inflation,although relatively high,has fallen recently.However,since the Reserve Bank of India(RBI)has been raising its benchmark rate since April 2022,there may be a modest deceleration in the rate of growth in
35、 2023 due to its impact on demand.07Global Powers of Retailing 2023|Top 10 highlightsTop 10 highlightsTop 250 rankChange in rankName of company Country/Geography of originFY2021 retail revenue(US$M)FY2021 retail revenue growthFY2021 net profit margin1FY2021 return on assets FY2016-2021 retail revenu
36、e CAGR2#countries/geographies of operation%retail revenue from foreign operations1 0Walmart IncUnited States 572,754 2.4%2.4%5.7%3.3%2431.3%2 0A,Inc.United States 239,150 12.0%7.1%7.9%20.4%2133.2%3 0Costco Wholesale CorporationUnited States 195,929 17.5%2.6%8.6%10.5%1227.8%4 0Schwarz GroupGermany 15
37、3,754 5.5%n/an/a7.8%3373.0%5 0The Home Depot,Inc.United States 151,157 14.4%10.9%22.9%9.8%38.1%6 0The Kroger Co.United States 136,971 4.1%1.2%3.4%3.5%10.0%7 2JD.com,IncChina 126,387 25.1%-0.5%-0.9%28.0%10.0%8 -1Walgreens Boots Alliance,Inc.United States 122,045 3.7%1.9%3.1%4.7%68.2%9 -1Aldi Einkauf
38、GmbH&Co.oHG and Aldi International Services GmbH&Co.oHGGermany 120,947 e-0.4%n/an/a4.8%1972.8%10 0Target CorporationUnited States 104,611 13.2%6.6%12.9%8.5%10.0%Top 10 1,923,704 8.0%4.1%7.5%7.9%12.127.9%Top 2505,650,478 8.5%4.3%5.9%5.7%11.423.4%Top 10 retailers,FY2021Top 10 share of Top 250 retail r
39、evenue34%66%Source:Deloitte Global.Global Powers of Retailing 2023.Analysis of financial performance and operations for fiscal years ended between 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.1 Net profit margin
40、 based on total consolidated revenue and net income 2 Compound annual growth ratee=estimaten/a=not available08-5%0%5%10%15%20%25%30%35%Top 250Top 10Walmart Inc.A Inc.Costco Wholesale CorporationSchwarz GroupThe Home Depot,Inc.The Kroger Co.JD.com,IncAldi Einkauf GmbH&Co.oHG and Aldi International Se
41、rvices GmbH&Co.oHGTarget CorporationWalgreens Boots Alliance,Inc.FY 2020FY 20215.2%8.5%12.4%8.0%6.7%2.4%12.0%34.8%10.0%5.5%19.9%14.4%8.3%4.1%25.1%1.5%3.7%8.1%13.2%-0.4%19.8%27.6%9.2%17.5%Global Powers of Retailing 2023|Top 10 highlightsRetail revenue year-on-year growthSource:Deloitte Global.Global
42、Powers of Retailing 2023.Walmart IncRetail revenueFor a second consecutive year,in terms of retail revenue,Walmart leads the worlds Top 250 global retailers.The companys Retail revenue grew by 2.4%year-on-year in FY2021 to US$573 billion,building on the retailers strong performance reported in FY202
43、0.Higher consumer spending,in part due to government stimulus packages,led to strong sales revenue in its US Sams Club(a membership-only retail warehouse club)and e-commerce segments.Walmart Internationals Retail revenue fell by 16.8%in FY2021,as a result of two divestments:Asda Stores Ltd,which was
44、 sold to Issa Brothers,and Seiyu Group,which was sold to KKR and Rakuten.Both deals closed in Q1 FY2022.Buoyant sales in Walmarts remaining international markets and favorable foreign exchange rates which contributed US$4.5 billion,offset further declines in Walmarts international segment.In the fac
45、e of mounting losses in the Indian market,e-commerce giant Flipkart,acquired by Walmart for US$16 billion in 2018,reined in M&A activity and new hires,despite raising US$3.6 billion in funding the previous year.1Chinas online retail specialist JD.com rose two positions to seventh place in the Global
46、 Powers of Retailing Top 10 ranking in FY2021 as a result of 25.1%growth in retail revenue.No new retailers entered the Top 10 rankings in FY2021.Despite the easing of pandemic-related restrictions,the retail sector experienced ongoing disruptions during FY2021.The vast majority of retailers posted
47、both positive revenue growth and net profit margins.The top retailers continued to support their ESG strategies,through measures such as setting ambitious carbon emissions targets,reducing single-use plastics and providing consumers with the tools to make environmentally-conscious shopping decisions
48、.This section presents an analysis of the Top 10 retailers in the Top 250 ranking,based on various themes including retail revenue,mergers and acquisitions,e-commerce,technology,Environmental,Sustainability and Governance(ESG),and net profit margins.The specific information covered for each retailer
49、 depends on the information that is publicly available.09Global Powers of Retailing 2023|Top 10 highlightsMergers&AcquisitionsFollowing the acquisition of augmented reality(AR)company Zeekit in 2021,Walmart launched its Be Your Own Model service on its Walmart iOS app in September 2022,where users c
50、an model clothing items virtually using a photo of themselves.2 This followed Walmarts previous launch of several other AR features in June 2022,which included enabling users to place virtual furniture in their homes,as well as helping customers make purchasing decisions in-store.3 In the same month
51、,the company announced the acquisition of Memomi,an AR optical technology company that enables customers to try on virtual glasses in-store4.E-commerceWalmarts e-commerce sales grew by 12.8%in FY2021,following 63.5%growth in the previous year.With easing of COVID-19 pandemic restrictions,consumers r
52、eturned to the physical retail channel,which affected e-commerce sales.John Furner,head of Walmarts US operations,has commented:We definitely saw a traffic shift back into stores from e-commerce”.5 However,Walmart remains committed to developing its digital channels.Walmart currently operates over 8
53、,000 pickup and 6,000 delivery locations as of FY2021.It maintained its investments in store refurbishments,which included a US$3.3 billion investment towards renovation of its stores in 2022,as part of a strategy to blend online and in-store shopping experiences.Walmarts development of its omnichan
54、nel capabilities and its interest in engaging with the technologically-native Gen Z and millennial age groups led to the launch of the Walmart Creator app,a new platform that helps enable content creators to monetize shoppable products from the retailer and to earn a commission for products sold,a c
55、oncept similar to Chinas Douyin social media e-commerce platform.6 While the platform is currently in beta-testing,Walmart Creator is expected to launch fully in 2023.Environmental,Sustainability and Governance Walmarts FY2022 ESG summary report discloses that it had reached the halfway milestone fo
56、r Project Gigaton,which aims to reduce or avoid one billion metric tonnes of Scope 3 emissions from its supply chain by 2030.In April 2022,Walmart also launched a Circular Connector platform with the aim to“bridge the gap between companies searching for more sustainable packaging ideas and those tha
57、t offer them”.7Net profit marginIn FY2021,Walmarts net profit margin fell by 0.1 percentage points to 2.4%despite a consolidated net income growth of 1.7%.Gains associated with higher revenue were offset by three factors:the US$2.4 billion loss of extinguishment of debt,due to the early retirement o
58、f certain higher-rate long-term debt;a US$3.0 billion loss from fair value changes on Walmarts equity investments;and losses associated with the divestment of some international operations.AmazonRetail revenueAmazons Retail revenue(first party retail sales only)grew by 12%in FY2021,following excepti
59、onal growth of 34.8%in FY2020.The retailer reported double-digit sales in both its North American and International segments.This was the result of higher unit sales,driven partly by efforts to reduce product prices,and fluctuations in exchange rates,which had a US$3.8 billion positive impact in FY2
60、021.These increases in North America and International Retail revenues were offset partly by fulfilment network inefficiencies and supply chain constraints.8The launch of Amazon Poland in 2021,was followed by Amazon Belgium in October 2022,expanding the companys market footprint further across Europ
61、e.As part of Amazons commitment to support local business,the company launched“Brands of Belgium”,an Amazon marketplace which features local retailers and their products.9 Additionally,in January 2022,Amazon launched its first bricks and mortar fashion outlet(Amazon Style)in California.This pilot st
62、ore has built technology into the consumer shopping experience through the Amazon Shopping App,which provides machine learning-driven recommendations,and touch-screens located around the store.10Merges&AcquisitionsAmazon made acquisitions totalling US$496 million in FY2021.However,these did not incl
63、ude any retail-related deals.The company turned its attention to acquiring technology companies such as Cloostermans,a mechatronics company,to provide robotic automation in Amazon warehouses11 and iRobot,the producers of Roomba,a leading robot vacuum cleaner.12 Amazon also pushed further into the he
64、althcare sector through the acquisition for US$3.9 billion of One Medical,a technology-focused healthcare provider.13Environmental,Sustainability and Governance Amazon is currently the worlds largest corporate buyer of renewable energy.14 In FY2021,the company announced the launch of 71 new renewabl
65、e energy projects,making a total of 379 across 21 countries as of September 2022.Amazons global renewable energy portfolio is forecast to generate 50GWh of clean energy thanks to the addition of these new projects.This is part of Amazons goal to reach net-zero carbon emissions by 2040.15Net Profit M
66、arginAmazons net profit margin in FY2021 was 7.1%,the second-highest net profit margin among the Top 10 after The Home Depot,and up 1.6 percentage points on FY2020.10Global Powers of Retailing 2023|Top 10 highlightsCostcoRetail revenueIn FY2021,Costcos Retail revenue grew by 17.5%,(compared to 9.2%i
67、n FY2020),making it the second-fastest growing retailer in the Top 10 after JD.com.The growth was driven by a 16%increase in comparable sales,in addition to the opening of 20 new warehouses(12 in the US,four in Canada and four in other countries).In FY2022,the company has already increased the total
68、 by another 13(net).In FY2021,the revenue generated from membership fees grew by 9%,driven by sign-ups and upgrades to executive members.There was a shift in sales away from core merchandise categories(food and sundries,and fresh food)toward ancillary and other businesses.Mergers&AcquisitionsIn late
69、 2022,Costco continued its international expansion.Between September and October,the retailer opened its first stores in New Zealand and Sweden.Other investment activities included Costcos purchase in mid-2022 of the remaining 45%stake in its joint venture Costco-Taiwan for US$1.05 billion.It was an
70、nounced in late 2022 that Costco would be opening its third and fourth outlets in China,following the addition of a second in December 2021.E-commerceE-commerce accounted for 7%of total sales at Costco,up from 6%the previous year,despite a marginal slowdown to 44%in digital sales growth compared to
71、50%in FY2020.The formation of Costco Logistics from the earlier acquisition of final-mile logistics company Innovel in 202016 improved the retailers delivery times and reduced prices for customers.Net Profit MarginCostcos net profit margin increased by 0.2 percentage points in FY2021 to 2.6%,the fir
72、st change in two years.Schwarz GroupRetail revenueThe privately-owned retailer Schwarz Group increased its Retail revenues by 5.5%in FY2021,following 10%growth in FY2020,due in part to the addition of an estimated 550 stores.While contributing only 1%of Retail revenue,online sales across the group a
73、mounted to US$1.9 billion.The group invested US$9 billion in organic growth through store expansion,digitalization and branch modernization.Lidl,Schwarzs largest retail brand,active in 31 countries,operated about 12,000 stores globally in FY2021,an increase from 11,550 in FY2020.The brands retail sa
74、les grew by 4.7%to US$114.3 billion in FY2021.While the majority of Lidl retail sales are derived from its bricks and mortar stores,the retailer also operates an e-commerce service in 11 countries,and offers a Lidl Plus program as part of its omnichannel strategy.Mergers&AcquisitionsKaufland,Schwarz
75、 Groups other retail brand,Achieved growth in Retail revenues of 7.4%to US$30.7 billion in FY2021.Kaufland had about 1,450 stores in Europe in FY2021,compared to an estimated 1,350 in FY2020.In FY2020,Kaufland was cleared to acquire 92 of Metro Reals hypermarkets17,and in early 2022,the German Feder
76、al Cartel Office cleared the retailer to acquire an additional 13 Real stores.18Environmental,Sustainability and Governance As part of its sustainability strategy,Schwarz Group reported in FY2021 that its use of plastic in private label product packaging was reduced by 18%across countries and retail
77、 divisions.The groups goal is to make a 20%reduction by 2025.It also reported that,on average and across all countries,14%of the plastics it used were from recycled sources19.Schwarz Group announced that it would be expanding its e-charging network for electric cars at its stores to a total of 13,00
78、0 charging points20.In order to inform in-store customers better about the environmental impact of their shopping choices,Lidl launched a pilot study for a sustainability eco-score label in August 2021.The label was added to select products,making Lidl one of the first major retailers to employ such
79、 a system.The Home DepotRetail revenueFor the second year in a row,The Home Depot reported the third-highest Retail revenue growth among the Top 10 retailers.The companys revenues grew by 14.4%to US$151.2 billion in FY2021,following a record-breaking 19.9%increase in FY2020.Retail sales were boosted
80、 by a positive shift in the average ticket price and buoyant sales in the HD Supply division(a distributor of maintenance,report and operations products),which was acquired in Q4 FY2020.E-commerceOnline sales through both click-and-collect and delivery grew by 9.4%and accounted for 13.7%of net sales
81、.Consumers continue to use digital platforms for their shopping,despite the reopening of physical stores.The company is currently focusing on bigger-ticket B2B Pro Channel online sales by providing more personalized online experiences and business management tools21.Positive retail growth was in par
82、t assisted by a weaker US dollar relative to international currencies,which provided a US$760 million revenue boost in FY2021.TechnologyHome Depots implementation of new in-store and at-home technologies continues to blur the lines between the physical and the virtual worlds.The company has dipped i
83、ts toes into the world of augmented reality(AR),through a relationship with technology company Roomvo,giving customers the chance to test different flooring materials virtually in their homes22.Furthermore,11Global Powers of Retailing 2023|Top 10 highlightsHome Depot has introduced 125,000 new mobil
84、e devices,called hdPhone,into its stores:these provide customers with digital tools to help them in their bricks and mortar shopping experience23.Environmental,Sustainability and Governance Home Depot announced in 2021 that it had joined RE100,a global collaborative initiative led by Climate Group a
85、nd CDP(Carbon Disclosure Project)that is driving the transition to renewable energy sources24.This came after the company had declared in July 2021 its own target of reaching 100%renewable energy for its facilities by 203025.Net Profit MarginThe Home Depot posted the highest net profit margin among
86、the Top 10 retailers in FY2021:this grew by 1.2 percentage points to 10.9%.It also recorded the highest return on assets(22.9%)among the Top 10 retailers,thanks to its highly efficient use of space in store.KrogerRetail revenueKrogers Retail revenues grew by 4.1%in FY2021,following 8.3%growth in FY2
87、020.The company operates,either directly or through subsidiaries,in 2,726 stores across the US.Excluding sales of fuels,which account for 10.6%of sales,growth in revenue was flat relative to FY2020.Digital sales,which include pickup,delivery,ship and pharmacy e-commerce sales,fell by 3%in FY2021,com
88、pared to the explosive growth in sales of 116%in FY2020,as customers returned to shopping in physical stores.Mergers&AcquisitionsKroger has announced a US$24.6 billion bid to merge with another Top 250 retailer,Albertson Companies.26 Albertson comprises 2,200 supermarkets across 20 banners in the US
89、 and is ranked 18th in the FY2021 Top 250 retail rankings.The deal is expected to close in 2024 after clearing federal antitrust regulations and legal challenges.The proposed merger will significantly enhance Krogers ability to serve a larger consumer base and increase its proximity to customers,the
90、reby enabling the delivery of high-quality,affordable food products to a wider range of individuals.Environmental,Sustainability and Governance In FY2021,Kroger launched its Thrive Together strategy,which aims to drive positive ESG changes.Initiatives include reducing GHG(greenhouse gas)emissions by
91、 30%by 2030,relative to a 2018 baseline.As a socially responsible retailer,the company has made it a priority to help address food insecurity and has set a goal of donating three billion meals to underserved communities by 2025,in addition to increasing the proportion of surplus food donated from re
92、tail operations to 45%.In 2021,the company successfully contributed approximately 546 million meals to its communities27.Net Profit MarginKrogers FY2021 net profit margin fell by 0.8 percentage points,to 1.2%.JD.comRetail revenueDespite the challenging retail environment in China in FY2021 caused by
93、 frequent COVID-19 lockdowns,the online retailer was the fastest-growing Top 10 company in FY2021,expanding its retail revenues by 25.1%to US$126.4 billion.Consequently,JD.com has risen from ninth to seventh position in this years Top 10.Strong growth was driven by sales of general merchandise,exclu
94、ding electronics,which increased by 29%.In addition,the company achieved a 21%increase to 569.7 million in active customer accounts,boosting total retail sales.Mergers&AcquisitionsThe company did not complete any retail acquisitions or mergers in FY2021.However,in March 2021,JD Group acquired 52%of
95、Dada Group,a Chinese crowdsourcing delivery company.Additionally,in July 2022,JD Group announced the acquisition of China Logistics Property Holdings,one of the largest logistics infrastructure developers and operators in China,for US$2.1 billion.28 In addition,in the same quarter,JD Logistics compl
96、eted the acquisition of a controlling interest in Deppon,another China-based logistics company.TechnologyIn September 2022,JD Super,JD.coms omnichannel supermarket,announced the launch of a new growth strategy,BOOST.The BOOST strategy focuses on broadening its range of users by expanding to rural re
97、gions,optimizing the use of its omnichannel technology and opening its platform to a wider range of collaborations.This follows JD.coms partnership with Dada Group(Chinas leading on-demand delivery and retail platform)in October 2021.The two organizations agreed a joint venture,Shop Now,an on-demand
98、 consumer retail service that operates in the JD app.29 In February 2022,JD.com acquired additional Dada Group shares,raising the companys controlling interest from 46%to 52%.Environmental,Sustainability and Governance JD.com released its second ESG report in May 2022.JD logistics has set a goal to
99、reduce its carbon emissions by 50%by 2030,relative to 2019 levels.The company has promised to invest US$16.8 billion to upgrade its supply chain as part of its“Green Stream Initiative”.In FY2021,the company was selected by Global Compact China Network in FY2021 as one of the“Best Practices for Enter
100、prises to Achieve Sustainable Development Goals 2021”.30Net Profit MarginDespite its strong retail revenue growth,JD.com did post a negative net profit margin of-0.5%.12Global Powers of Retailing 2023|Top 10 highlightsWalgreen Boots Alliance Retail revenueWalgreens Boots Alliances(WBA)Retail revenue
101、s grew by 3.7%in FY2021,2.2 percentage points more than in FY2020,to US$122.0 billion.In June 2022,WBA announced it was no longer pursuing the sale of Boots UK.US sales increased by 4%in FY2021,thanks to a 5.5%increase in pharmacy sales,which represents a 75.8%share of WBA sales in the US.A shift to
102、wards cheaper generic drugs and away from more expensive branded products had a negative effect on US prescription sales but by less than in FY2020.Retail sales,which fell by 0.4%in FY2021,accounted for 24.2%of US sales.Any growth driven by health and wellness trends and at-home COVID-19 tests was o
103、ffset in part by declines in tobacco sales.Strong performance in Boots UK and in Latin America and Ireland during H2 FY2021 offset declines seen earlier in the year due to the adverse effect of COVID-19 restrictions.Mergers&AcquisitionsIn August 2022,WBA completed the acquisition of 55%of CareCentri
104、x for US$330m.This will help enable the retailer to expand its healthcare capabilities into the home setting31.In September 2022,it announced that it was accelerating plans to acquire the remaining 30%of shares of Shields Health Solutions for US$1.37 billion.In November 2022,WBAs VillageMD acquired
105、Summit Health-City MD for US$8.9 billion and in the same month,WBA put up 10m shares in AmerisourceBergen Corporation for sale,reducing its stake in the company from 26%to 20%32.Net Profit MarginsWalgreen Boots Alliance posted a net profit margin of 1.9%in FY2021.Aldi Retail revenueAldi registered a
106、 marginal decline in retail sales in FY2021 after strong growth of 8.4%in FY2020.Aldi Sud achieved identical sales of US$72.5 billion in both FY2021 and FY2020;however the number of stores it operated increased from 6,744 to 6,972 with most stores openings in the US,UK and Italy.Aldi Sud also opened
107、 16 stores in China,bringing the total number to 26,and plans to open more in the future.Aldi Suds stores in China are becoming increasingly digitized,offering delivery services.In line with its digital strategy,Aldi Sud has been trialing a click-and-collect service for Swiss customers in collaborat
108、ion with delivery service start-up Annanow.33Retail revenues for Aldi Nord,Aldi Suds sister company,grew by 2.1%in FY2021 to a total of US$28.0 billion.In November 2021,it announced the integration of 500 stores of Frances Leader Price.In 2020,the retailer purchased 554 Leader Price stores out of a
109、total of 640 and two Casino stores from Casino Group for approximately US$870 million.34Target Retail revenueUS discount mass merchandiser Target recorded retail sales of US$104.6 billion in FY2021,growing by 13.2%on top of the 19.8%growth the previous year.The retailer retained its 10th position in
110、 the Top 10,having entered the rankings in FY2020.The Apparel and Accessories segment of Targets sales grew by 21%in FY2021,its only retail segment to grow more quickly this year than in the previous year.Online sales,which increased from 17.9%to 18.9%of total sales,grew by 20.8%in FY2021,following
111、a record increase of 145%in the previous year.Target expanded its existing relationship with Alta,Apple,Disney,Levi Strauss,Starbucks.It added additional store-in-store experiences:notably,Apple expanded its in-store experience from 15 locations in the previous year to 15035.E-commerceAs part of its
112、 Stores-As-Hubs strategy,the retailer expanded its online channel infrastructure by opening an additional three sortation centers in the US,increasing the total number to nine as of July 2022.36 These centers take packed orders from local stores and sort them quickly for local deliveries.During FY20
113、21,over 50%of Targets digital sales were completed by its same-day fulfilment services37(Order Pickup,Drive Up,and delivery via logistics service Shipt).Net Profit MarginTargets FY2021 net profit margin was 6.6%,an increase of 1.9 percentage points compared to the previous year.13Global Powers of Re
114、tailing 2023|Top 10 highlightsTop 10 versus Top 250The Top 250 retailers achieved a total composite retail growth rate of 8.5%in FY2021.In comparison,the Top 10 retailers grew by 8.0%on a composite sales-weighted and currency-adjusted basis,a decline from the 12.4%retail growth by the Top 10 in FY20
115、20.Of the retailers in the Top 10,70%are located in the US,a significantly larger percentage than the 28%of US retailers in the Top 250.Additionally,there was a 2.8 percentage point increase in the percentage of Retail revenue from foreign operations among the Top 10(27.9%):this is similar to the 2.
116、1 percentage point increase across the Top 250 retailers(23.4%).In terms of annual retail revenue growth JD.com was the fastest-growing Top 10 retailer in FY2021,with revenues up by 25.1%.Along with Amazon,the two digital retailers have benefitted from a behavioral shift among consumers toward digit
117、al shopping,during and after the pandemic.The majority of the Top 10 retailers have actively boosted their digital capabilities through either the implementation of in-store technologies to assist shoppers(such as The Home Depots hdPhones)or through enhancing their omnichannel offerings(such as JD.c
118、oms new Shop Now on-demand consumer retail service).The composite net profit margin among the Top 10 grew by 0.2 percentage points from 3.9%in FY2020 to 4.1%in FY2021,but net profit margins among the Top 10 vary widely ranging between-0.5%to 10.9%.Target,Walgreens and Amazon increased their profit m
119、argins by over 1.5 percentage points in FY2021.The Top 250 posted a net profit margin of 4.3%,a 1.0 percentage point increase compared to FY2020.The increase in profitability comes despite the continuing pressure from the pandemic,inflation in the prices of energy and goods,and rising labor costs.Pe
120、rformance of the Top 10 retailers compared to the Top 250 retailers1 0%5%10%15%20%25%30%Retail revenue growthRetail revenue 5 year CAGRNet profit marginReturn on assets%Retail Revenue from foreign operationsTop 250Top 107.9%5.7%8.0%8.5%4.1%4.3%7.5%5.9%27.9%23.4%Source:Deloitte Global.Global Powers o
121、f Retailing 2023.Analysis of financial performance and operations for fiscal years ended between 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.1 Sales-weighted,currency-adjusted composites 14Global Powers of Reta
122、iling 2023|Top 10 highlights15Global Powers of Retailing 2023|Sustainability in retailSustainability in retailThe way forwardMany retailers continue to invest in sustainability initiatives.Deloittes 2023 CxO Sustainability Report indicates that climate change is among the top three issues for consum
123、er-facing companies.There are four areas emerging as key focal points:the importance of the resale market;the need to embed sustainability practices across supply chain operations;the role of technology in sustainability;and the adherence to ESG related regulations and frameworks.65%Using more susta
124、inable materials(e.g.,recycled materials,lower emitting products,less plastic material,circular products)Global=59%50%Developing new climate-friendly products or servicesGlobal=49%62%Increasing the efficiency of energy use(e.g.,energy efficiency in buildings)Global=59%43%Requiring suppliers and busi
125、ness partners to meet specific sustainability criteriaGlobal=44%53%Using energy-efficient or climate-friendly machinery,technologies,and equipment Global=54%38%Updating/relocating facilities to make them more resistant to climate impacts Global=43%50%Developing new climate-friendly products or servi
126、ces Global=49%27%Incorporating climate considerations into lobbying/political donationsGlobal=32%48%Training employees on climate change actions and impactGlobal=50%26%Tying senior leaders compensation to environmental sustainability performance Global=33%Top Actions TakenHarder to Implement,Needle-
127、Moving Actions*CxOs perspective on sustainabilityCompanies in consumer industries continue to see climate change as one of the top issues affecting their organization.In Deloittes 2023 CxO Sustainability Report 54%of the executives surveyed stated that their investment in sustainability had increase
128、d over the past year,and 19%stating that investment had increased before then.There has also been a change in the past year in the top climate issues which executives believe to be impacting companies:49%of respondents this year considered that changing consumption patterns is one of the main issues
129、.In comparison,the main issues in the previous years survey were centered around the impact of industrial processes,regulatory and political uncertainty,and operational impact.Additionally,71%of executives from consumer industries said that they felt strong pressure from their clients and consumers
130、to act on climate change.59%of CxOs in consumer industries believed that their current sustainability efforts were having a positive effect on their brand and reputation,an increase from 50%the previous year.However,the difficulty in measuring environmental impact is a major obstacle to driving sust
131、ainability efforts,indicating a need for tracking tools and processes,which could also benefit long-term sustainability goals.Source:2023 Deloitte CxO Sustainability Report*As defined by Deloittes analysis16Global Powers of Retailing 2023|Sustainability in retailResale in retailThe growing popularit
132、y of the resale market is being driven by consumer preference for sustainable buying options and by high prices for first-hand goods.Consumers,especially those from the millennial and Generation Z age groups,are conscious of what they purchase and appear open to buying used goods which they see as a
133、 more sustainable option compared to buying brand new items1.As consumers become more aware of the negative environmental consequences of fast fashion and other consumer goods,the resale market for product categories such as apparel and furniture continues to grow,fueled by a shift towards eco-consc
134、ious consumerism.The increasing cost of new items is also causing consumers to turn toward purchasing pre-owned goods,which can be obtained at a lower price.Deloitte Globals 2022 Holiday Retail Survey found that 32%of US-based consumers were planning to buy resale items in the holiday season,as a co
135、st-saving measure.Among the categories preferred for purchasing pre-owned goods,clothing topped the list(51%),followed by the toys and hobbies category(40%)2.Several retailers are entering into the pre-owned goods market by introducing marketplaces and buy-back options.Three models are currently use
136、d in the resale market.In the first model,consumers can sell their product back to the retailer they purchased it from to earn store credits.The retailer then sells the refurbished item on their own platform to other customers,giving the retailer more control over its branding and customer experienc
137、e.For example,Nike launched a“Nike Refurbished”program in 2021,through which it resells sneakers returned by customers within 60 days of purchase.The sneakers are inspected and rated as“worn for a day or two”,“gently worn”and“cosmetically flawed”,before being cleaned and resold at a lower price than
138、 the originals3.In the second model,consumers can sell their pre-owned goods to other consumers directly through retailer-facilitated marketplaces,in a peer-to-peer model.Chinese e-commerce company JD.com launched a resale platform called Jing Zhi,where customers can resell their products to other c
139、ustomers or back to JD.coms AiHuiShou second-hand division4.In the third model,consumers can sell their products directly to other consumers through popular reselling marketplaces such as ThredUp and The RealReal,with which the retailers usually have a third-party relationship.For example,luxury bra
140、nds like Gucci and Balenciaga,part of Kering SA,have collaborated with popular third-party resale platform The RealReal to facilitate reselling of their branded goods5,6.The use of these models to facilitate reselling,combined with consumers demand for sustainable purchasing options,is expected to f
141、uel further growth over the coming years in the resale marketplace,across various product categories.It will be important for retailers to optimize logistics,and train their staff to authenticate reselling transactions,while strategizing how to scale their operations sustainably.Future retail models
142、,especially for large companies,will include and combine mainline,outlet and resale selling models.Since consumer expectations are becoming more demanding with regard to sustainability,it is logical that brands should want to control their own resale channels.Sustainable supply chainAccording to 202
143、2 data from the World Business Council for Sustainable Development,the retail supply chain is currently responsible for 25%of greenhouse gas emissions(GHG)globally7.This huge percentage points to the need for retailers to embed sustainable initiatives in their supply chain operations.The traceabilit
144、y of food products and reduction of food waste from the value chain are other major concerns for consumers as they interact with retailers.Tesco recently launched“Tesco Exchange”,a surplus marketplace,to help its suppliers cut down on food waste in the supply chain.Through this surplus marketplace,T
145、escos suppliers can sell or donate excess food products and stock to other suppliers that can make better use of it,rather than letting it go to waste8.Retailers like Walmart and popular programs such as Imperfect Foods are also selling“imperfect”grocery items that would otherwise not pass cosmetic
146、quality checks.This eliminates wastage of quality food products from the supply chain.Growth in e-commerce operations has led to an increasing demand for robust logistics services and requirements for more fulfilment centers.This has paved the way to embedding sustainability across various parts of
147、the retailers supply chain.Dark stores,which are brick and mortar stores converted into fulfilment centers,provide the retailer with an additional logistic operation center without the need to invest as much in capital,and also reduces the need for carbon intensive construction projects to build new
148、 fulfilment infrastructure.Greenhouse gas emissions(GHG)are divided into three categories Scope 1,2 and 3 emissions.In the retail sector,Scope 1 emissions are emissions resulting directly from a retailers operations,such as emissions from its own logistics fleet or from machinery owned and operated
149、by the retailer.To bring down Scope 1 emissions,retailers like Walmart are switching to electric vehicles across their fleet and integrating alternative sources such as Compressed Natural Gas and Hydrogen into their over-the-road trucks and yard trucks to bring down emissions from their owned fleet9
150、.Scope 2 emissions occur as a result of indirect operations such as electricity usage and heating requirements.Sourcing electricity from renewable sources such as solar,wind and biogas can help reduce Scope 2 emissions.Retailers like Aldi and Sephora are already embracing renewable energy sources by
151、 purchasing solar and wind-generated electricity for their stores10.Global Powers of Retailing 2023|Sustainability in retailScope 3 emissions arise from operations across the value chain,which are not directly under the control of the retailer.Emissions from purchase and use of the retailers product
152、s by consumers,from manufacturing private label products,and from third-party logistics operations fall within this category.Scope 3 emissions form a large proportion of total GHG emissions for retailers and are also the most difficult to reduce.In 2020,among conventional retailers,Scope 3 emissions
153、 were 28.3 times higher than Scope 1 and Scope 2 emissions combined,according to CDP(formerly the Carbon Disclosure Project)data11.Several retailers have set up strict emissions guidelines for their network of suppliers and logistics associates,to bring down their Scope 3 emissions.Initiatives for t
154、he reduction of packaging waste through the circular economy and recycling initiatives are also being implemented to bring down Scope 3 emissions.Spar Group Limited,a South Africa-based holding company,has launched several initiatives to reduce packaging waste across its products.It uses 100%recycle
155、d packaging for its products and encourages consumers to recycle their packaging to help ensure that packaging waste is minimal and remains within a circular loop12.1718Global Powers of Retailing 2023|Sustainability in retailSetting science-based targets and monitoring progress through dashboarding
156、and independent reviews,and by using frameworks such as CDP,could help retailers accelerate their progress towards sustainability.Achieving sustainability across a retailers supply chain operations also comes with the added benefits of improved efficiencies and cost savings.Role of technologyIn Delo
157、ittes 2023 CxO Sustainability Report,referred to previously,53%of consumer industry CxOs stated that their company had already used energy-efficient or climate-friendly machinery,technologies,and equipment as a part of its sustainability efforts.Usage of technology tools such as blockchain and artif
158、icial intelligence can assist retailers sustainability initiatives.Blockchain technology can increase the level of traceability and transparency across retailers supply chain operations.It can be used to track products and components as they progress through the value chain,from sourcing to producti
159、on,and purchase to disposal,thereby helping to enable closed-loop supply chain strategies.Artificial intelligence(AI)has various applications in sustainability initiatives,such as designing products for a circular economy,improving traceability of products,and making forecasting functions more relia
160、ble to help reduce wastage from excess inventory.AI can be used to cut out waste from the design stage of a product life cycle and is estimated to have the potential to unlock value of US$90 billion per year in the consumer electronics category,and US$127 billion in the food category13.AI can also b
161、e used to make forecasting more reliable and to reduce overstocking,thus helping reduce waste from a retailers operations.Supermarket company Albertsons has selected Afresh Technologies AI platform to optimize its fresh food forecasting and monitor inventory,reducing food wastage across its stores14
162、.Regulations and frameworks With increasing scrutiny of sustainability reporting which is being undertaken by retailers,adherence to frameworks and regulations,and accurate reporting are becoming more critical by the day.Deloittes 2023 CxO Sustainability Report found that 69%of consumer industry CxO
163、s identified changing regulatory environment as an issue that influenced their organizations actions on sustainability over the past year.Some of the widely-used global reporting standards for retailers include:TCFD:The Task Force on Climate-Related Financial Disclosures(TCFD)sets out financial disc
164、losure guidelines for climate-related topics.The TCFD reporting standards are divided into four themes:governance,strategy,risk management,and metrics and targets15.The TCFD reporting standard is widely used by retailers globally.The UK government has further adopted TCFD reporting and made it manda
165、tory for publicly listed companies in the UK16.CSRD:The Corporate Sustainability Reporting Directive(CSRD)was adopted by the European Union(EU)in 2022.It requires around 50,000 EU-based large,medium,and small-scale companies to report sustainability and human capital-related metrics.The CSRD require
166、ments replace the existing Non-Financial Reporting Directive(NFRD)and introduce more robust reporting requirements for a companys impact on the environment,human rights,and social standards.The directive is also applicable to non-EU companies which have a turnover of more than US$160 million in the
167、EU17.TNFD:The Taskforce on Nature-Related Financial Disclosures(TNFD)has released frameworks to help companies track nature-related risks and act to achieve nature-positive outcomes.Its latest framework includes guidelines on disclosures,the LEAP approach to assess nature-related risks and opportuni
168、ties,and guidance on science-based targets for nature18.CDP:The CDP,formerly the Carbon Disclosure Project,is one of the most relevant reporting standards for retailers,centered around tracking and reporting the impact of operations on the environment.The CDP has three primary areas of focus:climate
169、,water,and forests.Companies disclose their environmental impact metrics by answering climate-related questionnaires19.SASB:The Sustainability Accounting Standards Board(SASB)outlines industry-and sector-specific standards for sustainability reporting.Examples of its sector-specific metrics include
170、energy management in retail distribution for multiline and specialty retailers;and employee recruitment,inclusion,and performance metrics for e-commerce operations20.19Global Powers of Retailing 2023|Sustainability in retail20Burberrys sustainability approach,Burberry Beyond,includes focusing on res
171、ponsible craftsmanship,planet,people,and the community.“Its a broad-reaching and ambitious approach,”says Caroline.“It becomes tangible and manageable through the initiatives weve set up to achieve these goals.”The projects around sustainability are embedded in the different parts of the business.“T
172、his encourages collaboration across Burberrys business areas and is key to our success.The projects are immensely interconnected.Our collaborative approach,working in multi-functional team across the business,ensures we dont tackle one issue while harming our goals in another area.”Heritage trench c
173、oats built to lastOne of Burberrys focus areas is to ensure sustainable sourcing of their raw materials.The brands heritage trench coats are made in the UK at a carbon-neutral,internal manufacturing site,with certified cotton,which can be traced all the way through the supply chain.The trench coat i
174、s built to last,and Burberry offers services which extend the trench coats life even further.“A repair and refresh service can give this wonderful product a second life.We are working the exact opposite of fast fashion,”says Caroline.Traceability is a key issue in the fashion industryBy FY 2025/26,B
175、urberry aims for 100%of its key raw materials to be traceable.“Traceability will give us absolute visibility from the field to the wardrobe.That means understanding the supply chain,understanding risk and sourcing in the various regions.We have a roadmap to support that,with key milestones.This help
176、s us deliver and report on our targets,both environmentally and socially,and,above all,it is what consumers want.On a recent visit to one of our stores,it was great to hear from staff members that customers increasingly ask where the products come from and how the materials are sourced.We love that!
177、”Collaborating across the industry“We are very lucky to have leadership who has been right at the forefront of our sustainability developments and we work with other c-suite executives on these standards,keeping us one step ahead of the game.”Burberry is a proud member of the Fashion Pact,a global c
178、oalition of 80 companies in the fashion and textile industry,representing 200 fashion brands and covering one-third of the fashion industry.The Fashion Pact is committed to global goals such as stopping global warming,restoring biodiversity and protecting the oceans.“We are all tackling the same cha
179、llenges.The Fashion Pact helps us to collaborate on finding solutions for these challenges.One of the things being investigated for example,is an alternative for the polybag,widely used in the fashion industry.Work has also been done on a collective power purchase agreement and there are workstreams
180、 around unlocking low-impact materials.By working together,we can help to move the industry forward,while also supporting our own goals.”Multiple initiatives serving to achieve ambitious goalsCaroline had a hard time choosing which other initiatives to mention,as there were so many noteworthy ones.T
181、heres the sustainable manufacturing team working with Burberrys vendor base to reduce chemical and water impacts.“I think Burberrys multi-faceted approach to sustainabilityCross-departmental collaboration key to successCaroline LaurieVice President Corporate ResponsibilityRetail executive interviewG
182、lobal Powers of Retailing 2023|Sustainability in retail“On the climate change front,I feel ambition is no longer enough.It now has to be about operational delivery.”we are one of few luxury businesses to have a dedicated team of experts supporting vendors in environmental water assessments&chemical
183、management right throughout the supply chain.Water is sometimes considered somewhat a poor relation when compared to carbon and climate change.But with water being so vital,we are dedicating plenty of resources to this.”She also mentioned the Sustainability Bond,which funds some initiatives across m
184、aterials and sustainable packaging,for example,and their sustainable finance function that takes care of non-financial reporting requirements including TCFD.Theres a project in which Burberry works with partners on the PUR Project(now known as PUR)to support Australian wool farmers in implementing s
185、ustainable farming practices.When outside of work,Caroline does not stop thinking about sustainability.“When Im not busy taking my teenagers to their numerous sports activities,I like to think about the bigger challenges while I am out walking or running.I live near the beach,so I have the perfect l
186、ocation to do that.”Global Powers of Retailing 2023|Sustainability in retail2122Ahold Delhaize recognizes its role both in helping customers to make healthy and more sustainable choices,and leading the transition to a healthy and sustainable food system,which is reflected in their commitment to beco
187、ming a net-zero company.Ahold Delhaize calls its approach to sustainability Grounded in Goodness.We asked Daniella Vega,Global Senior Vice President Health&Sustainability,to tell us about their plans for achieving Scope 3 emission reduction targets across their business.Scope 1 greenhouse gas emissi
188、ons result directly from a companys own operations,such as emissions from its own machinery,and Scope 2 emissions result indirectly from its operations,such as usage of electricity and heating.Companies can reduce these emissions by switching to electric vehicles,for example,or by sourcing electrici
189、ty from renewable sources.Scope 3 emissions arise from operations across the value chain,such as emissions by third-party logistics partners or suppliers,and these are the most difficult to reduce as they are not directly under a companys control.The report section“Sustainability in Retail”contains
190、more details on scope 1,2,and 3 emissions.“Our Scope 3 target is to achieve net zero by 2050,with a 37%reduction achieved by 2030,”says Daniella.“We shortlisted the levers that we would need to pull to support reaching this decarbonization target.We chose to focus on supporting the supply chain to d
191、ecarbonize,on livestock and regenerative agriculture,and on providing a sustainable diverse assortment through,for example,the shift to more plant-based proteins.”But,with 19 large food retailer brands across the US and Europe,there is no one-size-fits-all solution across all Ahold Delhaize operatio
192、ns.The trajectory and ambitions for decarbonization are set at group level,but the various programs are shaped from the bottom up,making use of the power of the local brands.Local programs reinforce global goals“We have programs in place in most of our retail brands that reinforce our decarbonizatio
193、n efforts throughout the supply chain.Albert Heijns Better For program,for example,aims to offer,among other things,a more sustainable assortment.And as part of Albert Heijns mission,the brand aims to have 60%of its protein sales made up of plant-based proteins by 2030.The brand already has a large
194、plant-based assortment which continues to expand.Albert Heijn is also increasingly encouraging customers to make vegetarian choices,”says Daniella.More than 1,100 farmers and growers are part of the Better For program,which consists of transparent,long-term agreements on climate,carbon reduction,sus
195、tainability,animal welfare,and fair earnings.“Our marketing efforts help bring the customer along on the journey.Another example of reducing the carbon footprint is by sequestering carbon in the soil.Albert Heijn partners with 450 dairy farmers who have stopped plowing grasslands and started sowing
196、herbs in the fields,which results in the soil retaining up to twice as much carbon.Furthermore,Delhaize in Belgium has built its loyalty program around health,by always providing a 10%discount on fresh products with Nutriscore A&B.The more healthy foods you buy,the more of a discount you get.With ov
197、er 2.5 million subscribers,weve seen people structurally buying more fresh food since we started this program.Ahold Delhaizes journey toward net zeroUncovering new levels of collaboration to achieve Scope 3 emission targetsDaniella VegaGlobal Senior Vice President Health&SustainabilityRetail executi
198、ve interviewGlobal Powers of Retailing 2023|Sustainability in retail“Healthy people and a healthy planet are connected.Our programs look for the interconnections and co-benefits between the two.”In the US,Ahold Delhaizes Giant Food is working with the Rodale Institute,an organization dedicated to bu
199、ilding a regenerative organic agriculture movement through research,farmer training and education.Together,they are investigating the possibilities for regenerative agricultural practices in Giant Foods supply chain and are working in partnership to bring these practices to their supply base through
200、,for example,farmer support programs.Connections are key to decarbonization across the value“Our ambitious decarbonization targets require a new approach.Working on our Scope 1 and 2 emission reduction becomes business as usual.But working on Scope 3 requires a real mindset shift.It means unravellin
201、g the way we work with our supply chains and building a new way of working,with sourcing and merchants for example,but also with our internal finance department.Listening to all our stakeholders and,above all,our customers.Daniella has been active in the field of sustainability for over 20 years.“Bu
202、t this current time of uncertainty,on many fronts,makes us think about health and sustainability in new ways.I believe that constraints lead to innovation.We need to connect health to the notion of value for our customers.These are the kinds of co-benefits we are looking for.”“In such uncertain time
203、s,looking after your own health is paramount.I encourage my team to focus on their own health and wellbeing as well as that of our business and our wider communities.For me,health is linked to nature,and I prioritize trying to be in nature every day.I love to take long walks and to swim.Global Power
204、s of Retailing 2023|Sustainability in retail23“It takes partnership and a growth mindset”24The Global Powers of Retailing 2023 edition shows that,as many retailers continue to invest in sustainability initiatives,some themes require more attention and investment from retailers.One of these is the re
205、sale market.We spoke with Maureen Erickson about lululemons efforts in this regard.Lululemons Like New recommerce program is a logical follow-on from its goal to minimize environmental harm and restore a healthy planet.Lululemon has always built its products to last and the program now allows gently
206、 used products to be returned and resold.Key ingredients in building the program were the quality of lululemons products,its engaged community,and the ability to forge strong partnerships.So what does their Like New recommerce program entail?“We were already a top brand on most third-party used clot
207、hing platforms,”explains Maureen Erickson,SVP Global Guest Innovation at lululemon.“Our Like New program allows guests to extend the life of our products by buying lululemon Like New or trading in lululemon gear when they are done with it.We knew there was already a massive market for previously wor
208、n lululemon products and buying second-hand is commonplace.Now,new and existing guests can come directly to us for these gently-used products and let us handle the logistics,while extending the life of the products they love.Like New has enabled us to reach a younger audience,as our premium product
209、is offered at a more affordable price point.”Connections are key when it comes to creating sustainability impact“Were very proud of the journey were on together with our guests,as we call our customers at lululemon,”continued Maureen.“Our community is clearly already environmentally-minded and activ
210、e in sustainable shopping solutions,and we have been excited to see how engaged our guests are to participate in our Like New program both on the trade in and resale.”And that is the primary goal for lululemon answering the urgent call for a more sustainable industry.Lululemon reinvests 100 percent
211、of the resale profits(or 2 percent revenue,whichever is higher)from Like New into additional lululemon sustainability initiatives.The new platform has become a self-funding mechanism that allows them to put their Impact Agenda into action.“We have a goal to create end-of-use solutions for all of our
212、 products by 2030,so recommerce is a global priority for us.But we realize that we cannot change the industry alone,and that when it comes to sustainability,collaboration is key.We hope our peers will join us in finding circular solutions that further reduce retails environmental impact.”From idea t
213、o implementationLaunching this program touched all parts of the lululemon organization,and shows the power of believing in whats possible when it comes to impact.Maureen adds:“Lululemon Like New is an example of our environmental commitments in action,so it was easy to get leadership alignment and p
214、assion across the organization from the beginning.We established an all-star team who took this from an idea to a thriving program our guests love and engage in.”Lululemons Like New ProgramHow a focus on sustainability goes hand in hand with meeting consumer wishesMaureen Erickson Senior Vice Presid
215、ent Guest InnovationRetail executive interviewGlobal Powers of Retailing 2023|Sustainability in retail“The primary goal is the urgent call for a more sustainable industry,and were proud of the journey were on.”The Like New pilot program launched in 2021 in California and Texas.This gave the team tim
216、e to test and learn to refine the model before scaling it to all US guests in April 2022.Lululemon forged a successful partnership with a backend logistics partner and were able to use their expertise in back-of-house logistics and their knowledge of the circularity industry at large.This allowed us
217、 to focus on what we do best offering a premium guest experience our community knows us for.“But above all,launching Like New showcased what lululemon is about.Innovating to see possibilities,creating impact,providing guests with quality products,and empowering our leaders.”Global Powers of Retailin
218、g 2023|Sustainability in retail2526For Javier Losada,sustainability is not something that is only a priority for the head office or the companys sustainability department.“All 165,000 members of staff need to be on board to make it happen,and it is something that happens every day,not just a one-off
219、 project”,Javier said when we asked him about the Inditex approach.Of course there are some massive initiatives related to meeting our environmental targets,where corporate is in the lead,but we also have wonderful initiatives in the field of sustainability that are led from the bottom up.I am very
220、proud of how weve managed to completely embed this all throughout our organization.Putting everyone in charge of changeIn fact,Javier mentions employees as one of the strongest engines in Inditex,pushing them ahead on their sustainability journey.“Our employees have the connection to our products an
221、d customers every day,and they are delighted we are taking so many steps forward.”With this in mind,and with the strong belief Inditex has that change can be initiated at every level of its organization,it started a Changemakers program,which empowers employees to find ways to improve operations.The
222、 program identified the professionals who are most passionately committed to sustainability at stores worldwide.“They are our Changemakers and that community is tasked with making sure sustainability reaches all our store teams.Our Changemakers are provided with constant training and they work on fe
223、edback,ideas and concerns from our teams and customers.That project is already running across 53 markets and extending to all Inditex stores in the world.”Employees were also the first customers for the Zara pre-owned program.The pre-owned program,Inditexs new approach to circularity,helps to extend
224、 the life of garments through repair,donation,or recycling.Employees have been joining in but customers are now also loving this opportunity to help transform the life of their clothes.Targets for sustainable sourcing of fibres and reducing plastic use,and ultimately becoming net zeroThe overall amb
225、ition targets are set high at Inditex.“There are targets for the sustainable sourcing of cotton and cellulose fibres by 2023.Were committed to gathering 100%of our polyester and our linen from preferred sources as well,by 2025.At the same time,we are reaching very important milestones regarding the
226、use of renewable energy in our operations and the elimination of single-use plastics.”“Such huge changes ask a lot from us.It takes dedication,innovation and it forces us to challenge the way weve always done things.And thats why we need everyone on board,from employees to competitors,to governments
227、,NGOs and other stakeholders.If we are all transparent about our efforts,and collaborate,we will get much further.We have set ambitious goals and are getting ready to deliver on them.The Sustainability Innovation Hub“The best example of our commitment to innovation,research,investment and collaborat
228、ion is the Inditex Sustainability Innovation Hub,our vehicle for searching tirelessly for better materials,approaches and processes,alongside start-ups,scientific institutions and third-party organisations.We are pioneering new types of recycled fibre,like Infinna,to help scale solutions.We are also
229、 investing in start-ups such as CIRC,whose disruptive technology will make it possible to recycle clothing made from polyester and cotton blends on an industrial scale,addressing one of the biggest challenges the industry is facing.”Another initiative developed by the Sustainability Innovation Hub i
230、s The Laundry by Zara Home,a program in which Inditex partnered with BASF to develop the first detergent designed to reduce microfiber release from textiles during washing.The new detergent is available at the brands stores and online,and it reduces microfiber shedding from textiles by up to 80%.Ind
231、itex embeds sustainability at all levels of its organizationFrom the head office,to the shop floor,everyone is joining inJavier Losada Chief Sustainability Officer at InditexRetail executive interviewGlobal Powers of Retailing 2023|Sustainability in retailIt also enables washing at a lower temperatu
232、re,saves energy and therefore reduces greenhouse gas emissions.“The developed solution can also be adjusted to enable the use of this technology by other detergent manufacturers,because we hope everyone will use it.So,although some of our initiatives may seem small,the sheer size of our operations a
233、nd our willingness to share with the rest of the industry,means they can have a huge impact.”All about our futureJavier ended by talking about the importance of getting this right.“The textile industry will be completely different in ten years,but it will be for the better.Its a challenging process
234、to get there but as one of the leading companies in the industry,we have the responsibility and a commitment to play a big role in the transformation for future generations.”“Personally,the future generation is also where I find my balance.I have amazing conversations with my kids about sustainabili
235、ty,for example.Their generation is already so aware and interested in this topic.And in the end,those future generations are what it is all about.”Global Powers of Retailing 2023|Sustainability in retail27“We are reaching very important milestones regarding the use of renewable energy in our operati
236、ons and the elimination of single-use plastics.At the same time,There are targets for the sustainable sourcing of cotton and cellulose fibres by 2023.Retailers sustainability initiativesCase studiesGlobal Powers of Retailing 2023|Sustainability in retailColruyt GroupBelgian retailer Colruyt Group re
237、cently introduced a sustainability loyalty program which rewards loyal customers with sustainability-related credits.Customers can accumulate loyalty points on its Xtra app by purchasing food and other products from the companys Eco-score A and B categories.The points can be redeemed towards several
238、 environment-related initiatives such as planting a tree or taking sustainability workshops at the Colruyt Group Academy.The initiative has been launched to encourage consumers to make more conscious and sustainable choices when shopping for products23.AmazonAmazon recently launched the“Grade and Re
239、sell”program in the UK,which enables third-party sellers to resell products that have been returned to them.Amazon rates these products by their quality as“Like New,”“Very Good,”“Good,”or“Acceptable”,and the reseller can choose the pricing of the product according to its quality rating.The products
240、are then sold on Amazon to customers who are open to purchasing used goods.Another new program allows sellers to sell extra inventory to other wholesalers through Amazon.Both these programs are expected to be rolled out soon to the US and several European countries and are expected to reduce waste g
241、enerated by discarding used and returned products,and through overstocking24.2829Global Powers of Retailing 2023|Sustainability in retail30Global Powers of Retailing 2023|Future of the StoreEmerging technology and reinventing the human experienceAs the post-pandemic world emerges,the integration of
242、technology in the retail industry has become increasingly important in attracting customers back to physical stores and creating immersive shopping experiences.The use of advanced technologies such as virtual and augmented reality,artificial intelligence,and data analytics helps enable retailers to
243、personalize recommendations,streamline checkout processes,and engage customers in unique ways.In this new era of retail,the innovative application of technology will be crucial in fostering customer loyalty and driving business success.Additionally,retailers are seeking to enhance the shopping exper
244、ience by offering a range of human-centered services beyond product sales,such as concierge assistance,on-site repairs,valet parking,and personal styling.These added touches of convenience and personalization can differentiate physical stores from online retailers,who may not be able to offer such s
245、ervices.Future of the StoreSeven&iIn March 2022,Japanese convenience store chain 7-Eleven conducted a trial of a new self-checkout system using holographic registers in selected outlets in Tokyo.The system,known as Digi POS,featured non-contact holographic display technology for point-of-sale cash r
246、egisters.It was developed in a joint venture between Toshiba Tec,7-Eleven and others.Customers using the system were able to scan their products and proceed to payment.Additionally,the registers also offered a selection of Seven Cafe beverages for customers to choose from.The trial provided valuable
247、 insights into the feasibility and effectiveness of this innovative technology in the retail industry1.Ulta BeautyUlta Beauty has integrated artificial intelligence(AI)and augmented reality(AR)into its business operations in order to improve customer experiences and adapt to changing market conditio
248、ns.In 2018,the company acquired start-ups QM Scientific and GlamST,to develop an AI-powered recommendation engine and AR technology respectively.These acquisitions have helped enable Ulta Beauty to offer a virtual try-on experience called GLAMLab in its app.This uses AR and AI technology to allow cu
249、stomers to try on products.The company is also using AI to analyze consumer data and optimize inventory management.The companys Chief Digital Officer commented that the combination of AR and AI is having a positive impact on the business2.31Global Powers of Retailing 2023|Future of the StoreNikeReta
250、ilers are using technology to create immersive in-store experiences as a way to attract and retain customers in a competitive market.In January 2022,Nike announced a collaboration with 8th Wall and BDRG Studios to bring augmented reality(AR)technology to its in-store retail experience in selected lo
251、cations in the US.The collaboration,called the PLAY NEW initiative,invited customers to scan QR codes located throughout the store to unlock and play five web-based AR sports games.Additionally,Nike announced a collaboration with online gaming brand Roblox to bring an AR experience,called Nikeland,t
252、o its New York City Fifth Avenue store3.AlibabaAlibaba Group has implemented technology to enhance the shopping experience for its customers in its stores,with a focus on the integration of online,offline,logistics and data.One example of this is Hema,a high-tech supermarket chain that is part of Al
253、ibabas New Retail strategy.Hema stores are designed around customers smartphones,which can be used for everything from placing items in a digital shopping cart and receiving product information,to paying for goods.Customers can also enjoy personalized shopping recommendations using AI.Products have
254、digital price tags that can be updated in real time4.32As a part of the Future of the store section of this Global Powers of Retailing report,we spoke with Donald McDonald,Managing Director of Brown Thomas in Ireland,about Brown Thomas new Dundrum store.Unprecedented technological possibilities,and
255、increased online shopping due to COVID,have steered many retailers in the direction of a fully digital offering.But Brown Thomas has embraced the physical store,and combined it with the innovative services offered by technology.In an age of cashless stores and increasing digital purchases,Brown Thom
256、as opened a new physical store focused on reinventing the shopping experience.The new Dundrum store opened in 2022 and offers luxury brands,beauty makeovers,masterclasses,vitamin injections,fashion shows,repairs and dry cleaning,and the type of concierge services typically reserved for 5-star hotels
257、.Digital supports the in-store experience“We are certainly not shying away from the digital opportunities on offer,”said Donald when asked about the relationship between online and offline.“In fact we embrace the digital solutions on offer,and we use them to enhance our physical customer experience.
258、Above all,we are customer centric,not system centric.”Donald sees customers are becoming increasingly cross-channel oriented.“Customers who visit us in store as well as online spend on average three times as much as our single-channel customers.So,in fact,weve seen the best of both worlds,the in-sto
259、re world and the online world.”Innovation and collaboration key in unique store conceptBrown Thomas was one of the first stores to set up an innovation department,and many of its new services have come out of that department.Donald shares how its a collaboration across the whole business and with th
260、eir suppliers and brands.And with their customers first and foremost.“We examined the pain points for our customers and looked at solving things that might be inhibiting their experience.Its then up to our buying directors,to really deliver the customer experience.They work closely with the retail o
261、perations team,the store design people,and our marketing team.Externally,our buying teams work with the luxury brands we offer,to ensure that,together,we grow both our brands in the store.Where shoppers used to mainly look at price,they are now visiting us for an experience.”The new store has also g
262、iven employees new areas to work in,like the concierge services mentioned before.Just like the innovation team,the retail team is really pushing boundaries.“Im very proud of how we are all working together,especially in these challenging times.”Brown Thomas new Dundrum storeA human-centered luxury e
263、xperienceDonald McDonaldManaging Director“Customers love their personal experience at our experiential store and weve ensured that our digital channels support this in-store experience,rather than drive customers online.”“Experience is the most important part of retail.”Retail executive interviewGlo
264、bal Powers of Retailing 2023|Future of the StoreThe value of consistencyRetail is detail is often heard in the retail domain.“Thats a classic,”agrees Donald.“And our focus on details is what lets us deliver on the customer experience.Often,people wont remember the exact product they bought,but theyl
265、l remember the experience they had shopping in our store.We look at every detail.From the level of the music,the cleanliness of the store,the visibility through the store,the temperature.Were even working to see how we can incorporate a scent into our stores.In that respect,I believe that of all the
266、 components that go into making the Brown Thomas experience,consistency is very important in delivering on our promise.Consistently delivering an elevated experience for our customers.There are many stores that offer a product,but we offer a significant,unique,consistent elevated experience.”A retai
267、l life,with a little bit of sportsDoes the hectic world of retail leave any time for unwinding?“Well,my wife also works in retail so we enjoy talking about that even when we are not working.And I love watching all sorts of sports and I play a bit of golf.With a 70-hour working week,I dont have much
268、room for anything else.But I love what I do and dont really need to get away and unwind like some people do.”“Luxury brands are keen to have their brand experience come to life in our store.”Global Powers of Retailing 2023|Future of the Store3334After launching an alcohol delivery start-up,partnerin
269、g with a huge retail store in order to scale up,and consequently pivoting the business from the alcohol to the groceries category when the COVID-19 pandemic hit,Vincent Viviers ideas about the future of retail have a solid grounding in experience.A personal journeyIn 2016,Vincent co-founded Bottles
270、App,South Africas first alcohol delivery app,shaking up a legacy industry where technology was virtually absent.Bottles went on to partner with Pick n Pay Liquor to scale their beverage delivery business and became the leading on-demand alcohol delivery service in the country.“Then,when the pandemic
271、 hit,we faced a lockdown and a government ban on the sale of alcohol for a period.We worked flat-out to pivot our business from alcohol to an on-demand grocery delivery app.We managed to do this in just 4 days,and business has boomed ever since,culminating in Bottles being acquired by Pick n Pay in
272、2020,where my team now leads Pick n Pays omnichannel division.that made a difference for so many people“Im so proud that we could help people in a difficult time and create jobs when many people were out of work because of the pandemic.The team really came together to get this done for customers.”Om
273、nichannel and digital transformation are now an integral pillar in Pick n Pays strategy,and Vincent and his team are in the relentless pursuit of continuing to create great omnichannel experiences for customers.“Grocery retail was one of the last categories to embrace digital technology.But the pand
274、emic fast-tracked e-commerce,especially in retail,and we have not seen it slow down now things are returning to normal.Customer adoption of online shopping,on-demand services and delivery options has remained.In fact,it keeps growing.”The ingredients for successBut it is not all easy.Vincent also ta
275、lked about the challenges he faces in growing Pick n Pays omnichannel presence.“Transformation of a large,existing business is not for the faint-hearted.It requires a team that embraces new technology and looks for collaboration.It is a constant balance between maintaining current business,while at
276、the same time building a new,strong,innovation and product-led team.It takes solid tech and data science resources,so attracting talent in that field is important,but not easy in the current competitive market.And its critical to avoid silos,both in the customer ecosystem of platforms and in the bac
277、k-end infrastructure.”Omnichannel is the future“Ultimately its about being there where your customers are,”said Vincent.Pick n Pays collaboration with a South African food and take away delivery company,is a great example of that.The partners delivery network and Pick n Pays e-commerce capabilities
278、joined forces in 2022 and their strong growth proves the importance of strategic collaborations and thinking outside of the box.“Whether customers are looking to have groceries delivered or choose to have a take away meal come to the door,we are there!”but brick and mortar stores are here to stayAnd
279、 although it may not seem logical to talk about the importance of brick and mortar stores when talking to someone with omnichannel in his job title,Vincent underlines how important brick and mortar stores will continue to be,especially in the grocery space.“Everybody needs groceries.And,of course,li
280、ke any business,brick and mortar stores will adapt going forward,but they will always remain important,and are actually a cornerstone of our e-commerce and delivery success.Customers will continue to go to stores for their standard shopping but stores will also Omnichannel approach is the way ahead
281、for grocery retailHow Pick n Pay ensures it is there where its customers areVincent ViviersOmnichannel Executive Pick n PayRetail executive interviewGlobal Powers of Retailing 2023|Future of the Store“Ultimately its about being there where your customers are!”become more experiential.They will incre
282、asingly be a place where customers can see and experience products.The store can then also function as a fulfilment center,delivering the products to peoples homes.Customers want to be able to actually see a new fridge,for example,before choosing which one they want,but the real added value is if th
283、ey can then have the store deliver that fridge to their home at a later moment.The brick and mortar stores are also great for collecting data on purchasing behavior and stock availability.”Keeping a positive mindsetIn the days when his business was still a start-up,Vincent found it difficult to swit
284、ch off.Now the business is more established,he is very mindful of being present in the moment,both at work and when spending time with family.“Being 100%present in all I do takes effective time management and ensuring I stay healthy.I start my day with a walk,a game of tennis or a hike,which sets me
285、 up for success for the rest of the day.I need that positive mindset for myself and for my team.”“Brick and mortar stores will adapt going forward,but they will always remain important,and are actually a cornerstone of our e-commerce and delivery success.”Global Powers of Retailing 2023|Future of th
286、e Store3536Global Powers of Retailing Top 250Global Powers of Retailing 2023|Top 250The Global Powers of Retailing Top 250 companies achieved very strong year-on-year growth of 8.5%in retail revenue,on a sales-weighted,currency-adjusted composite basis.This is building on top of the 5.2%year-on-year
287、 retail revenue growth recorded in FY2020.Whilst still posing significant challenges,the retail environment became more hospitable in FY2021 compared to the previous year thanks to the partial relaxation of pandemic restrictions and consumers returning to prepandemic shopping habits.Pent-up consumer
288、 demand for apparel and accessories led to the 31.3%annual sales growth in the segment,compared to a 14%fall in the previous year.Luxury goods retailers achieved standout performance thanks to the reopening of brick-and-mortar stores and the re-emergence of social events and occasions,which lend the
289、mselves to purchases of high-end apparel.The department store format benefitted in particular,with 25.7%revenue growth,after a difficult FY2020 plagued by store closures and apprehensive consumers.E-commerce retailers and retailers with developed digital channels posted strong revenue growth during
290、FY2021,on top of the record-breaking returns in the previous year.The composite net profit margin for the Top 250 retailers was 4.3%on a sales-weighted,currency-adjusted composite basis,one percentage point higher than the previous year.This increase in profitability was attributable largely to a co
291、mposite net profit margin of 9.8%in the apparel and accessories sector and to increased profitability of hardline and leisure goods and diversified retailers.In total,81.6%(204)of the Top 250 achieved positive retail revenue growth,and 35.2%(88)of them recorded double-digit growth.Among the retailer
292、s that reported their net profit,88.9%(169)were profitable,up from 82.7%in FY2020.The share of Top 250 aggregate retail revenue from foreign operations increased from 21.3%to 23.4%,and the average number of countries in which companies have retail operations increased from 10.8 in FY2020 to 11.4 in
293、FY2021.5-year growth and profitability of Top 250 retailers in Global Powers of Retailing reports Note:GPR 2014=FY2012,GPR 2015=FY2013,GPR 2016=FY2014,GPR 2017=FY2015,GPR 2018=FY2016,GPR 2019=FY2017,GPR 2020=FY2018,GPR 2021=FY2019,GPR 2022=FY2020,GPR 2023=FY2021Source:Deloitte Global.Global Powers o
294、f Retailing 2023.Analysis of financial performance and operations for fiscal years ended between 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021Retail re
295、venue growthNet profit margin4.9%4.1%4.3%5.2%4.1%5.7%4.1%4.4%5.2%8.5%3.1%3.4%2.8%3.0%3.2%2.3%3.0%3.1%3.3%4.3%2%4%6%8%10%Global Powers of Retailing 2023|Top 250Top 250 companies by size(retail revenue US$B),FY202137Source:Deloitte Global.Global Powers of Retailing 2023.Analysis of financial performan
296、ce and operations for fiscal years ended between 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.%of companies%of retail revenueUS$50BUS$10-50BUS$5-10B=US$5B02550751008.8%49.7%34.4%14.7%1.2%38.0%47.6%5.6%38Global P
297、owers of Retailing 2023|Top 250FY2021 retail revenue rankChange in rank from FY20201Name of companyLocation/Geography of originFY2021 retail revenue(US$M)FY2021 parent company/group revenue2(US$M)Dominant operational format#countries/geographies of operationFY2016-2021 retail revenue CAGR3FY2020-202
298、1 retail revenue growthFY2021 Net profit margin41 0Walmart IncUnited States 572,754 572,754 Hypermarket/supercenter 24 3.3%2.4%2.4%2 0A,Inc.United States 239,150 469,822 Non-store 21 20.4%12.0%7.1%3 0Costco Wholesale CorporationUnited States 195,929 195,929 Cash&carry/warehouse club 12 10.5%17.5%2.6
299、%4 0Schwarz GroupGermany 153,754 156,209 Discount store 33 7.8%5.5%n/a5 0The Home Depot,Inc.United States 151,157 151,157 Home improvement 3 9.8%14.4%10.9%6 0The Kroger Co.United States 136,971 137,888 Supermarket 1 3.5%4.1%1.2%7 2JD.com,IncChina 126,387 147,450 5Non-store 1 28.0%25.1%-0.5%8 -1Walgr
300、eens Boots Alliance,Inc.United States 122,045 132,509 Drug store/pharmacy 6 4.7%3.7%1.9%9 -1Aldi Einkauf GmbH&Co.oHG and Aldi International Services GmbH&Co.oHGGermany 120,947 e 120,947 eDiscount store 19 4.8%-0.4%n/a10 0Target CorporationUnited States 104,611 106,005 Discount department store 1 8.5
301、%13.2%6.6%11 0CVS Health CorporationUnited States 100,105 292,111 Drug store/pharmacy 1 4.3%9.8%n/a12 0Lowes Companies,Inc.United States 96,250 96,250 Home improvement 2 8.2%7.4%8.8%13 0Ahold DelhaizeNetherlands 89,381 5 89,381 5Supermarket 10 3.9%1.2%3.0%14 1Tesco PLCUnited Kingdom 82,881 84,145 Hy
302、permarket/supercenter 5 1.9%5.7%2.4%15 4Seven&i Holdings Co.,Ltd.Japan 76,912 5 78,458 5Convenience/forecourt store 18 9.0%54.7%2.6%16 1Edeka-VerbundGermany 72,462 e5 74,129 5Supermarket 1 4.8%2.3%n/a17 -3Aeon Co.,Ltd.Japan 72,190 78,155 5Hypermarket/supercenter 11 1.0%1.2%0.7%18 -2Albertsons Compan
303、ies,Inc.United States 71,887 71,887 Supermarket 1 3.8%3.2%2.3%19 -1Rewe GroupGermany 62,735 5 81,998 5Supermarket 10 5.6%-2.2%1.1%20 10LVMH Mot Hennessy-Louis Vuitton S.A.France 56,305 75,920 5Other specialty 80 14.4%51.4%19.8%21 1Centres Distributeurs E.LeclercFrance 54,385 e5 60,060 ge5Supermarket
304、 6 4.5%11.7%n/aGlobal Powers of Retailing Top 250,FY2021Source:Deloitte Global.Global Powers of Retailing 2023.Analysis of financial performance and operations for fiscal years ended between 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private com
305、panies and other sources.5 Revenue includes wholesale and retail salesn/a=not availablene=not in existencee=estimateg=gross turnover as reported by company1 Change in ranking versus FY2020 ranking from the Global Powers of Retailing 2022 report 2 May include results from non-retail operations3 Compo
306、und annual growth rate4 Net profit margin based on total consolidated revenue and net income.May include resultsfrom non-retail operations if these are 50%of group revenuee39Global Powers of Retailing 2023|Top 250FY2021 retail revenue rankChange in rank from FY20201Name of companyLocation/Geography
307、of originFY2021 retail revenue(US$M)FY2021 parent company/group revenue2(US$M)Dominant operational format#countries/geographies of operationFY2016-2021 retail revenue CAGR3FY2020-2021 retail revenue growthFY2021 Net profit margin422 -2Best Buy Co.,Inc.United States 51,761 51,761 Electronics specialt
308、y 2 5.6%9.5%4.7%23 10The TJX Companies,Inc.United States 48,550 48,550 Apparel/footwear specialty 9 7.9%51.1%6.8%24 -3Publix Super Markets,Inc.United States 48,394 48,394 Supermarket 1 7.1%7.1%9.1%25 -1The IKEA Group(INGKA Holding B.V.)Netherlands 44,699 47,549 Other specialty 32 1.8%6.3%4.0%26 0ITM
309、 Dveloppement International(Intermarch)France 43,626 e5 59,755 g5Supermarket 4 4.9%6.0%n/a27 -2Loblaw Companies LimitedCanada 41,683 5 42,402 5Hypermarket/supercenter 1 2.9%0.8%3.7%28 -5Woolworths LimitedAustralia 41,320 5 44,122 5Supermarket 2 1.0%2.3%13.1%29 13Alibaba Group Holding Limited/New Ret
310、ail&Direct SalesHong Kong SAR 40,645 1,32,869 Hypermarket/supercenter 1 153.1%42.7%n/a30 -3J Sainsbury plcUnited Kingdom 40,414 41,007 Hypermarket/supercenter 2 2.7%3.0%2.9%31 -3Casino Guichard-Perrachon S.A.France 36,117 36,713 5Hypermarket/supercenter 27-3.2%-4.3%-1.3%32 -3ELO SA(formerly Auchan H
311、olding SA)France 36,111 36,755 5Hypermarket/supercenter 12-10.0%-3.4%1.2%33 -1Dollar General CorporationUnited States 34,220 34,220 Discount store 1 9.3%1.4%7.0%34 0H-E-B Grocery Company LP(formerly H.E.Butt Grocery Company)United States 33,000 e 33,000 e Supermarket 1 7.5%3.1%n/a35 10Inditex,S.A.Sp
312、ain 32,567 5 32,567 5Apparel/footwear specialty 215 3.5%35.8%11.7%36newAsda Group LimitedUnited Kingdom 32,297 32,297 Hypermarket/supercenter 1 n/a3.2%4.3%37 0Mercadona,S.A.Spain 30,168 30,168 Supermarket 2 5.2%3.4%2.7%38 3Groupe Adeo SAFrance 30,035 5 31,077 5Home improvement 13 9.4%17.5%5.5%39 -1X
313、5 Retail Group N.V.Russia 29,831 5 29,906 5Discount store 1 16.3%11.3%1.9%40 -5Coles Group LimitedAustralia 28,547 28,820 Supermarket 1 0.1%2.1%2.6%Source:Deloitte Global.Global Powers of Retailing 2023.Analysis of financial performance and operations for fiscal years ended between 1 July 2021 to 30
314、 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.5 Revenue includes wholesale and retail salesn/a=not availablene=not in existencee=estimateg=gross turnover as reported by company1 Change in ranking versus FY2020 ranking from the Gl
315、obal Powers of Retailing 2022 report 2 May include results from non-retail operations3 Compound annual growth rate4 Net profit margin based on total consolidated revenue and net income.May include resultsfrom non-retail operations if these are 50%of group revenuee40Global Powers of Retailing 2023|To
316、p 250FY2021 retail revenue rankChange in rank from FY20201Name of companyLocation/Geography of originFY2021 retail revenue(US$M)FY2021 parent company/group revenue2(US$M)Dominant operational format#countries/geographies of operationFY2016-2021 retail revenue CAGR3FY2020-2021 retail revenue growthFY2
317、021 Net profit margin441 -5Migros-Genossenschafts Bund Switzerland 28,322 e5 31,643 5Hypermarket/supercenter 3 1.7%-3.1%2.3%42 1Systme U,Centrale NationaleFrance 27,949 e5 33,813 g5Supermarket 7 3.9%5.4%n/a43 -4Coop Group Switzerland 27,559 e5 34,858 Supermarket 8 2.7%4.7%2.2%44 -4Dollar Tree,Inc.Un
318、ited States 26,321 26,321 Discount store 2 4.9%3.2%5.0%45 1Ceconomy AGGermany 25,527 25,527 Electronics specialty 13-0.5%2.5%1.2%46 1Wm Morrison Supermarkets PLCUnited Kingdom 24,793 e5 24,793 e5Supermarket 1 2.0%2.5%-0.8%47 2Jernimo Martins,SGPS,S.A.Portugal 24,697 24,697 Discount store 3 7.4%8.3%2
319、.3%48 -4Metro AGGermany 24,620 29,595 5Cash&carry/warehouse club 24-8.8%-5.0%-0.2%49 3PJSC MagnitRussia 24,520 25,176 5Convenience/forecourt store 1 11.1%19.7%2.6%50 8Macys,Inc.United States 24,460 5 24,460 5Department store 3-1.1%41.0%5.8%51 -1Empire Company LimitedCanada 24,034 24,177 5Supermarket
320、 1 4.8%6.7%2.7%52 2H&M Hennes&Mauritz ABSweden 23,343 5 23,343 5Apparel/footwear specialty 75 0.7%6.4%5.5%53 3Reliance Retail LimitedIndia 22,823 22,826 Supermarket 1 45.1%24.3%2.9%54 -1A.S.Watson GroupHong Kong SAR 22,334 5 22,334 5Drug store/pharmacy 28 2.8%8.8%n/a55 -7Wesfarmers LimitedAustralia
321、22,087 26,712 5Home improvement 4-13.6%2.3%6.4%56 -5Meijer,Inc.United States 21,000 e 22,000 e Hypermarket/supercenter 1 3.2%0.0%n/a57 -2Fast Retailing Co.,Ltd.Japan 19,884 5 19,908 5Apparel/footwear specialty 24 3.6%6.2%8.2%58 -27S Co.,Ltd.China 19,834 21,523 Electronics specialty 1-2.3%-46.3%-31.8
322、%59 0NIKE,Inc./NIKE DirectUnited States 19,657 46,710 5Apparel/footwear specialty 74 16.7%14.7%n/a60 -3E-MART Inc.South Korea 19,373 5 21,761 5Supermarket 6 10.8%7.9%6.4%Source:Deloitte Global.Global Powers of Retailing 2023.Analysis of financial performance and operations for fiscal years ended bet
323、ween 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.5 Revenue includes wholesale and retail salesn/a=not availablene=not in existencee=estimateg=gross turnover as reported by company1 Change in ranking versus FY20
324、20 ranking from the Global Powers of Retailing 2022 report 2 May include results from non-retail operations3 Compound annual growth rate4 Net profit margin based on total consolidated revenue and net income.May include resultsfrom non-retail operations if these are 50%of group revenuee41Global Power
325、s of Retailing 2023|Top 250FY2021 retail revenue rankChange in rank from FY20201Name of companyLocation/Geography of originFY2021 retail revenue(US$M)FY2021 parent company/group revenue2(US$M)Dominant operational format#countries/geographies of operationFY2016-2021 retail revenue CAGR3FY2020-2021 re
326、tail revenue growthFY2021 Net profit margin461 24Ross Stores,Inc.United States 18,916 18,916 Apparel/footwear specialty 1 8.0%50.9%9.1%62 4Kohls CorporationUnited States 18,471 19,433 Department store 1-0.2%22.9%4.8%63 0Kingfisher plcUnited Kingdom 18,117 18,117 Home improvement 8 3.3%6.8%6.4%64 -3C
327、onad Consorzio Nazionale,Dettaglianti Soc.Coop.a.r.l.Italy 18,089 e5 20,099 g5Supermarket 5 6.5%6.5%n/a65 -5CP ALL Plc.Thailand 17,637 5 18,335 5Convenience/forecourt store 2 5.4%7.5%2.1%66 -4Rite Aid CorporationUnited States 17,495 24,568 Drug store/pharmacy 1-8.2%6.9%-2.2%67 0Vipshop Holdings Limi
328、tedChina 17,459 18,369 Non-store 1 17.0%16.9%4.0%68 25Compagnie Financire Richemont SASwitzerland 17,005 22,276 5Other specialty 52 18.0%45.8%10.8%69 26Kering S.A.France 16,898 e 20,861 5Apparel/footwear specialty 95 15.4%39.9%18.5%70 5Otto(GmbH&Co KG)Germany 16,834 18,778 Non-store 30 8.0%21.2%11.3
329、%71 3The Gap,Inc.United States 16,670 5 16,670 5Apparel/footwear specialty 40 1.4%20.8%1.5%72 -8BJs Wholesale Club Holdings,Inc.United States 16,667 16,667 Cash&carry/warehouse club 1 6.2%8.0%2.6%73 15Alimentation Couche-Tard Inc.Canada 16,604 62,810 Convenience/forecourt store 22 9.1%4.6%n/a74 24Co
330、upang,Inc.South Korea 16,488 18,406 Non-store 1 61.7%49.3%-8.4%75 7Dcathlon S.A.France 16,315 16,315 Other specialty 67 6.7%21.1%6.6%76 5FEMSA Comercio,S.A.de C.V.Mexico 15,351 15,351 Convenience/forecourt store 6 8.3%11.0%n/a77 -5Spar Holding AG Austria 14,979 5 15,057 5Supermarket 8 6.1%4.1%2.0%78
331、 -13Pan Pacific International HoldingsJapan 14,968 15,600 Discount department store 7 17.0%7.6%3.4%79 -6John Lewis Partnership plcUnited Kingdom 14,894 5 14,894 5Supermarket 2 1.6%0.6%-0.6%Source:Deloitte Global.Global Powers of Retailing 2023.Analysis of financial performance and operations for fis
332、cal years ended between 1 July 2021 to 30 June 2022 using company annual reports,Supermarket News,Forbes Americas largest private companies and other sources.5 Revenue includes wholesale and retail salesn/a=not availablene=not in existencee=estimateg=gross turnover as reported by company1 Change in
333、ranking versus FY2020 ranking from the Global Powers of Retailing 2022 report 2 May include results from non-retail operations3 Compound annual growth rate4 Net profit margin based on total consolidated revenue and net income.May include resultsfrom non-retail operations if these are 50%of group revenuee42Global Powers of Retailing 2023|Top 250FY2021 retail revenue rankChange in rank from FY20201N