Each January we look forward to the next edition of Deloitte’s outstanding report on global retail trends titled “Deloitte Global Powers of Retailing”. This report gives the reader a global view of our industry and highlights the major influences that will shape it in the year ahead.
This year’s report focusses on the “Digital Gap” between what shoppers are increasingly expecting from retailers and what functionality they are actually delivering.
Pouring over the Top 250 retailers section is great reading. Some highlights for us include: 1) Costco is now the #2 retailer globally and is growing at nearly three times of Walmart, 2) Impressive growth from Kroger and Walgreens driven by acquisitions, 3) Amazing growth by Amazon which has had a compound annual growth rate (CAGR) of 26% over the past five years. Impressive!
Looking at the relative rankings of Canadian retailers is also interesting. You will find Loblaws at #29 (including the merged operations of SDM), Sobeys at #49 (9.4% CAGR based on Safeway acquisition) and Overwaitea at #229 (small but driving fast growth at 9.5% CAGR).
For the financial “nerds” among us, you will enjoy the Q-ratio discussion which shows that Canadian retail stocks are trading well below the value of their assets, making them tempting takeover targets, especially with a $0.70 Canadian dollar.
We hope you enjoy this report as much as we do! Happy Reading
Download the full report here: