Global Powers of Retailing 2023
Deloitte’s annual report ”Global Powers of Retailing 2023” examines how the Retail sector has performed internationally. It highlights the top 250 retailers, discusses key trends and developments and looks ahead.
The Retail top
The Global Powers of Retailing 2023 indicates that the top 250 retailers achieved sales growth of 8.5% year-on-year, up from 5.2% in the previous year. The ”apparel and accessories” sector achieved the highest growth at 31.3% and FMCG achieved 5% growth.
The list of the top 10 retailers shows some changes. Despite Covid-19 and inflation woes, the top five remain unchanged. JD.com climbed to spot seven thanks to 25.1% sales growth and is also the fastest-growing retailer. Interestingly, Action is among the most substantial growing retailers in the world. It thus climbs into the top retail spot. The full report further analyses the fastest-growing retailers, new entrants and the future of retail. Walmart and Amazon still lead at the top.
Online & sustainability
The majority of the top 10 retailers increased their digital capabilities. By Covid-19, retailers have benefited from the shift to online shopping. Most of the top 10 retailers actively enhanced their digital capabilities through in-store technologies or by expanding their omnichannel offerings.
73% of consumer industry Chief Experience Officers (CXOs) who increased their investments in sustainability in the past year said it remains high on the agenda.
So the focus on sustainability remains, but the type of investment shifts. Four areas of focus can be seen:
- The resale market
- The need to embed sustainability throughout the supply chain
- The Role of Technology in Sustainability
- Compliance with ESG-related regulations and frameworks.
More and more sustainability initiatives are being incorporated into major retailers’ programmes. For example, Lululemon’s new programme allows customers to buy and sell slightly used products. Ahold Delhaize is working hard to reduce Scope 3 emissions in their shops at both group and local levels. Amazon’s Grade & Resell programme allows resellers to resell returned products at marketable prices.
Dr Ira Kalish, chief global economist at Deloitte, explains that the factors that boosted inflation are now moving in the opposite direction. Inflation saw stagnation as a result. Supply chains will stabilise once the Covid-19 situation in China is resolved. Further, labour markets remain on edge due to labour shortages. Central banks are likely to stop raising interest rates. The USA will try to avoid recession, while Europe, when recession comes, will feel it. China’s economy will recover slowly, as will Japan’s, and India will grow hard in the future.
Read the full report ”Global Powers of Retailing 2023 here.