Reliance Retail is the only Indian company to figure in the Top 250 global retail companies at the 94th position. Reliance also grabbed sixth position among the fastest growing 50 retail companies, according to a study by Deloitte.
Reliance retail with annual revenue of $10649 million in FY17 moved up 95 positions for the 94th slot by doubling its revenue reported in FY16. a CAGR of 44.8 per cent between FY12 and FY17 helped the company grab the 6th slot among the Fastest 50 retail companies. It was a new entrant in the Fastest 50 list in FY16.
Reliance’s retail segment witnessed robust operating performance, driven by major growth across its grocery, consumer electronics, and fashion and lifestyle businesses. This was supported by a combination of store expansion and same store sales growth across its store concepts, found the global study by Deloitte.
Among the Top 250, Walmart retained its position as the world’s largest retailer with an improvement in its retail revenue growth by 3 per cent in FY2017. Major growth drivers have been the acquisition of e-commerce websites such as Jet.com, ModCloth, Shoes.com, Moosejaw, and Bonobos; greater investments in store remodelling to integrate its store and digital businesses and investment in store wages. Walmart’s recent initiatives include the acquisition of Indian retailer Flipkart, and its partnership with Japanese retailer Rakuten.
The second and third slots were occupied by Coastca Wholesale and Kroger. With 25.3 per cent growth in retail revenue, Amazon.com moved up two positions for the fourth slot.
Europe had the highest number of Top 250 retailers, with 87 companies based in the region, up from 82 in FY2016. Its share of Top 250 revenue was 33.8 per cent. The fast-moving consumer goods sector was the key driver of the Top 250 metrics. The 138 companies generated 66.2 per cent of the retail revenue in FY2017. Eight of the Top 10 companies in the Top 250 retailers belong to the FMCG sector.
The retailers continued to grow as a result of increased merger and acquisition activity, new store openings and robust e-commerce activity, despite sluggish growth in Europe, China, and Japan.
“The global economy is currently at a turning point. Until early 2018, the global economy displayed strong growth. With inflation accelerating in major markets, governments making shifts in monetary and fiscal policies, and most of the emerging markets experiencing significant currency depreciation the global economy will slow down in the near future. For retailers, this change will mean slower consumer spending growth, higher consumer prices, and disrupted global supply chains,” said Ira Kalish, Deloitte Global Chief Economist.
However, despite deceleration in the global economy, the consumer and investor sentiment continues to remain positive in India, finds Deloitte. “Our global reports highlight, out of the top 10 companies on the top 250 list, eight were FMCG companies and that sector has been a strong reason for the India retail story. Additionally, mergers and acquisitions especially in the e-commerce segment continued as retailers tried to achieve better economies of scale and leverage consumer demand for e-commerce,” said Anil Talreja, Partner, Deloitte India.