My favorite report on the global retail industry has just been released and you need to get a copy and give it a good read.
This report reviews the performance of the Top 250 retailers in the world based on 2009 data – the latest available. It also reviews the global retail landscape with commentary on trends and a special theme each year.
This year’s theme is “Leaving Home” and spotlights the global path most of the biggest retailers are taking in order to hunt for growth.
This is particularly relevant for the Canadian industry as our market is increasingly attractive for US retailers, with Target, Kohl’s, Victoria’s Secret and many others making their intention to enter Canada known in recent months.
The results also highlight 2009 sales data, one of the toughest years in retail since the great depression.
Based on a top-line review here are some of my observations from the report:
The Usual Suspects:
The Top 10 Global Retailers is an exclusive club and its members stayed the same. The ranking of each of these ten companies was also relatively stable, however huge sales declines by The Home Depot saw it fall from the # 7 spot to the # 9 spot. This allowed Costco and Aldi to move up the ranking to the #7 and # 8 spots respectively.
Sales Declines for the Top 10 Retailers:
In what might be a first for this report the combined sales of the Top 10 fell from $1151.7 billion to $1127.4 billion (USD) in 2009. Part of this decline is due to the weaker Euro and the report’s USD base, which impacted Euro centric retailers, with only Aldi showing growth in this group. Among US retailers, Walmart, Kroger and Target all saw sales increases while Home Depot and Costco declined.
Add One More Canuck To The List:
Canada added one more retailer to the global Top 250 list in 2009, the Liquor Control Board of Ontario (LCBO), that provinces crown-owned Liquor monopoly, and the world’s biggest purchaser of alcoholic beverages. Maybe it is a sign of the difficult economic conditions?
Loblaw, our top retailer saw its ranking slip from #37 worldwide to #40 due to flat sales in 2009 while Empire (Sobeys) saw gains related to the purchase of Thrifty Foods.
The only change in position among the Canadian retailers saw Canadian Tire fall one spot to #7 allowing HBC to move up to #6. Both Canadian Tire and RONA saw sales declines, as did their peers in the Home Improvement sector Home Depot and Lowe’s.
Finally, keep in mind when reading the report that currency exchange shifts account for some of the advances / declines.
I am sure that you will find many actionable insights from this valuable free report. Be sure to download a copy today and share your observations with your colleagues.
We have also updated our summary charts in the Canadian Retailer Year In Review, which you can now download here.