2 5 2011 Global Powers Of Retailing

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Global Powers of
Retailing 2011

Global retail
perspectives
from Deloitte.

Hidden heroes – Consumer 2020 – Indian retail market:
emerging retail reading the signs changing with the
markets beyond China. The forces likely to drive changing times
Ten countries. Ten unique consumer behavior in the The implications of 100%
markets. All set to play a years ahead. FDI for global retailers.
role in retail globalization.

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Contents

Global economic outlook G4

Lessons of retail globalization G8

Global Powers of Retailing Top 250 highlights G10

Global Powers of Retailing geographical analysis G18

Top 250 develop presence in emerging markets G22

Global Powers of Retailing product sector analysis G24

Top 250 newcomers G27

Fastest 50 pursue multiple paths G27

Q ratio analysis for Global Powers G30

Study methodology and data sources G32

Consumer Business contacts G33

Global economic outlook
The economic situation for retailers
The past year began with such promise and ended with such Overall, the outlook for 2011 is for strong global economic
uncertainty. At the start of 2010, the world was relieved to have improvement, with the preponderance of growth taking place in
avoided a more grim economic result. The downturn of 2009 was the emerging markets. In the developed world, however, growth is
worst in decades, but it was not as bad as what might have not expected to be exceptional. Let us examine the outlook in each
happened. Government intervention to recapitalize banks, stimulate major market and consider the potential impact on retailers and
demand and flood the market with liquidity helped to avoid their suppliers.
pandemonium. However, all of this was not sufficient to start a robust
recovery – at least not in the developed economies of North America, United States
Europe and Japan. There, growth has been modest, and thankfully, The U.S. economy did not perform especially well in 2010, but 2011
inflation has been low. On the other hand, strong growth came to the looks to be more promising due to several factors. First, there is
emerging world and with it the risk of rising inflation. Hence, as 2011 considerable pent-up consumer demand. In addition, consumer cash
begins, retailers worry about inadequate demand in rich countries and flow has markedly improved, so there ought to be a pickup in
overheating in emerging countries. In addition, they now face consumer spending. Second, the aggressive expansionary policy of the
concerns about exchange rate volatility, changing fiscal policy and the Federal Reserve, known as quantitative easing, is likely to push down
sustainability of recovery in some markets. real interest rates and, therefore, boost demand for credit. It could
also lead to increased values for various financial assets. The result, it is
One problem is that imbalances continue to haunt the global hoped, will be a stimulus for consumer and business spending. Finally,
economy. Interest rates in developed countries are unusually low, although a high degree of structural unemployment remains, there are
reflecting aggressive monetary policy and weak demand for credit. indications that job growth will pick up speed in 2011. This would
Thus, money is flowing out of these countries and into emerging boost consumer spending and help to reduce worrisome budget
markets with higher interest rates. Yet in those countries where deficits at the federal and state levels.
growth is strong, the inflow of capital is putting upward pressure on
currency values, thereby hurting export competitiveness. At the same Still, there are some negative factors that could restrain economic
time, rapid growth in emerging markets is creating new inflationary recovery. Slowing growth overseas could hamper export growth,
pressures, which have led some central banks to tighten monetary which was strong throughout 2010. In addition, a tighter fiscal policy
policy, thereby putting additional upward pressure on currencies. could have a negative impact on overall economic activity. Finally,
Now, many emerging governments are intervening in currency continued private sector deleveraging in the wake of the financial crisis
markets to hold down their currencies in order to improve export could hamper growth.
competitiveness – but this risks exacerbating inflation. Moreover, if
every country tries to devalue its currency, no currency will decline in As for U.S. consumers, they appear to be operating within the realm
value, but all countries will increase their money supplies, thus of a “new normal.” After a near orgy of debt-financed spending over
generating inflation. the past decade, greater sobriety is now in evidence. While good for
individual households, this new frugality is not necessarily good for
And so the global economy remains imbalanced. Countries that have retailers. It is manifested in greater value orientation, more price
traditionally relied on exports (such as China, Japan and Germany) and sensitivity, less discretionary spending generally and less spending on
need to move toward domestic-led growth continue to depend big-ticket items in particular. In the past decade, much spending was
heavily on exports. Countries that relied too heavily on their fueled by the housing market; in the coming years, housing is likely to
consumers (such as the United States and the U.K.) and need to be constrained if not dormant. While low prices of homes boost
export more now face competitive devaluations in their target export affordability, for many households it means having mortgage debt
markets, thereby hurting their own export competitiveness. Failure to in excess of the value of the home. This fact, applicable to about
adjust to new realities will only delay the day of reckoning, yet making one-quarter of all U.S. mortgage holders, has a negative impact on
the necessary adjustments involves short-term pain. spending and mobility.

Affluent countries that nearly experienced economic meltdown now For U.S. retailers, the reality of the new normal has meant substantial
face tattered financial markets. Credit fails to grow as consumers and cost cutting, lean inventories and modest expansion. As a result,
businesses hoard cash and continue to deleverage. Debate rages over despite slow growth, many U.S. retailers have become well positioned
whether central banks and governments should respond by becoming for the coming year. Those with strong value propositions or clear
more aggressive, but an aggressive stance risks continuation of global differentiation are likely to do well. Still, there is probably more retail
imbalances. capacity than the country needs, and further consolidation is not out
of the question.

G4 STORES/January 2011 www.deloitte.com/consumerbusiness

We are also likely to see spending restraint in the realm of Germany, with strong productivity growth and modest wage gains,
discretionary merchandise. Thus, retailers focused on home-related reduced its unit labor costs and was able to boost its exports to the
and other big-ticket items may face challenges. The bifurcation of U.S. rest of Europe and the world. On the other hand, Greece, Spain and
retailing, so evident the past decade, is likely to accelerate. This means Portugal saw only modest productivity gains and declining
strength for highly price-oriented retailers and those focused on competitiveness.
superior customer experience – and trouble for those in between.
Clearly the challenges in the U.S. market will stimulate some retailers At the same time, being in the common currency area enabled these
to invest outside the United States. countries to borrow cheaply and accumulate excessive debt. In any
other part of the world, this situation would have resulted in currency
Western Europe devaluation for Greece or Portugal. In this case, that cannot happen.
Although Europe as a whole bounced back in 2010, a confluence of Hence, there was a need for structural reform. Although the EU
factors is likely to cause a slowdown in growth in 2011. More provided a large financial backstop for its wayward members, the
importantly from a retail perspective, most of Europe’s growth is reforms undertaken have not convinced the markets that problems
coming from exports rather than consumer spending. In Germany, for have been solved. Consequently, Europe seems to muddle from one
example, which had strong export-driven economic growth in 2010, crisis to the next.
consumer spending remained relatively stagnant. On the other hand,
the modest and declining unemployment rate in Germany bodes well What happens next? The answer is that uncertainty remains. Some
for a modest pickup in consumer demand. observers question whether the euro itself will survive, but the cost
of ending the Eurozone would be catastrophic, especially for strong
Notably, economic policy within Europe has been aimed at reducing exporters like Germany. That is because an end to the Eurozone would
budget deficits rather than stimulating growth. Most governments are lead to a significant appreciation in the value of a new deutschemark,
currently engaged in fiscal contraction, which entails tax increases and resulting in competitiveness problems for Germany. Instead, a more
spending reductions. The European Central Bank (ECB), unlike the likely scenario is for a new debate about how to make the eurozone
United States and Japan, has not engaged in quantitative easing and work better. This could entail greater fiscal integration, more serious
remains focused on minimizing inflation. Finally, European credit punishments for wayward countries and more predictable procedures
markets remain troubled by continuing sovereign debt problems and for dealing with crises. As of this writing, a new procedure for dealing
bad bank assets. The result is that the only factors stimulating with troubled countries is in the works.
economic activity in Europe are the weak euro and strong growth in
emerging markets, which have boosted exports. Meanwhile, U.K. outlook
consumer spending is going nowhere, and fiscal contraction is likely In the U.K., the government is engaged in a bold experiment in
to have a negative impact in the year ahead. austerity, drastically cutting the budget deficit in order to boost market
confidence. The goal is to make sure that Britain avoids the problems
The other interesting thing about Europe’s outlook is that the that some other European countries have had with sovereign debt.
continent faces a two-track economic outlook. Germany, Sweden, The Critics say that such a policy will slow economic growth unnecessarily
Netherlands and other northern countries are performing well, largely and create social unrest. Supporters point to more robust economic
based on export strength. In contrast, the peripheral nations of the EU performance in 2010 than had been expected, even after
face the prospect of recession or slow growth, largely due to massive announcement of the budget measures. They also point to strength in
government austerity combined with troubled credit markets. In some the private sector, which might help to offset the deleveraging of the
cases, like Ireland and Spain, the outlook is hurt by the need for banks public sector. For retailers, the rise in the value added tax (VAT) will
to repair their balance sheets following the collapse of a housing price surely have some negative impact on spending.
bubble. In other cases (such as Greece), the problem is a history of
government largesse combined with failure to boost productivity. The good news in the United Kingdom is that, with low interest rates,
In any event, the recent recession shocked Europe into confronting the otherwise troubled housing sector has not been damaged as
long-simmering problems. much as might have been expected. Unemployment is far lower than
expected as well. But there are troubling headwinds for the consumer
Euro outlook sector. These include a decline in real wages (the result of modest
All the turmoil in Europe last year caused considerable volatility for the wage gains combined with higher inflation), an abnormally high level
value of the euro; it also caused concern about the sustainability of of consumer debt and debt service and substantially tightened
the euro project. The underlying problem was the imbalance within consumer credit conditions. These factors, combined with government
the Eurozone. austerity, suggest that consumer demand in the coming year will be
modest at best.

www.deloitte.com/consumerbusiness STORES/January 2011 G5

Japan Still, the global economy will probably be better off if China undergoes
Japan’s economy began 2010 with unexpectedly strong growth. a soft landing rather than a future crisis – and China may be better off
Unfortunately, by late 2010 the economy was decelerating, and the as well. History shows that China tends to face increased social unrest
outlook for 2011 is not good. The problem is that the main source of and wrenching economic change during periods of inflation. Clearly
growth has been exports, and with a strong and rising currency, the Chinese authorities want to avoid such an occurrence.
Japan’s exports are becoming uncompetitive. Also, a slowdown in
demand in many foreign markets has hurt the growth of Japan’s Exchange rates
exports. The result is that, by the end of 2010, exports were no longer One of the big issues in the global economy is the exchange rate
growing – and neither was the economy. Slow growth combined with between China and the United States. China has begun to gradually
modest money supply growth led to deflation (falling prices), which revalue its currency. This will be beneficial to China as it will act to
tends to discourage consumer and business spending. In addition, suppress inflation and help the country shift away from export
deflation exacerbates the problems of debtors, thereby harming bank dependence and toward growth based more on consumer demand.
profitability and causing troubles in credit markets. Although the Bank Yet China’s revaluation has been gradual, lest the country cause
of Japan has instituted a modest policy of quantitative easing, there is serious dislocation for exporters. Finding the right balance between
debate as to whether this is sufficient to create some inflation and concerns over inflation and export competitiveness will be a challenge
boost the economy. in the year ahead. At the same time, other Asian countries have been
reluctant to allow their currencies to rise more rapidly for fear that
As for the Japanese consumer, there was a modest pickup in spending their exports to China will become less competitive.
in 2010 due to temporary government incentives. The end of such
incentives means no government stimulus for spending in 2011, Finally, the United States’ aggressive monetary policy is pushing down
barring a change in policy. In addition, business investment remains the dollar and boosting the value of many emerging market
weak as companies demonstrate low confidence in future growth. currencies. For China, this means either further upward pressure on
the renminbi or a greater cost to holding down the value of the
For Japan’s retailers, the expected business environment suggests renminbi. In any event, 2011 is likely to see continued controversy
weak sales growth and poor pricing power. It will not be surprising about currency values, with the risk that protectionism could rear its
to see Japanese retailers continue to invest in global expansion. ugly head. Meanwhile, China and other Asian economies face the risk
of greater inflation if they fail to allow currency appreciation. Although
China China is fighting inflation with higher interest rates, this has the
There have been signs of a soft landing in China after fears that the perverse effect of boosting flows of hot money into China, thereby
economy would slow down too much. Last year the government leading to money supply growth and potential inflation.
began the process of tightening monetary policy in order to slow Only revaluation would allow for slower money supply growth.
growth and defuse inflationary pressures. By initially pushing down
equity prices in response, global financial market participants Consumer spending
demonstrated concern that China might be headed for a hard What does all of this mean for China’s retail market? The good news is
landing – that is, they were worried that government policy would be that, through all the turmoil of the past two years, Chinese retail sales
too blunt and that the economy would slow down excessively. The never skipped a beat. Growth has been steady and strong. This is likely
more gradual slowdown that China has experienced lately has been to continue, especially as China gradually transitions away from export
welcomed by global markets, though they have been alarmed by the dependence. On the other hand, rising inflation, along with possible
rise in inflation. However, this rise is not surprising as the impact of a price controls by the government, could cause difficulties for retailers.
monetary tightening on inflation will likely take time. A reasonable Rising commodity prices also threaten margins. Finally, although
expectation is that inflation will continue to rise before starting to China’s overall growth will decline somewhat in 2011, it is expected
decline sometime later in 2011. that growth in secondary cities and regions will remain strong.
This is where a disproportionate share of retail investment is likely
One reason for global anxiety about the rate of deceleration in China to take place.
is that the country has become an engine of growth for the world.
Rising domestic demand in China leads to increased imports, thereby India
stimulating exports in other parts of the world, including the United India’s economy has been growing quite rapidly following the end of
States, Germany and many emerging commodity exporting countries. the global recession. Growth has been so strong, in fact, that inflation
As domestic demand decelerates, there could be a negative impact on has started to rise to uncomfortable levels. As a result, India’s central
global output. bank began to tighten monetary policy last year, which should lead to
a modest slowdown in growth in 2011.


A significant source of India’s economic growth in 2010 was exports: Still, there is a general consensus that such rapid growth is
Industrial production rose rapidly to meet the rising external demand considerably more than Brazil can sustain without creating serious
for India’s output. But due to rising interest rates (the result of bottlenecks that could ultimately lead to inflation.
monetary tightening), capital inflows accelerated, leading to an
appreciation of the Indian rupee. This will likely have a negative On the positive side, Rousseff will benefit from a surge in tax revenue,
impact on export growth in the near term and will contribute to the result of a strong economy, and the fiscal deficit is likely to decline
the slowdown in India’s economy in 2011. from an already relatively low level. Engineering a slowdown in
growth is not that difficult – it entails a tightening of monetary policy
Longer term, exports are well positioned to play a major role in India’s that was already well under way by late 2010. In addition, a rise in
growth. Although India has become well-known for its proclivity to the value of Brazil’s currency suggests that the rapid pace of Brazilian
export business services, this has been only a modest source of export growth will lessen somewhat in 2011. Nevertheless, that rise
growth in recent years. It cannot play a large role in India’s future as will also be the source of headaches for Brazil’s growing export sector.
India is not likely to produce sufficient numbers of skilled workers to
meet the needs of this industry. Instead, manufacturing, especially for For consumers, the outlook is very good: Brazil’s economy is expected
export purposes, can be a way to absorb large numbers of unskilled to grow at a healthy pace over the next several years. In addition, the
workers into the economy. India has already shown considerable number of households moving from poverty into the middle class is
manufacturing prowess. In addition, China’s shift toward higher expected to be significant. The growing market for lower middle
wages and higher value added production means that an opening income households will be a strong source of growth for the retailing
exists for India to produce low wage output. industry. Modern food retailers will seek to attract these consumers
through competitive pricing and modern merchandising.
India’s potential for industrial growth, combined with favorable
demographics, bodes well for strong economic growth. It also bodes Elsewhere
well for strong consumer spending growth, especially as the number The world of retailing looks most promising in emerging markets –
of young consumers rises rapidly. Unfortunately for global retailers, especially those with strong growth prospects and good
India remains largely closed to foreign retail organizations due to demographics. That means such disparate places as Turkey, Egypt,
restrictions on inbound investment. However, the current government Indonesia, Colombia and South Africa. In each of these markets, it is
favors liberalization and intends to push for an end to restrictions on expected that economic growth will be strong and that investment in
foreign retailer investment. Meanwhile, large Indian conglomerates are modern retailing will be significant. Perhaps of most interest is the fact
rapidly expanding. India’s modern retailing sector as a share of the that global retailers are increasingly talking about Africa. This region,
total industry has risen rapidly in the past few years and now accounts which failed to have significant growth for much of the last half
for roughly 15 percent of retail sales. This figure is likely to continue century, is now experiencing good growth as a result of rising
rising in the years ahead. As the retailing industry modernizes, the cost commodity prices and better governance. It will be interesting to see
of distribution will fall, supplier organizations will have an incentive to if the world’s leading players take the plunge into this last frontier of
invest in technology and consumers will gain access to cheaper and modern retailing.
safer products.
`
The cost of this, however, will be disruption to the lives of millions
of small, independent retailers.

Brazil
Brazil’s new president Dilma Rousseff is relatively lucky: The biggest
short-term challenge she faces is one that many other world leaders
would envy. That is, rather than trying to make the economy grow,
she will have to prevent the economy from growing too fast.
When Brazil experienced very rapid growth in the past (mainly in the
1950s and 1960s), such growth was usually accompanied by very high
inflation, even hyperinflation. The recent strong growth, especially the
blistering growth that took place in 2010, was unusual in that inflation
remained very low by historic standards.


Lessons of retail globalization

At a time when the global economy faces unprecedented possesses at home. In other words, rather than adapt the retailer to
uncertainty, when U.S. retail sales are struggling to recover and the market, introduce a new idea to the market. There are plenty of
Europe’s credit markets are on edge, it might not seem like the best examples of success and failure for each strategy, so there appears
time to discuss retail globalization. to be no good rule of thumb. Still, one rule does seem to apply:
whatever the strategy, the devil is in the execution.
On the other hand, global economic growth is on the mend, with
most of it taking place in emerging markets. Consumer spending is Find a competitive advantage
increasing rapidly in many of these markets. Meanwhile, home If there is no rule for choosing a strategy, then what is a retailer to
markets for developed country retailers are likely to be slow- do? The answer is to figure out what the retailer might bring to the
growing, saturated and prone to excessive regulatory interference. market that would enable it to beat the competition. This can vary
To achieve rapid growth, successful retailers will be wise to seek out greatly and depends on the nature of the competitive environment.
new territories. In an emerging market that lacks much modern retailing, simply
bringing modern supply chain management and merchandising as
Why go global? well as large financial resources might be sufficient. In a more
Retailers go global for a number of reasons. European retailers are sophisticated market, competitive advantage can come about by
more prone to globalization than American retailers because they offering a well-known global brand, a unique format, a higher level
often face restrictions on development in their domestic markets. of customer service, a more entertaining and informative customer
French hypermarkets come to mind. Due to regulations, they cannot experience or a more efficient supply chain that enables low pricing.
easily open new stores in their home market. Consequently, they
primarily seek growth elsewhere. This is why the lion’s share of Learn much about local tastes and customs
global retailers are based in Europe. The best global retailers spend substantial resources and time
learning about the local market. This entails understanding supply
Some retailers invest globally in order to latch on to fast-growing chains, regulations, sources of merchandise and, most importantly,
consumer markets, especially when their home markets are consumer tastes and habits. The latter is the most challenging.
stagnant – like Germany and Japan. Retailers expand globally in There are examples of retailers that, even after years of research, fail
order to leverage their existing assets: global purchasing to develop the right merchandising. Understanding an alien culture
relationships, a global supply chain, a unique product, a unique is enormously difficult under the best of circumstances. Using a mix
format or a well-known brand. Finally, some retailers globalize of local and expatriate managers can help to get it right. Some of
because foreign markets offer them low-hanging fruit – that is, Europe’s largest food retailers, in developing new markets, have sent
foreign retailers can bring leading-edge practices to relatively teams of managers to other markets. Often, they spend months and
unsophisticated markets. In doing so, they might blow away the sometimes years learning about consumer tastes, shopping and
competition (or at least that is their hope). living behavior, cultural attitudes and sensitivity to branding and
pricing. The end result is a compromise between using the strengths
Right now, U.S. retailers are expressing increasing interest in going of their core business at home and adjusting to differences in the
global. That is because they face a relatively slow growing market, a foreign market.
relatively leveraged and now frugal consumer and increasing market
saturation. Investing outside the United States is seen as a good way Use mostly local managerial talent
to maintain rapid growth. Moreover, the preponderance of global The best global retailers tend to rely on the fewest number of
consumer spending growth is shifting away from the United States expatriate managers. The ideal situation is for most stores to have
and toward big emerging markets. local managers. There are several reasons for this. Local managers
often possess connections to the local business community and
What are the lessons of global retailing? government. They usually have a better understanding of local
Choose a strategy – then execute it consumer culture and they often engender greater loyalty within the
It is not sufficient to decide to enter a promising market. There must organization than do foreigners.
be a strategy, and it must make sense in the context of the market
chosen. This is not a simple task; there is no scientific method for The problem with expatriates is that, although they understand the
determining the appropriate strategy. Some pundits suggest that the company culture and processes, they don’t necessarily understand
strategy must be geared toward the unique qualities of the market. the local market very well – especially when there is a language
That is, they say it is most important to adapt. Others, however, barrier. In addition, they may not be able to exert the same degree
argue that a retailer must bring to a new market the strengths it of authority on local employees as a local manager.


The challenge is to develop local talent in a way that is consistent Be prepared to invest on a large scale
with the values, culture and processes of the parent company. Often, retailers dip their toes in the water in order to get a sense of
In emerging countries like China, a larger challenge is to retain the market. This is sensible up to a point, but a profitable enterprise
well-trained talent. The problem in such markets is that rapid will only come about with sufficient economies of scale. Opening a
economic growth and massive foreign investment are conspiring to handful of stores here and there will not suffice, although many
create huge demand for skilled managerial labor. Despite increases retailers have tried this. A number of retailers have opened a few
in the number of university graduates, supply has not kept up with stores in multiple markets only to find that none of them yielded a
demand. Thus, labor costs are rising and good workers have positive return. Nearly all success stories have entailed being
multiple choices. Retaining such talent will require not only good selective about the choice of markets and then delivering sizable
compensation, but the promise of long-term career success. resources to those markets. Scale is not only important for
This will be more likely if a global company is seen as having good operational efficiency – it also enables a retailer to build a following
prospects in, and a long-term commitment to, that market. among consumers. It also convinces local suppliers and vendors that
the retailer is there to stay. Otherwise, they are often reluctant to
Develop local relationships enter into new relationships, lest they offend existing customers.
In China, a major European food retailer had trouble achieving
success largely because of a failure to build strong local supplier A new age of retail globalization?
relations. In Indonesia, a large global food retailer ran into Retail industry pundits have been predicting the imminent
difficulties when the local franchisee opened a competing store on globalization of the industry for the better part of two decades.
its own. The franchisee had acquired knowledge in the process of Although there has been plenty of globalization, the industry
working with the foreign retailer, which it then applied to its own remains far more parochial than others such as consumer products,
start-up chain. Finally, a global food retailer made countless errors in hospitality, telecommunications, and entertainment. The issue has
South America when it failed to listen to the cultural advice of its always been that retailing is a uniquely complicated business.
local partner. It is the industry that maintains the closest and most personal
relationship with consumers, often touching their lives on a weekly
There are three lessons here: first, local relationships are critical. and even daily basis. And establishing a successful personal
Even if you don’t have a partner or franchisee, you still need local relationship is far more challenging in an alien culture.
suppliers and vendors. Developing such relationships in a favorable
manner requires work. Second, it is important to find the correct Yet now may be the time that the pundits are right. As success in
local relationships: making sure that interests are properly aligned is developed markets becomes more challenging, the emerging world
important. Finally, global retailers should listen to their local partners becomes more compelling. In addition, the experience that some
and suppliers in order to better understand the local market. global players have gained by operating in emerging markets has
taught the industry valuable lessons as to what to do, and what not
Be prepared to make big mistakes to do. While it will never be easy, many more companies are now
It should be evident to even the most casual observer that global ready to take the plunge. We may be on the precipice of a new age
retailing has a steep learning curve. Mistakes will be made – of retail globalization.
sometimes big ones. The capacity to learn and change is critical,
and a commitment of time is necessary to do that. There are
probably more examples of global retailers making initial mistakes
along the way to success than there are stories of instant success.
Yet acceptance of error is not something that is part of every
company’s DNA, and with good reason. Investors often punish
mistakes in ways that affect executive compensation and even job
security. Therefore, it must be acknowledged from the start that,
to a large degree, an investment in global retailing is a gamble.
And the gambler must be willing to stay at the table for more than
one game.


Global Powers of Retailing Top 250 highlights

This issue marks the 14th year that Deloitte Touche Tohmatsu Limited (DTTL), in
conjunction with STORES Magazine, has presented the Global Powers of Retailing.
This annual report identifies the 250 largest retailers around the world based on publicly
available data for fiscal 2009 (encompassing companies’ fiscal years ended through
June 2010). The report also provides an outlook for the global economy, lessons of retail
globalization and an analysis of market capitalization in the retail industry.

Retail industry stuck in doldrums in 2009 Combined retail sales of the Top 250 totaled $3.76 trillion in 2009,
In 2009, retailers continued to endure the consequences of the down slightly from nearly $3.82 trillion recorded by 2008’s Top 250.
recession. More than one-third of the Top 250 Global Powers of The decline in aggregate sales reflects, in part, the changing
Retailing (90 companies) suffered declining sales, up from about composition of the Top 250 group from year to year. However, it is
one-quarter (61 retailers) in 2008. For the entire group, sales- mostly due to the exchange rate effects of a weaker euro, British
weighted, currency-adjusted retail sales rose a meager 1.3 percent pound, Mexican peso and other major currencies against the U.S.
as deleveraging by consumers and slow growth of credit continued dollar during the fiscal 2009 period. The major exceptions were a
to plague the industry. stronger Japanese yen and Chinese renminbi.

On the other hand, profitability showed a marked improvement in
2009 as retailers tightened their belts in anticipation of slowing
sales. To push earnings up, many companies cut costs substantially Top 250 quick stats, 2009
and adjusted their inventory levels in response to a reluctant
consumer. As a result of these efforts, the Top 250 composite net • $3.76 trillion – aggregate sales of Top 250 in US$
profit margin rose to 3.1 percent in 2009 from 2.4 percent in 2008. • $15.05 billion – average size of Top 250 retailers
• $3.075 billion – minimum sales required to be on
Of the 188 companies that reported their bottom-line results, only Top 250 list
13 operated at a loss – less than half the number of unprofitable • 1.3 percent – composite year-over-year retail sales growth
companies in 2008. About one-third (67) of reporting companies • 6.1 percent – 2004-2009 composite compound annual
saw their net profit margin decline in 2009, compared with two- growth rate in retail sales
thirds in 2008. • 3.1 percent – composite net profit margin
• 4.9 percent – composite return on assets
Based on 179 companies for which both net income and total • 1.6x – composite asset turnover
assets figures were available, composite return on assets in 2009
was 4.9 percent, up from 4 percent in 2008 for these same
companies. Asset turnover (the ratio of net sales to total assets) was
1.6x, meaning that the Top 250 retailers produced $1.60 in sales for
every $1.00 invested in assets. This was unchanged from 2008.
Despite measures to reduce inventories in line with weak sales, this
ratio indicates a fairly inefficient use of assets by many companies.


Top 250 global retailers 2009

Retail 2009 #
sales 2009 group 2009 group net Countries 2004-2009
rank Country revenue* retail sales income* Dominant of retail sales
(FY09) Name of company of origin (U.S. $mil) (U.S. $mil) (U.S. $mil) operational format operation CAGR**
1 Wal-Mart Stores, Inc. U.S. 408,214 405,046 14,848 Hypermarket/Supercenter/Superstore 16 7.3%
2 Carrefour S.A. France 121,861 119,887 609 Hypermarket/Supercenter/Superstore 36 3.4%
3 Metro AG Germany 91,389 90,850 724 Cash & Carry/Warehouse Club 33 3.0%
4 Tesco plc U.K. 90,435 90,435 3,712 Hypermarket/Supercenter/Superstore 13 10.9%
5 Schwarz Unternehmens Germany 77,221e 77,221e n/a Discount Store 25 9.8%
Treuhand KG
6 The Kroger Co. U.S. 76,733 76,733 57 Supermarket 1 6.3%
7 Costco Wholesale Corp. U.S. 71,422 69,889 1,086 Cash & Carry/Warehouse Club 9 8.2%
8 Aldi Einkauf GmbH & Co. oHG Germany 67,709e 67,709e n/a Discount Store 18 6.3%
9 The Home Depot, Inc. U.S. 66,176 66,176 2,661 Home Improvement 5 -2.0%
10 Target Corp. U.S. 65,357 63,435 2,488 DDS 1 6.8%
11 Walgreen Co. U.S. 63,335 63,335 2,006 Drug Store/Pharmacy 2 11.0%
12 Rewe-Zentral AG Germany 71,001 61,771e n/a Supermarket 13 5.3%
13 CVS Caremark Corp. U.S. 98,729 55,355 3,696 Drug Store/Pharmacy 1 14.0%
14 Edeka Zentrale AG & Co. KG Germany 58,658 55,339 n/a Supermarket 1 9.9%
15 Groupe Auchan SA France 55,326 54,057 971 Hypermarket/Supercenter/Superstore 14 5.2%
16 Seven & i Holdings Co., Ltd. Japan 54,742 52,508 604 Convenience/Forecourt Store 18 ne
17 Best Buy Co., Inc. U.S. 49,694 49,694 1,394 Electronics Specialty 15 12.6%
18 Aeon Co., Ltd. Japan 54,133 49,021 570 Hypermarket/Supercenter/Superstore 9 3.2%
19 Lowe’s Companies, Inc. U.S. 47,220 47,220 1,783 Home Improvement 2 5.3%
20 Woolworths Limited Australia 45,604 44,410 1,798 Supermarket 2 10.3%
21 Sears Holdings Corp. U.S. 44,043 44,043 297 Department Store 3 17.5%
22 Centres Distributeurs E. Leclerc France 41,002e 41,002e n/a Hypermarket/Supercenter/Superstore 6 2.2%
23 Wesfarmers Limited Australia 43,990 40,288 1,381 Supermarket 2 62.3%
24 Safeway Inc. U.S. 40,851 40,034e -1,098 Supermarket 3 2.7%
25 Koninklijke Ahold N.V Netherlands 38,945 38,945 1,247 Supermarket 10 -5.4%
26 Casino Guichard-Perrachon S.A. France 37,316 36,549 1,201 Hypermarket/Supercenter/Superstore 25 2.8%
27 ITM Développement International France 38,115e 34,071e n/a Supermarket 8
-1.2%
(Intermarché )
28 J Sainsbury plc U.K. 31,869 31,869 934 Supermarket 1 5.7%
29 SuperValu Inc. U.S. 40,597 31,637 393 Supermarket 1 24.6%
30 The IKEA Group (INGKA Sweden 29,100 29,100 n/a Other Specialty 38 10.9%
Holding B.V.)
31 Rite Aid Corporation U.S. 25,669 25,669 -507 Drug Store/Pharmacy 1 8.8%
32 Delhaize Group Belgium 27,806 25,026e 725 Supermarket 6 1.3%
33 Publix Super Markets, Inc. U.S. 24,515 24,320 1,161 Supermarket 1 5.6%
34 WM Morrison Supermarkets Plc U.K. 24,348 24,200 848 Supermarket 1 5.0%
35 Amazon.com, Inc. U.S. 24,509 23,856 902 Non-Store 7 28.6%
36 Macy’s, Inc. U.S. 23,489 23,489 350 Department Store 2 8.5%
37 Yamada Denki Co., Ltd. Japan 21,734 21,734 604 Electronics Specialty 1 12.8%
38 The TJX Companies, Inc. U.S. 20,288 20,288 1,214 Apparel/Footwear Specialty 7 6.3%
39 Mercadona, S.A. Spain 20,086 20,086 377 Supermarket 1 12.1%
40 Loblaw Companies Limited Canada 27,056 20,070e 587 Hypermarket/Supercenter/Superstore 1 2.5%
41 Migros-Genossenschafts Bund Switzerland 23,041 19,918 907 Supermarket 3 6.6%
42 Système U, Centrale Nationale France 19,692e 19,692e n/a Supermarket 3 4.0%
43 El Corte Inglés, S.A. Spain 23,048 18,759 520 Department Store 5 1.0%
44 PPR S.A. France 23,046 18,714e 1,464 Other Specialty 84 -1.6%
45 J. C. Penney Company, Inc. U.S. 17,556 17,556 251 Department Store 2 -1.0%
46 Kohl’s Corporation U.S. 17,178 17,178 991 Department Store 1 8.0%
47 Coop Italia Italy 16,495e 16,495e n/a Supermarket 1 2.6%
48 Alimentation Couche-Tard Inc. Canada 16,440 16,440 303 Convenience/Forecourt Store 9 15.4%
49 Coop Group Switzerland 17,287 16,077e 446 Supermarket 1 6.2%

*Group revenue and net income may include results from non-retail n/a = not available
operations ne = not in existence (created by merger or divestiture)
**CAGR = Compound annual growth rate e = estimate



Retail 2009 #
50 Inditex S.A. Spain 15,545 15,424 1,854 Apparel/Footwear Specialty 74 15.3%
51 Louis Delhaize S.A. Belgium 15,411e 15,411e n/a Hypermarket/Supercenter/Superstore 8 3.2%
52 Kingfisher plc U.K. 16,595 15,381 608 Home Improvement 8 4.7%
53 Marks & Spencer Group Plc U.K. 15,224 15,224 835 Department Store 39 3.7%
54 H.E. Butt Grocery Company U.S. 15,039e 15,039e n/a Supermarket 2 5.4%
55 AS Watson & Company, Ltd. Hong Kong SAR 14,977 14,977 n/a Drug Store/Pharmacy 34 11.2%
56 Meijer, Inc. U.S. 14,960e 14,960e n/a Hypermarket/Supercenter/Superstore 1 4.1%
57 Staples, Inc. U.S. 24,275 14,635e 757 Other Specialty 23 7.4%
58 Empire Company Limited Canada 14,483 14,228 287 Supermarket 1 4.6%
59 The Gap, Inc. U.S. 14,197 14,197 1,102 Apparel/Footwear Specialty 25 -2.7%
60 Groupe Adeo SA France 13,807e 13,807e 662 Home Improvement 9 14.6%
61 LVMH Moët Hennessy-Louis Vuitton France 23,783 13,794 2,752 Other Specialty 79 n/a
62 Isetan Mitsukoshi Holdings Ltd. Japan 13,924 13,575 -677 Department Store 11 ne
63 Toys “R” Us, Inc. U.S. 13,568 13,568 304 Other Specialty 35 4.1%
64 DSG International plc U.K. 13,663 13,309e 92 Electronics Specialty 28 4.9%
65 H & M Hennes & Mauritz AB Sweden 13,218 13,218 2,136 Apparel/Footwear Specialty 36 13.6%
66 Co-operative Group Ltd. U.K. 19,557 13,066 251 Supermarket 1 16.6%
67 Conad Consorzio Nazionale, Italy 12,969 12,969 n/a Supermarket 2 5.6%
Dettaglianti Soc. Coop. a.r.l.
68 S Group Finland 16,299 12,747 377 Supermarket 5 10.3%
69 Otto (GmbH & Co KG) Germany 14,277 12,572 282 Non-Store 30 -1.3%
70 Bailian (Brilliance) Group China 14,075 12,257e n/a Supermarket 1 ne
71 ICA AB Sweden 12,463 12,230 209 Supermarket 5 6.4%
72 SPAR Österreichische Austria 12,221e 12,221e n/a Supermarket 7 6.9%
Warenhandels-AG
73 Dell Inc. U.S. 52,902 12,054 1,433 Non-Store 177 1.2%
74 Alliance Boots GmbH U.K. 29,887 12,004 964 Drug Store/Pharmacy 7 9.0%
75 Grupo Pão de Açúcar Brazil 11,819 11,819 324 Hypermarket/Supercenter/Superstore 1 13.1%
76 Dollar General Corp. U.S. 11,796 11,796 339 Discount Store 1 9.0%
77 UNY Co., Ltd. Japan 12,150 11,785e -33) Convenience/Forecourt Store 2 -1.0%
78 Tengelmann Warenhandelsgesellschaft Germany 11,297 11,297 n/a Home Improvement 15 -18.3%
KG
79 Dansk Supermarked A/S Denmark 10,664 10,664 399 Discount 5 4.0%
80 John Lewis Partnership plc U.K. 10,641 10,641 168 Supermarket 2 7.2%
81 Grupo Eroski Spain 10,784e 10,460e -97 Supermarket 3 8.8%
82 Kesko Corporation Finland 11,780 10,429 187 Supermarket 8 5.4%
83 The Daiei, Inc. Japan 10,462 10,295 -127 Hypermarket/Supercenter/Superstore 1 -8.7%
84 BJ’s Wholesale Club, Inc. U.S. 10,187 9,954 132 Cash & Carry/Warehouse Club 1 6.6%
85 Jerónimo Martins, SGPS SA Portugal 10,205 9,932 311 Discount Store 2 17.1%
86 Gome Home Appliance Group China 9,823e 9,823e n/a Electronics Specialty 2 28.7%
87 Metro Inc. Canada 9,525 9,525 302 Supermarket 1 13.3%
88 Home Retail Group plc U.K. 9,571 9,405 333 Other Specialty 3 ne
89 J. Front Retailing Co., Ltd. Japan 10,523 9,389 95 Department Store 1 ne
90 Cencosud S.A. Chile 9,748 9,143 181 Supermarket 5 30.5%
91 Shinsegae Co., Ltd. S. Korea 9,080 9,080 460 Hypermarket/Supercenter/Superstore 2 9.5%
92 GameStop Corp. U.S. 9,078 9,078 376 Other Specialty 18 37.6%
93 Reitangruppen AS Norway 9,160 9,068e n/a Discount 3 15.1%
94 C&A Europe Belgium/Germany 8,882 8,882 n/a Apparel/Footwear Specialty 20 5.1%
95 Shoprite Holdings Ltd. S. Africa 8,913 8,823e 302 Supermarket 16 17.3%
96 Lotte Shopping Co., Ltd. S. Korea 9,113 8,823e 566 Department Store 5 7.9%




Retail 2009 #
97 The Great Atlantic & Pacific Tea U.S. 8,814 8,814 -876 Supermarket 1 -4.1%
Company, Inc.
98 Takashimaya Company, Limited Japan 9,401 8,800 86 Department Store 4 -3.1%
99 Shoppers Drug Mart Corporation Canada 8,790 8,790 515 Drug Store/Pharmacy 1 9.1%
100 X5 Retail Group N.V. Russia 8,717 8,684 165 Discount Store 3 ne
101 Office Depot, Inc. U.S. 12,144 8,661e -599 Other Specialty 33 -1.9%
102 Limited Brands, Inc. U.S. 8,632 8,632 448 Apparel/Footwear Specialty 45 -1.7%
103 Beisia Group Co., Ltd. Japan 8,568e 8,568e n/a Home Improvement 1 7.0%
104 Suning Appliance Co. Ltd. China 8,547 8,547 438 Electronics Specialty 1 45.0%
105 Giant Eagle, Inc. U.S. 8,535e 8,535e n/a Supermarket 1 10.4%
e
106 Menard, Inc. U.S. 8,300 8,300e n/a Home Improvement 1 5.0%
107 Hudson’s Bay Trading Company, L.P. U.S. 8,266e 8,266e n/a Discount Department Store 2 ne
108 Nordstrom, Inc. U.S. 8,627 8,258 441 Department Store 1 3.0%
109 Edion Corporation Japan 8,840 8,221e 113 Electronics Specialty 1 12.6%
110 Kesa Electricals plc U.K. 8,206 8,206 65 Electronics Specialty 11 -7.9%
111 Army and Air Force Exchange Service U.S. 8,641 8,158 428 Hypermarket/Supercenter/Superstore 35 0.4%
(AAFES)
112 QuikTrip Corporation U.S. 8,099e 8,099e 82e Convenience/Forecourt Store 1 5.2%
113 Whole Foods Market, Inc. U.S. 8,032 8,032 147 Supermarket 3 15.8%
114 Bed Bath and Beyond Inc. U.S. 7,829 7,829 600 Other Specialty 4 8.7%
115 Esselunga S.p.A. Italy 7,746e 7,746e 262 Hypermarket/Supercenter/Superstore 1 7.5%
116 Oxylane Groupe France 7,587 7,587 n/a Other Specialty 14 9.7%
117 Fa. Anton Schlecker Germany 7,478e 7,478e n/a Drug Store/Pharmacy 13 -0.1%
118 Family Dollar Stores, Inc. U.S. 7,401 7,401 291 Discount Store 1 7.0%
119 Liberty Media Corp./QVC, Inc. U.S. 10,158 7,374 6,501 Non-Store 7 5.3%
120 Yodobashi Camera Co., Ltd. Japan 7,369 7,369 n/a Electronics Specialty 1 3.3%
121 Etn. Fr. Colruyt N.V. Belgium 9,547 7,369 466 Supermarket 4 8.2%
122 Winn-Dixie Stores, Inc. U.S. 7,248 7,248 29 Supermarket 1 -6.1%
123 Ross Stores, Inc. U.S. 7,184 7,184 443 Apparel/Footwear Specialty 1 11.1%
124 Fast Retailing Co., Ltd. Japan 7,118 7,118 520 Apparel/Footwear Specialty 19 15.0%
125 Dairy Farm International Hong Kong SAR 7,029 7,029 363 Supermarket 10 12.2%
Holdings Limited
126 K’s Holdings Corporation Japan 6,992 6,992 172 Electronics Specialty 1 13.6%
127 Canadian Tire Corporation, Limited Canada 7,647 6,955 295 Other Specialty 1 3.8%
128 FDB (Coop Danmark A/S) Denmark 6,935 6,904 32 Supermarket 1 ne
129 Globus Holding GmbH & Co. KG Germany 6,851e 6,851e n/a Hypermarket/Supercenter/Superstore 3 6.0%
130 Pick n Pay Stores Limited S. Africa 6,878 6,810e 154 Supermarket 6 11.4%
131 Casas Bahia Comercial Ltda. Brazil 6,608 6,608 n/a Electronics Specialty 1 11.1%
132 Organización Soriana, S.A.B. Mexico 6,586 6,586 213 Hypermarket/Supercenter/Superstore 1 15.3%
de C.V.
133 Apple Inc./Apple Stores U.S. 36,537 6,574 5,704 Electronics Specialty 9 40.9%
134 Hy-Vee, Inc. U.S. 6,400 6,400 n/a Supermarket 1 6.8%
135 The Pantry, Inc. U.S. 6,390 6,390 59 Convenience/Forecourt Store 1 12.8%
136 SHV Holdings N.V./Makro Netherlands 16,626 6,373 860 Cash & Carry/Warehouse Club 6 7.7%
137 dm-drogerie markt GmbH Germany 6,351e 6,351e n/a Drug Store/Pharmacy 11 10.8%
+ Co. KG
138 Massmart Holdings Limited S. Africa 6,274 6,274 160 Cash & Carry/Warehouse Club 13 12.3%
139 Sonae, SGPS, S.A. Portugal 7,901 6,096 103 Hypermarket/Supercenter/Superstore 2 4.2%
140 Bic Camera Inc. Japan 6,122 6,060 54 Electronics Specialty 1 8.1%
141 AutoZone, Inc. U.S. 6,817 6,044e 657 Other Specialty 3 4.3%
142 Tokyu Corporation Japan 13,261 6,015 178 Department Store 1 7.8%
143 Defense Commissary Agency (DeCA) U.S. 5,981 5,981 n/a Supermarket 15 2.8%




Retail 2009 #
144 Dillard’s, Inc. U.S. 6,227 5,890 69 Department Store 1 -4.8%
145 Dalian Dashang Group China n/a 5,864e n/a Department Store 1 17.2%
146 Dirk Rossmann GmbH Germany 5,740 5,740 n/a Drug Store/Pharmacy 5 19.0%
147 Barnes & Noble, Inc. U.S. 5,811 5,730e 37 Other Specialty 1 4.0%
148 Katz Group Inc. Canada 5,669e 5,669e n/a Drug Store/Pharmacy 2 7.8%
149 Groupe Galeries Lafayette SA France 7,069 5,656e 264 Department Store 4 0.5%
150 S.A.C.I. Falabella Chile 6,450 5,644e 417 Home Improvement 4 15.1%
151 RaceTrac Petroleum Inc. U.S. 5,463 5,463 24 Convenience/Forecourt Store 1 6.9%
152 Open Joint Stock Company “Magnit” Russia 5,354 5,346 275 Convenience/Forecourt Store 1 45.7%
153 PetSmart, Inc. U.S. 5,336 5,336 198 Other Specialty 2 9.7%
154 Dollar Tree, Inc. U.S. 5,231 5,231 321 Discount Store 1 10.8%
155 Wegmans Food Markets, Inc. U.S. 5,150e 5,150e n/a Supermarket 1 7.4%
156 Don Quijote Co., Ltd. Japan 5,329 5,139 115 Discount Store 2 15.1%
157 Praktiker Bau- und Heimwerkermärkte Germany 5,109 5,109 -13 Home Improvement 10 ne
Holding AG
158 Next plc U.K. 5,382 5,074 575 Apparel/Footwear Specialty 32 3.8%
159 Bauhaus GmbH & Co. KG Germany 4,947e 4,947e n/a Home Improvement 14 9.4%
160 Save Mart Supermarkets U.S. 4,900e 4,900e n/a Supermarket 1 15.3%
161 Life Corporation Japan 5,021 4,889 44 Supermarket 1 3.8%
162 Foot Locker, Inc. U.S. 4,854 4,854 48 Apparel/Footwear Specialty 28 -1.9%
163 O’Reilly Automotive, Inc. U.S. 4,847 4,847 307 Other Specialty 1 23.0%
164 H2O Retailing Corporation Japan 5,071 4,812 32 Department Store 1 ne
165 Celesio AG Germany 29,981 4,800 3 Drug Store/Pharmacy 8 3.8%
166 Big Lots, Inc. U.S. 4,727 4,727 200 Discount Store 1 1.6%
167 Kojima Co., Ltd. Japan 4,724 4,703 34 Electronics Specialty 1 -2.3%
168 Casey’s General Stores, Inc. U.S. 4,637 4,637 117 Convenience/Forecourt Store 1 10.5%
169 OfficeMax Inc. U.S. 7,212 4,629e 1 Other Specialty 6 -3.3%
170 China Resources Enterprise, Limited Hong Kong SAR 8,273 4,626 488 Supermarket 2 21.0%
171 Shimamura Co., Ltd. Japan 4,602 4,602 233 Apparel/Footwear Specialty 2 5.7%
172 NorgesGruppen Norway 8,517 4,589 188 Supermarket 1 15.6%
173 Wawa Inc. U.S. 5,890e 4,550e n/a Convenience/Forecourt Store 1 18.2%
174 KF Gruppen Sweden 4,899 4,522 29 Supermarket 1 ne
175 Norma Lebensmittelfilialbetrieb Germany 4,514e 4,514e n/a Discount Store 4 4.1%
GmbH & Co. KG
176 DCM Japan Holdings Co., Ltd. Japan 4,528 4,481 17 Home Improvement 1 ne
177 Bass Pro Shops Inc. U.S. 4,440e 4,440e n/a Other Specialty 2 14.1%
178 Dick’s Sporting Goods, Inc. U.S. 4,413 4,413 135 Other Specialty 1 15.9%
179 Luxottica Group S.p.A. Italy 7,105 4,378 456 Other Specialty 25 6.0%
180 Douglas Holding AG Germany 4,336 4,332 85 Other Specialty 22 6.9%
181 Coop Norge Norway 4,395 4,330e 14 Supermarket 1 ne
182 WinCo Foods LLC U.S. 4,300e 4,300e n/a Supermarket 1 13.3%
183 RadioShack Corporation U.S. 4,276 4,276 205 Electronics Specialty 3 -2.5%
184 Lojas Americanas S.A. Brazil 4,236 4,236 81 Discount Department Store 1 29.6%
185 The Sherwin-Williams Company U.S. 7,094 4,209 436 Home Improvement 6 1.1%
186 Albertsons, LLC U.S. 4,200e 4,200e n/a Supermarket 1 -36.3%
187 East Japan Railway Company Japan 27,745 4,173 1,319 Convenience/Forecourt Store 1 0.9%
188 Apoteket AB Sweden 5,671 4,158 70 Drugstore/Pharmacy 1 2.4%
189 Maxeda Retail Group B.V. Netherlands 4,331 4,158e n/a Home Improvement 14 -4.6%
190 Deichmann SE Germany 4,044e 4,044e n/a Apparel/Footwear Specialty 19 8.8%
191 Blockbuster Inc. U.S. 4,062 4,042 -558 Other Specialty 19 -7.5%




Retail 2009 #
192 Joshin Denki Co., Ltd. Japan 4,157 4,039e 50 Electronics Specialty 1 8.0%
193 Groupe Vivarte France 4,020 4,020 n/a Apparel/Footwear Specialty 66 8.8%
194 Controladora Comercial Mexicana Mexico 4,079 4,012 27 Hypermarket/Supercenter/Superstore 1 8.0%
S.A.B. de C.V.
195 MatsumotoKiyoshi Holdings Japan 4,237 3,982e 81 Drug Store/Pharmacy 1 4.5%
Co., Ltd.
196 FEMSA Comercio, S.A. de C.V. Mexico 3,979 3,979 n/a Convenience/Forecourt Store 2 19.1%
197 Blokker Holding N.V. Netherlands 3,927e 3,927e 222 Other Specialty 11 6.0%
198 Michaels Stores, Inc. U.S. 3,888 3,888 107 Other Specialty 2 2.8%
199 Heiwado Co., Ltd. Japan 4,131 3,869 72 Hypermarket/Supercenter/Superstore 2 0.4%
200 Ruddick Corporation/Harris Teeter U.S. 4,078 3,827 87 Supermarket 1 8.3%
201 Izumiya Co., Ltd. Japan 3,840 3,818 -75 Hypermarket/Supercenter/Superstore 1 0.6%
202 President Chain Store Corp. Taiwan 4,494 3,797 134 Convenience/Forecourt Store 4 8.9%
203 HORNBACH-Baumarkt-AG Group Germany 3,786 3,784 96 Home Improvement 9 5.1%
204 Advance Auto Parts, Inc. U.S. 5,413 3,705e 270 Other Specialty 2 3.7%
205 Sheetz, Inc. U.S. 3,700e 3,700e n/a Convenience/Forecourt Store 1 5.7%
206 Migros Ticaret A.Ş. (formerly Turkey 3,691 3,691 71 Supermarket 5 20.5%
Migros Türk T.A.Ş.)
207 Stater Bros. Holdings Inc. U.S. 3,766 3,669 35 Supermarket 1 0.2%
208 Poslovni sistem Mercator, d.d. Slovenia 3,686 3,656 29 Supermarket 7 10.8%
209 Marui Group Co. Ltd. Japan 4,520 3,648 55 Department Store 2 -4.9%
210 Neiman Marcus, Inc. U.S. 3,643 3,643 -668 Department Store 1 1.1%
211 The SPAR Group Limited S. Africa 3,627 3,627 84 Supermarket 3 21.7%
212 Roundy’s Supermarkets, Inc. U.S. 3,800e 3,610e n/a Supermarket 1 3.7%
213 Jim Pattison Group Canada 6,250 3,609e n/a Supermarket 1 2.4%
214 Iceland Foods Group Limited U.K. 3,601 3,601 216 Supermarket 2 9.0%
215 Associated British Foods plc/Primark U.K. 14,360 3,590 594 Apparel/Footwear Specialty 6 21.9%
216 Valor Co., Ltd. Japan 3,718 3,579e 43 Supermarket 1 10.6%
217 The Maruetsu, Inc. Japan 3,542 3,567 75 Supermarket 1 -0.6%
218 Burlington Coat Factory U.S. 3,550e 3,550e n/a Department Store 2 2.3%
Investments Holdings, Inc.
219 Grupo Comercial Chedraui, Mexico 3,559 3,522 104 Hypermarket/Supercenter/Superstore 2 20.8%
S.A.B. de C.V.
220 BİM (Birleşik Mağazalar A.Ş.) Turkey 3,440 3,440 138 Discount Store 2 28.8%
221 Nonggongshang Supermarket Group China 3,438e 3,438e n/a Hypermarket/Supercenter/Superstore 1 17.6%
Co. Ltd.
222 The Golub Corporation / U.S. 3,400e 3,400e n/a Supermarket 1 5.1%
Price Chopper Supermarkets
223 Compagnie Financière Switzerland 7,318 3,372 848 Other Specialty 51 9.6%
Richemont SA
224 Dunnes Stores Ltd. Rep. of Ireland 3,365e 3,365e n/a Department Store 3 2.5%
225 Belk, Inc. U.S. 3,346 3,346 67 Department Store 1 6.5%
226 Gruppo PAM S.p.A. Italy 3,356e 3,303e n/a Supermarket 1 1.9%
227 Signet Jewelers Limited Bermuda 3,291 3,291 164 Other Specialty 3 2.1%
228 XXXLutz Group Austria 3,277e 3,277e n/a Other Specialty 5 10.9%
229 Finiper S.p.a. Italy 3,307e 3,274e n/a Hypermarket/Supercenter/Superstore 1 0.8%
230 Lagardère Services SA France 4,724 3,226 84 Other Specialty 30 0.5%
231 HMV Group plc U.K. 3,230 3,217 79 Other Specialty 7 1.3%
232 Tractor Supply Company U.S. 3,207 3,207 115 Other Specialty 1 13.0%
233 CP ALL Public Company Limited Thailand 3,457 3,203 147 Convenience/Forecourt Store 1 12.9%
234 Demoulas Super Markets, Inc. U.S. 3,200e 3,200e n/a Supermarket 1 10.4%
235 Kintetsu Department Store Co., Ltd. Japan 3,308 3,176 -100 Department Store 1 -1.6%
236 Müller Ltd. & Co. KG Germany 3,170e 3,170e n/a Drug Store/Pharmacy 7 8.3%




Retail 2009 #
237 Liquor Control Board of Ontario Canada 3,950 3,160e 1,295 Other Specialty 1 4.1%
238 Coach, Inc. U.S. 3,608 3,156 735 Other Specialty 6 27.5%
239 Ingles Markets, Inc. U.S. 3,251 3,144 29 Supermarket 1 9.1%
240 MAXIMA GRUPĖ, UAB Lithuania 3,131 3,131 n/a Supermarket 4 16.9%
241 El Puerto de Liverpool, SAB de CV Mexico 3,236 3,130 281 Department Store 1 9.6%
242 Sugi Holdings Co., Ltd. Japan 3,144 3,122 55 Drug Store/Pharmacy 1 22.6%
243 RONA Inc. Canada 4,117 3,116 126 Home Improvement 1 6.5%
244 Axfood AB Sweden 4,263 3,114 104 Supermarket 1 -0.6%
245 Metcash Trading Africa (Pty) Ltd. S. Africa 3,105e 3,105e n/a Cash & Carry/Warehouse Club 5 -14.2%
246 Williams-Sonoma, Inc. U.S. 3,103 3,103 77 Other Specialty 3 -0.2%
247 Raley’s Inc. U.S. 3,100e 3,100e n/a Supermarket 1 -1.6%
248 Woolworths Holdings Limited S. Africa 3,129 3,093 168 Department Store 18 13.9%
249 Systembolaget AB Sweden 3,076 3,076 45 Other Specialty 1 5.7%
250 Fuji Co. Ltd. Japan 3,075 3,075 10 Hypermarket/Supercenter/Superstore 1 -1.5%


Top 10 not immune to economic gloom Top 10 profitability also lagged the group as a whole: of the eight
The world’s 10 largest retailers saw their share of total Top 250 sales companies that disclosed their bottom-lines, they generated a
slip in 2009, and their composite sales growth was stagnant at just composite net profit margin of 2.6 percent, compared with
0.2 percent. Nevertheless, these retailers still garnered a whopping 3.1 percent for the Top 250 as a whole.
30 percent of the Top 250’s combined sales (down slightly from
30.2 percent in 2008). The makeup of the Top 10 remained the same in 2009 as in 2007
and 2008, with Wal-Mart as the undisputed leader. The movement
Sales declined for four Top 10 retailers – Carrefour, Metro, Costco of Costco and Aldi (up one place each), displacing The Home Depot
and The Home Depot; three others had sales growth of 1 percent or (which dropped two places to finish ninth), reflect the only changes
less. Tesco and hard discounters Schwarz and Aldi were the only within the Top 10.
Top 10 companies whose sales growth outpaced the Top 250’s
1.3 percent composite growth rate. Although sales were flat and profitability lagged, the retail leaders
were more productive than their smaller competitors, with return on
assets of 5.3 percent and an asset turnover of 2 times.
Economic concentration of top 10 retailers, 2009

Top
250 Country 2009 retail 2009 retail 2009 net 2009 return 2009 asset
rank Name of company of origin sales (US$mil) sales growth profit margin on assets turnover
1 Wal-Mart U.S. 405,046 0.9% 3.6% 8.7% 2.4
2 Carrefour France 119,887 -1.2% 0.5% 0.8% 1.7
3 Metro Germany 90,850 -3.2% 0.8% 1.5% 1.9
4 Tesco U.K. 90,435 4.8% 4.1% 5.1% 1.2
5 Schwarz Germany 77,221 1.4% n/a n/a n/a
6 Kroger U.S. 76,733 1.0% 0.1% 0.2% 3.3
7 Costco U.S. 69,889 -1.5% 1.5% 4.9% 3.2
8 Aldi Germany 67,709 3.8% n/a n/a n/a
9 Home Depot U.S. 66,176 -7.2% 4.0% 6.5% 1.6
10 Target U.S. 63,435 0.9% 3.8% 5.6% 1.5
Top 10* $1,127,381 0.2% 2.6% 5.3% 2.0
Top 250* $3,763,535 1.3% 3.1% 4.9% 1.6
Top 10 share of total 30.0%

*Sales-weighted, currency-adjusted composite growth rate
Source: Published company data and Planet Retail


Top 250 global retailers alphabetical listing

Advance Auto Parts, Inc. 204 Dillard’s, Inc. 144 Joshin Denki Co., Ltd. 192 Publix Super Markets, Inc. 33
Aeon Co., Ltd. 18 Dirk Rossmann GmbH 146 Katz Group Inc. 148 QuikTrip Corporation 112
Albertsons, LLC 186 dm-drogerie markt GmbH + Co. 137 Kesa Electricals plc 110 RaceTrac Petroleum Inc. 151
Aldi Einkauf GmbH & Co. oHG 8 KG Kesko Corporation 82 RadioShack Corporation 183
Alimentation Couche-Tard Inc. 48 Dollar General Corp. 76 KF Gruppen 174 Raley’s Inc. 247
Alliance Boots GmbH 74 Dollar Tree, Inc. 154 Kingfisher plc 52 Reitangruppen AS 93
Amazon.com, Inc. 35 Don Quijote Co., Ltd. 156 Kintetsu Department Store Co., Ltd. 235 Rewe-Zentral AG 12
Apoteket AB 188 Douglas Holding AG 180 Kohl’s Corporation 46 Rite Aid Corporation 31
Apple Inc./Apple Stores 133 DSG International plc 64 Kojima Co., Ltd. 167 RONA Inc. 243
Army and Air Force Exchange 111 Dunnes Stores Ltd. 224 Koninklijke Ahold N.V 25 Ross Stores, Inc. 123
Service (AAFES) East Japan Railway Company 187 Kroger Co. 6 Roundy’s Supermarkets, Inc. 212
AS Watson & Company, Ltd. 55 Edeka Zentrale AG & Co. KG 14 K’s Holdings Corporation 126 Ruddick Corporation/Harris Teeter 200
Associated British Foods plc/ 215 Edion Corporation 109 Lagardère Services SA 230 S Group 68
Primark El Corte Inglés, S.A. 43 Liberty Media Corp./QVC, Inc. 119 S.A.C.I. Falabella 150
AutoZone, Inc. 141 El Puerto de Liverpool, SAB de CV 241 Life Corporation 161 Safeway Inc. 24
Axfood AB 244 Empire Company Limited 58 Limited Brands, Inc. 102 Save Mart Supermarkets 160
Bailian (Brilliance) Group 70 Esselunga S.p.A. 115 Liquor Control Board of Ontario 237 Schwarz Unternehmens 5
Barnes & Noble, Inc. 147 Etn. Fr. Colruyt N.V. 121 Loblaw Companies Limited 40 Treuhand KG
Bass Pro Shops Inc. 177 Fa. Anton Schlecker 117 Lojas Americanas S.A. 184 Sears Holdings Corp. 21
Bauhaus GmbH & Co. KG 159 Family Dollar Stores, Inc. 118 Lotte Shopping Co., Ltd. 96 Seven & i Holdings Co., Ltd. 16
Bed Bath and Beyond Inc. 114 Fast Retailing Co., Ltd. 124 Louis Delhaize S.A. 51 Sheetz, Inc. 205
Beisia Group Co., Ltd. 103 FDB (Coop Danmark A/S) 128 Lowe’s Companies, Inc. 19 Sherwin-Williams Company 185
Belk, Inc. 225 FEMSA Comercio, S.A. de C.V. 196 Luxottica Group S.p.A. 179 Shimamura Co., Ltd. 171
Best Buy Co., Inc. 17 Finiper S.p.a. 229 LVMH Moët Hennessy- 61 Shinsegae Co., Ltd. 91
Bic Camera Inc. 140 Foot Locker, Inc. 162 Louis Vuitton Shoppers Drug Mart Corporation 99
Big Lots, Inc. 166 Fuji Co. Ltd. 250 Macy’s, Inc. 36 Shoprite Holdings Ltd. 95
BİM (Birleşik Mağazalar A.Ş.) 220 GameStop Corp. 92 Marks & Spencer Group Plc 53 SHV Holdings N.V. / Makro 136
BJ’s Wholesale Club, Inc. 84 Gap, Inc. 59 Maruetsu, Inc. 217 Signet Jewelers Limited 227
Blockbuster Inc. 191 Giant Eagle, Inc. 105 Marui Group Co. Ltd. 209 Sonae, SGPS, S.A. 139
Blokker Holding N.V. 197 Globus Holding GmbH & Co. KG 129 Massmart Holdings Limited 138 SPAR Group Limited 211
Burlington Coat Factory 218 Golub Corporation/Price 222 MatsumotoKiyoshi 195 SPAR Österreichische 72
Investments Holdings, Inc. Chopper Supermarkets Holdings Co., Ltd. Warenhandels-AG
C&A Europe 94 Gome Home Appliance Group 86 Maxeda Retail Group B.V. 189 Staples, Inc. 57
Canadian Tire Corporation, 127 Great Atlantic & Pacific 97 MAXIMA GRUPĖ, UAB 240 Stater Bros. Holdings Inc. 207
Limited Tea Company, Inc. Meijer, Inc. 56 Sugi Holdings Co., Ltd. 242
Carrefour S.A. 2 Groupe Adeo SA 60 Menard, Inc. 106 Suning Appliance Co. Ltd. 104
Casas Bahia Comercial Ltda. 131 Groupe Auchan SA 15 Mercadona, S.A. 39 SuperValu Inc. 29
Casey’s General Stores, Inc. 168 Groupe Galeries Lafayette SA 149 Metcash Trading Africa (Pty) Ltd. 245 Systembolaget AB 249
Casino Guichard-Perrachon S.A. 26 Groupe Vivarte 193 Metro AG 3 Système U, Centrale Nationale 42
Celesio AG 165 Grupo Comercial Chedraui, 219 Metro Inc. 87 Takashimaya Company, Limited 98
Cencosud S.A. 90 S.A.B. de C.V. Michaels Stores, Inc. 198 Target Corp. 10
Centres Distributeurs E. Leclerc 22 Grupo Eroski 81 Migros Ticaret A.Ş. 206 Tengelmann 78
China Resources Enterprise, 170 Grupo Pão de Açúcar 75 (formerly Migros Türk T.A.Ş.) Warenhandelsgesellschaft KG
Limited Gruppo PAM S.p.A. 226 Migros-Genossenschafts Bund 41 Tesco plc 4
Coach, Inc. 238 H & M Hennes & Mauritz AB 65 Müller Ltd. & Co. KG 236 TJX Companies, Inc. 38
Compagnie Financière 223 H.E. Butt Grocery Company 54 Neiman Marcus, Inc. 210 Tokyu Corporation 142
Richemont SA H2O Retailing Corporation 164 Next plc 158 Toys “R” Us, Inc. 63
Conad Consorzio Nazionale, 67 Heiwado Co., Ltd. 199
Dettaglianti Soc. Coop. a.r.l. Nonggongshang Supermarket 221 Tractor Supply Company 232
HMV Group plc 231 Group Co. Ltd. UNY Co., Ltd. 77
Controladora Comercial 194
Mexicana S.A.B. de C.V. Home Depot, Inc. 9 Nordstrom, Inc. 108 Valor Co., Ltd. 216
Coop Group 49 Home Retail Group plc 88 NorgesGruppen 172 Walgreen Co. 11
Coop Italia 47 HORNBACH-Baumarkt-AG Group 203 Norma Lebensmittelfilialbetrieb 175 Wal-Mart Stores, Inc. 1
Hudson’s Bay Trading Company, 107 GmbH & Co. KG Wawa Inc. 173
Coop Norge 181
L.P. Office Depot, Inc. 101 Wegmans Food Markets, Inc. 155
Co-operative Group Ltd. 66
Hy-Vee, Inc. 134 OfficeMax Inc. 169 Wesfarmers Limited 23
Costco Wholesale Corp. 7
ICA AB 71 Open Joint Stock Company 152 Whole Foods Market, Inc. 113
CP ALL Public Company Limited 233 “Magnit”
Iceland Foods Group Limited 214 Williams-Sonoma, Inc. 246
CVS Caremark Corp. 13 O’Reilly Automotive, Inc. 163
IKEA Group (INGKA Holding B.V.) 30 WinCo Foods LLC 182
Daiei, Inc. 83 Organización Soriana, 132
Inditex S.A. 50 Winn-Dixie Stores, Inc. 122
Dairy Farm International 125 S.A.B. de C.V.
Holdings Limited Ingles Markets, Inc. 239 WM Morrison Supermarkets Plc 34
Isetan Mitsukoshi Holdings Ltd. 62 Otto (GmbH & Co KG) 69
Dalian Dashang Group 145 Oxylane Groupe 116 Woolworths Holdings Limited 248
Dansk Supermarked A/S 79 ITM Développement International 27 Woolworths Limited 20
(Intermarché ) Pantry, Inc. 135
DCM Japan Holdings Co., Ltd. 176 PetSmart, Inc. 153 X5 Retail Group N.V. 100
Izumiya Co., Ltd. 201
Defense Commissary Agency 143 Pick n Pay Stores Limited 130 XXXLutz Group 228
(DeCA) J Sainsbury plc 28
Poslovni sistem Mercator, d.d. 208 Yamada Denki Co., Ltd. 37
Deichmann SE 190 J. C. Penney Company, Inc. 45
PPR S.A. 44 Yodobashi Camera Co., Ltd. 120
Delhaize Group 32 J. Front Retailing Co., Ltd. 89
Jerónimo Martins, SGPS SA 85 Praktiker Bau- und 157
Dell Inc. 73 Heimwerkermärkte Holding AG
Demoulas Super Markets, Inc. 234 Jim Pattison Group 213
John Lewis Partnership plc 80 President Chain Store Corp. 202
Dick’s Sporting Goods, Inc. 178


Global Powers of Retailing geographical analysis

For purposes of geographical analysis, companies are assigned to a region based on their
headquarters location, which may not always coincide with where they derive the
majority of their sales. Although many companies derive sales from outside their region,
100 percent of each company’s sales are accounted for within that company’s region.

Europe’s share of Top 250 falls with euro Share of Top 250 retailers by region/country, 2009
As a region, European retailers demonstrated superior sales growth 4.0% 3.2%
in 2009. Nevertheless, the number of European companies in the
Top 250 slipped from 96 in 2008 to 92 in 2009, and they accounted 12.8%
for a smaller share of total Top 250 retail sales. With the exception of
France, where composite sales declined 1.9 percent, this outcome is
5.6%
primarily due to the U.S. dollar’s stronger average exchange rate in
2009 relative to the euro and pound. The U.K. companies enjoyed 33.6% 5.2%
relatively strong composite growth – at 7.1 percent, it was the highest
of all regions and countries analyzed – and also generated the highest 7.6%
level of net profitability (3.5 percent).
6.0%

The Asia/Pacific region gained as a share of the Top 250 in 2009.
4.0% 18.0%
While China and India experienced a slowdown, they were able to
avoid the recession that engulfed the world’s other major economies.
Africa/Middle East U.K.
The region’s statistical gains had mostly to do with Japan, and the
Japan Other Europe
continued resurgence of Japanese retailers was strictly the result of a
Other Asia/Paciﬁc Latin America
stronger yen rather than real sales growth. As a group, Japanese
France U.S.
retailers experienced declining sales in 2009 and a composite net
Germany Canada
profit margin of just 1.3 percent.

The performance of the Asia/Pacific region was negatively impacted
Share of Top 250 sales by region/country, 2009
by the Japanese companies. Excluding Japan, composite sales grew
2.4% 1.0%
4.8 percent for the other Asia/Pacific retailers, who posted a
composite net profit margin of 4.1 percent. 7.9%
4.7%
U.S. retailers’ share of total Top 250 sales ticked up slightly to
42.1 percent on the stronger dollar. However, sales were essentially 9.9%
stagnant owing to the persistent climate of consumer uncertainty.
Because the United States accounts for such a large portion of the 42.1%

Top 250, the country’s anemic 0.5 percent sales growth acted as a 11.6%
severe drag on the group as a whole. Despite lackluster sales,
profitability for the U.S. retailers was above par, with a composite net
6.9%
profit margin of 3.4 percent.
11.9%
Retailers in the Africa/Middle East region continued to post strong 1.6%
growth and solid profitability. Six of the eight Top 250 companies Africa/Middle East U.K.
from this region enjoyed double-digit gains. Latin America, the Japan Other Europe
fastest-growing region in 2008, experienced significantly weaker Other Asia/Paciﬁc Latin America
growth in 2009. The pace of growth slowed for nine of the 10 Latin France U.S.
American companies. Only Pão de Açúcar saw growth accelerate, the Germany Canada
result of recent acquisitions.


Asset turnover and ROA by region/country European retailers most global
2009 composite 2009 composite
For the first time since DTTL began tracking the level of globalization
asset turnover return on assets among the Top 250 in 2005, foreign operations as a share of Top
Top 250 1.6 4.9% 250 retail sales declined. While the change was small – dropping
Africa/Middle East 3.0 9.0% from 22.9 percent in 2008 to 22.2 percent in 2009 –
Asia/Pacific 1.2 2.6% it may signal that finding the right avenues for global expansion is
Japan 1.1 1.5% still a tricky business. (For more about this issue, see Lessons of retail
Europe 1.4 4.2% globalization beginning on page 9.)
France 1.2 3.2%
Germany 2.0 1.5% European retailers are, by far, the most international, with more
U.K. 1.4 4.8% than one-third of their 2009 sales from operations outside their
Latin America 1.1 3.7% home country. For Top 250 retailers based in Germany and France,
North America 1.9 6.4% foreign operations generated more than 40 percent of overall sales.
U.S. 1.9 6.4%
This helps to explain the significantly larger average size of the
German and French retailers compared with their counterparts
Source: Published company data and Planet Retail elsewhere around the globe. Only about 20 percent of the European
retailers were single-country operators in 2009, compared with
Japanese and German retailers are the most asset intensive as more than 40 percent for the Top 250 overall. All of the French
measured by their low 1.5 percent return on assets. But the German retailers and all but one of the German retailers operate
companies used their assets much more efficiently to generate sales, internationally.
with an asset turnover ratio of 2 times. Retailers in the Africa/Middle
East and North America regions had the highest return on assets, as
well as above average asset turnover.

Sales growth and profitability by region/country (%)

20
16.2
15 13.2
10.4
10 8.8
7.1 7.1
6.1 5.5 6.2 6.2
5.0 4.7
5 3.1 3.7 3.1 3.5 3.3 3.4 3.4
3.0 2.2 3.0 2.8 2.7
1.3 2.3
1.3 0.8 0.5 0.4
0
-0.5
-1.9
-5 -3.4
U.S.
U.K.

Latin America
Asia/Pacific

North America
Japan
Top 250

France
Europe

Germany
Africa/Middle East

2004-2009 composite retail sales CAGR* 2009 composite retail sales growth 2009 composite net profit margin

Results reflect Top 250 retailers headquartered in each region/country

*Compound Annual Growth Rate



In contrast, 55 percent of North American retailers (52 of 94) in It should be noted that the average number of countries with retail
the Top 250 were single-country operators in 2009, and foreign operations in 2009 is not strictly comparable with that reported in the
operations accounted for only 13.3 percent of overall sales for the Global Powers of Retailing in previous years. In an effort to better track
North American region. That is starting to change, however, the globalization of retailing, the 2009 numbers include the location of
especially among fashion specialty retailers like The Gap, Limited franchised, licensed and joint venture operations in addition to
Brands and Foot Locker, as these companies establish partnerships corporate-owned channels of distribution. Where information was
around the globe to operate franchised or licensed locations. available, the number of countries reflects non-store sales channels like
consumer-oriented e-commerce sites and catalogs.
Nearly 60 percent of Top 250 retailers in the Asia/Pacific region
had yet to expand beyond their home country in 2009. Japanese As a result of this change, there has been an increase in the average
retailers generated the smallest share of sales from foreign number of countries with retail operations across all five regions.
operations: More than two-thirds did business only in Japan. For the Top 250 as a whole, retailers operated in an average of
Although retailers in Africa and the Middle East have expanded 7.7 countries in 2009. (This figure does not include Dell, which is truly
well outside their home countries, the vast majority of their sales global in scope, doing business with consumers in 177 countries.)
still came from domestic operations in 2009.
European retailers averaged 13 countries, the most of any region, with
Latin American retailers had the smallest global presence in terms of France leading the way at 29 countries. This is due, in part, to the large
the average number of countries in which they operated (1.9), and and growing number of franchised and licensed stores being opened
six of the 10 Top 250 companies from this region had only domestic around the world by top European fashion and luxury goods retailers
operations. However, foreign operations accounted for 12 percent like LVMH, Richemont, H&M, Inditex, Groupe Vivarte, PPR and Next.
of the region’s combined sales, primarily the result of a number of
regional acquisitions made by Chilean supermarket operator
Cencosud.

Region/country profiles

Average % retail sales from
2009 retail sales foreign operations Average # % single-country
# companies (U.S. $mil) 2009 countries 2009 operators 2009
Top 250* 250 $15,054 22.2% 7.7 41.2%
Africa/Middle East 8 $4,858 8.7% 8.5 0.0%
Asia/Pacific 46 $10,267 10.5% 3.5 58.7%
Japan 32 $9,254 6.9% 2.9 68.8%
Europe 92 $16,507 36.5% 13.0 19.6%
France 13 $28,620 41.3% 29.1 0.0%
Germany 19 $23,046 41.6% 13.7 5.3%
U.K. 15 $17,282 21.9% 10.7 20.0%
Latin America 10 $5,868 12.0% 1.9 60.0%
North America* 94 $17,820 13.3% 5.1 55.3%
U.S.* 84 $18,851 13.3% 5.5 52.4%

Results reflect Top 250 retailers headquartered in each region/country
* Average number of countries excludes Dell (U.S.), whose near-global coverage would skew the average


Top 10 retailers by region Top 10 retailers by region, 2009
Europe’s top 10 retailers are dominated by France and Germany.
Top Retail
All of the changes to this region’s top 10 list in 2009 took place in Region 250 sales Country
the bottom half. Edeka rose two places to take over the No.7 spot, rank rank Company (US$ mill) of origin

surpassing Auchan and Leclerc. Edeka’s robust 9.9 percent sales
Europe
increase was mainly due to the integration of the 2,339 Plus 1 2 Carrefour $119,887 France
discount stores it acquired from Tengelmann in January 2009. 2 3 Metro $90,850 Germany
Ahold replaced ITM (Intermarché) in 10th place. 3 4 Tesco $90,435 U.K.
4 5 Schwarz $77,221 Germany
5 8 Aldi $67,709 Germany
In North America, the names remained the same, but the collapse
6 12 Rewe $61,771 Germany
of the U.S. housing market shuffled the deck at bit. The Home
7 14 Edeka Zentrale $55,339 Germany
Depot and Lowe’s both fell in the ranking as home improvement 8 15 Auchan $54,057 France
sales continued their downward slide in 2009. As a result, Costco 9 22 E. Leclerc $41,002 France
climbed to third place and Best Buy rose to eighth. 10 25 Ahold $38,945 Netherlands
North America
1 1 Wal-Mart $405,046 U.S.
For the first time, a Chinese retailer, Bailian Group, made the list of
2 6 Kroger $76,733 U.S.
the top 10 Asia/Pacific retailers, entering the list at number eight.
3 7 Costco $69,889 U.S.
The company was created in 2003 through a merger of the parent 4 9 Home Depot $66,176 U.S.
companies of several of China’s largest retailers, and it now operates 5 10 Target $63,435 U.S.
multiple formats throughout China. Shinsegae fell out of the 6 11 Walgreens $63,335 U.S.
region’s top 10, a victim of the weak South Korean won. 7 13 CVS Caremark $55,355 U.S.
8 17 Best Buy $49,694 U.S.
9 19 Lowe’s $47,220 U.S.
Trading places describes the 10 Latin American retailers on the
10 21 Sears Holdings $44,043 U.S.
Top 250 list in 2009. Several companies changed places, including Asia/Pacific
the top two—Brazil’s Grupo Pão de Açúcar overtook Chile’s 1 16 Seven & I Holdings $52,508 Japan
Cencosud—as well as the next two—Casas Bahia surpassed Soriana. 2 18 AEON $49,021 Japan
In 2010, Pão de Açúcar and its Brazilian rival Casas Bahia agreed to 3 20 Woolworths $44,410 Australia
4 23 Wesfarmers $40,288 Australia
merge, setting the stage for another shake-up. In addition, Lojas
5 37 Yamada Denki $21,734 Japan
Americanas, the other Brazilian Top 250 retailer, jumped two places
6 55 AS Watson $14,977 Hong Kong SAR
ahead of Mexico’s Comercial Mexicana and FEMSA Comercio, 7 62 Isetan Mitsukoshi Holdings $13,575 Japan
propelled by 11 percent same store sales growth in 2009. Top 250 8 70 Bailian $12,257 China
newcomer Comercial Chedraui, another Mexican retailer, displaced 9 77 UNY $11,785 Japan
Distribución y Servicio (D&S), which was acquired by Wal-Mart. 10 83 Daiei $10,295 Japan
Latin America
1 75 Grupo Pão de Açúcar $11,819 Brazil
In 2009, two South African companies joined the list of Top 250
2 90 Cencosud $9,143 Chile
retailers in the Africa/Middle East region: Metcash and Woolworths. 3 131 Casas Bahia $6,608 Brazil
Metcash, a former Top 250 retailer, temporarily fell off the Top 250 4 132 Soriana $6,586 Mexico
list due to the collapse of the South African rand in 2008. 5 150 Falabella $5,644 Chile
Woolworth joined the ranks of the Top 250 Global Powers for the 6 184 Lojas Americanas $4,236 Brazil
7 194 Comercial Mexicana $4,012 Mexico
first time in 2009. Migros Ticaret became the 4th-largest retailer in
8 196 FEMSA Comercio $3,979 Mexico
the region by opening 432 new stores in 2009, boosting the
9 219 Comercial Chedraui $3,522 Mexico
company ahead of SPAR Group. 10 241 El Puerto de Liverpool $3,130 Mexico
Africa/Middle East
1 95 Shoprite Holdings $8,823 South Africa
2 130 Pick ‘n Pay $6,810 South Africa
3 138 Massmart $6,274 South Africa
4 206 Migros Ticaret $3,691 Turkey
5 211 SPAR $3,627 South Africa
6 220 BİM $3,440 Turkey
7 245 Metcash $3,105 South Africa
8 248 Woolworths Holdings $3,093 South Africa


Top 250 develop presence in emerging markets

In 2009, 147 Top 250 retailers, or nearly 60 percent of the total Top 250 new market entries by sub-region, 2009
group, operated in more than one country. To get a better picture of North America 0
the geographic distribution and global expansion of the Top 250, Western Europe 6 1
retail activity in 12 geographic sub-regions was tracked. Of the 147 Central Europe 11 1 2
retailers with operations outside their domestic market, 115 (or Eastern Europe 2
more than three-quarters) had a presence in more than one East Asia 1 1
sub-region, while 32 operated only within their sub-region. Southeast Asia 1 1
Oceania 1
The extent to which the world’s largest retailers have expanded Central Asia 1 1 1
internationally can also be seen by comparing the number of Top Central America
& Caribbean 2 3
250 retailers doing business in each of the geographic sub-regions South America 2 2
to the number that are actually headquartered in those sub-regions. Middle East 1 11 1
In particular, a large percentage of the retailers operating in Central Africa 1 3
and Southeast Asia, Central and Eastern Europe, and the Middle 0 3 6 9 12 15
East are not based in those sub-regions. This is in sharp contrast to Organic growth Franchising/licensing
Western Europe and North America—mature markets that are home Joint venture
to 80 percent of the Top 250 retailers doing business there. Source: Published company data

Top 250 retailers by sub-region, 2009
In 2009, the Top 250 continued to increase their global coverage
North America 94 118 by entering new markets. Thirty-eight retailers began operations in
Western Europe 88 109 a new country for the first time, with a combined total of 57 new
Central Europe 2 66 market entries involving 42 countries located in 11 of the 12
Eastern Europe 2 33 sub-regions. Not surprisingly, no retailers entered the North
East Asia 43 81 American market for the first time in 2009.
Southeast Asia 1 34
Oceania 2 25 Nearly half the time, in 27 of the 57 market entries recorded, the
Central Asia 17 new country was located either in Central Europe (14 times—
Central America particularly Bulgaria and Albania) or the Middle East (13 times—
& Caribbean 5 45
South America 5 22 particularly Kuwait and the United Arab Emirates). This shows that
Middle East 2 41 retailers continue to expect a disproportionate share of consumer
Africa 6 29 spending growth will take place in emerging markets in the years
0 20 40 60 80 100 120 ahead.
Top 250 retailers headquartered in sub-region
Top 250 retailers doing business in sub-region
Source: Published company data


Four methods of market entry were tracked for this analysis: organic Top 250 sales growth and proﬁtability by level of globalization
growth, joint ventures, acquisitions, and franchising/licensing.
8
Organic growth was the primary method employed; it was used for 7 6.3 6.3
half (29 of 57) of the new market entries in 2009. 6 5.3 5.3
Franchising/licensing was used 42 percent of the time that retailers 5
entered a new country (24 times). Joint ventures were established as 4 3.6 3.5
3.2 3.2
3 2.3 2.3
the market entry method on four occasions. None of the new
2
market entries in 2009 involved mergers and acquisitions. 1 0.6
1.0
0
Companies Companies Companies with Companies with
Retailers that entered Central European countries did so mostly operating in operating in 25%+ sales 100% sales
through organic growth (11 of 14 times). For expansion into Middle 5+ countries 1 country from foreign from domestic
operations operations
Eastern countries, the primary method of market entry was
franchising/licensing (11 of 13 times). 2004-2009 composite 2009 composite retail
retail sales CAGR* sales growth

2009 composite net proﬁt margin
Despite a growing global footprint, Top 250 performance by level of
globalization shows that going global is not a surefire strategy for *Compound annual growth rate
sustainable growth. Sales growth for domestic-only retailers
outpaced retailers with a more global base of operations. On the
other hand, retailers with a larger global presence were more
profitable.


Global Powers of Retailing product sector analysis

The Global Powers of Retailing analyzes retail performance by primary retail product
sector as well as geography. Four sectors are used for analysis: Fast-Moving Consumer
Goods, Fashion Goods, Hardlines & Leisure Goods and Diversified. A company is
assigned to a specific product sector if at least half of its sales are derived from that
broadly defined product category. If none of the three specific product sectors account
for at least 50 percent of sales, the company is considered to be diversified.

Food retailers advance Share of Top 250 retailers by product sector, 2009
Building on momentum from 2008, retailers of food and other fast-
moving consumer goods (FMCG) once again gained ground among
9.2%
the Top 250 Global Powers. Food retailers’ relative resilience in 14.0%
recessionary times allowed the FMCG sector to increase both its
share of companies and its share of sales. In 2009, the sector
accounted for more than half of Top 250 companies and more than 21.2%
two-thirds of Top 250 sales. FMCG retailers are, by far, the largest
companies as well as the most numerous, with average 2009 sales
of $18.4 billion. Despite sluggish composite retail sales growth of
1.7 percent in 2009 (down from 8.6 percent in 2008), this sector
nevertheless outperformed the others on the top line. And the 55.6%
bottom line for this historically low-margin sector improved to 2.5
percent from a composite net profit margin of 2.2 percent in 2008.

Fashion
Frugal consumers put the squeeze on fashion retailers again in
FMCG
2009. Sales were essentially flat for the 35 companies that make up
Hardlines & leisure
the Fashion Goods sector, edging up just 0.7 percent over the prior
Diversiﬁed
year. As a result, this group fell as a share of the Top 250. These
relatively small companies (average sales of $8 billion) accounted for
14 percent of Top 250 companies but just 7.5 percent of Top 250
Share of Top 250 sales by product sector, 2009
sales—both down from 2008. Although sales were stagnant, the
bottom line was much improved. The composite net profit margin
for the Fashion Goods sector nearly doubled from 4.1 percent in 9.2% 7.5%
2008 to 7.6 percent in 2009.

15.3%
The collapse of the housing market in the United States and Europe
took its toll on the Hardlines & Leisure Goods sector for the second
straight year. Composite sales fell to 1.1 percent in 2009 from
3.1 percent in 2008. The Home Depot and Lowe’s both suffered
another year of declining sales. On the other hand, the majority of
retailers in this sector enjoyed healthier profits; the composite net
68.0%
profit margin rose more than one point to 3.8 percent.

The Diversified group was the only sector to experience declining
sales in 2009. As with the other sectors, however, overall Fashion
profitability improved. FMCG
Hardlines & leisure
Diversiﬁed


Sales growth and profitability by product sector (%) Fashion’s growing global footprint
Of the four product sectors, Fashion Goods retailers have been the
8 7.6
most globally active. Although retail sales from foreign operations
7 6.5
6.1 6.1 accounted for between 20 and 25 percent of total sales for all of
6
5.0
the sectors, fashion retailers had the biggest global footprint in
5 4.7
terms of the number of countries in which they operated.
4 3.8
3.1
3 2.5 2.3 Fashion retailers engaged consumers through stores, catalogs and/or
2 1.7
1.3
1.1
websites in an average 17.5 countries, more than twice the average
1 0.7
for the Top 250 as a whole. This can be explained, in part, by a
0
move toward greater internationalization of styles created by highly
-1 -0.8 rationalized, multi-national fashion retailers. Companies like H&M,
Top 250 Fashion Fast-moving Hardlines Diversified Inditex and Fast Retailing have continued to defy the economic
goods consumer & Leisure
goods goods downturn through steady global expansion. Despite fashion
retailers’ wide geographic reach, however, only one-quarter of the
2004-2009 composite retail 2009 composite retail
sales CAGR* sales growth sector’s combined sales were derived from foreign operations.
That is because, in many cases, these retailers operate only a
2009 composite net profit margin
flagship location or a handful of stores outside their home country.
*Compound annual growth rate
Source: Published company data and Planet Retail Retailers of fast-moving consumer goods operated in the fewest
number of countries in 2009, an average of 4.4. Indeed, half of the
FMCG companies were single-country operators, compared with less
Asset turnover and ROA by product sector
than one-quarter of the fashion retailers. Taste differences and other
2009 composite 2009 composite cultural barriers, not to mention the sheer size of the investment
asset turnover return on assets
required, can make the global expansion of food retailing difficult.
Top 250 1.6 4.9%
Nevertheless, FMCG retailers that have expanded internationally
Fashion goods 1.1 8.0%
have made their presence felt, as foreign operations generated a
Fast-moving consumer goods 1.8 4.2%
relatively large 21.2 percent of the sector’s total sales.
Hardlines & leisure goods 1.5 5.6%
Diversified 1.4 3.2%

Product sector profiles

% retail
Average sales from % single
2009 foreign Average # country
retail sales operations countries operators
Among the product sectors, the high-margin Fashion Goods retailers # companies (U.S. $mil) 2009 2009 2009
had the highest return on assets (8 percent), followed by the Top 250* 250 $15,054 22.2% 7.7 41.2%
Hardlines & Leisure Goods group. As would be expected, the Fashion 35 $8,018 24.7% 17.5 22.9%
lower-margin FMCG and Diversified sectors generated lower ROA goods
Fast-moving 139 $18,425 21.2% 4.4 50.4%
figures. However, FMCG retailers were the most efficient at using
consumer
their assets to generate sales. The asset turnover ratio for this group goods
was 1.8 times, a reflection of their rapid inventory turnover rate Hardlines 53 $10,842 24.8% 9.2 34.0%
compared with the other sectors. Fashion Goods retailers (1.1 times) & leisure
goods*
had the lowest asset turnover rate.
Diversified 23 $15,099 23.8% 9.3 30.4%

*Average number of countries excludes Dell (Hardlines), whose near-global
coverage would skew the average


Top 10 retailers by product sector, 2009 Top 10 retailers by product sector
The top 10 retailers of Fast-Moving Consumer Goods were a fairly
Top Retail
Sector 250 sales Country stable group in 2009. The only changes were toward the bottom of
rank rank Company (U.S.$ mill) of origin the list. Walgreens pulled ahead of Rewe, and CVS Caremark
became the 10th-largest retailer in the sector, while Auchan dropped
Fast-moving consumer goods retailers
off the list on stagnant 2009 sales.
1 1 Wal-Mart $405,046 U.S.
2 2 Carrefour $119,887 France
Once again, currency fluctuations influenced the rankings, in this
3 4 Tesco $90,435 U.K.
case among the top 10 Fashion Goods retailers, moving Japan’s
4 5 Schwarz $77,221 Germany
Isetan Mitsukoshi above Sweden’s H&M despite deteriorating sales
5 6 Kroger $76,733 U.S.
for the former and double-digit growth for the latter. The only other
6 8 Costco $69,889 U.S.
7 9 Aldi $67,709 Germany
change in this sector’s leader board involved Arcandor, which filed
8 11 Walgreens $63,335 U.S.
for bankruptcy and is no longer represented as a Top 250 Global
9 12 Rewe $61,771 Germany
Power. It was replaced by C&A Europe as the 10th-largest retailer of
10 13 CVS Caremark $55,355 U.S.
fashion goods.
Fashion goods retailers
1 36 Macy’s $23,489 U.S.
The Home Depot hung onto the top spot in the Hardlines & Leisure
2 38 TJX $20,288 U.S.
Goods sector, not by virtue of its sales growth (negative in 2009),
3 45 J.C. Penney $17,556 U.S. but because of its sheer size. Poor sales dropped rival Lowe’s into
4 46 Kohl’s $17,178 U.S. third place, while several years of double-digit growth boosted Best
5 50 Inditex $15,424 Spain Buy into the NO. 2 spot. Amazon.com continued to climb the ranks
6 59 Gap $14,197 U.S. of the Top 250 in 2009, becoming the 35th-largest retailer in the
7 61 LVMH $13,794 France world. Among the Hardlines & Leisure group, the e-commerce
8 62 Isetan Mitsukoshi $13,575 Japan retailer ranked fifth. France’s PPR, which also sells books, music
9 65 H&M $13,218 Sweden and video games through its Fnac entertainment stores—along
10 94 C&A Europe $8,882 Belgium/Germany with operating a wide array of other formats—fell to NO. 7.
Hardlines & leisure goods retailers Groupe Adeo, a leading player in the international DIY market,
1 9 Home Depot $66,176 U.S. acquired Castorama Italy from Kingfisher in January 2009, moving
2 17 Best Buy $49,694 U.S. the company into 10th place and bumping Toys “R” Us out of the
3 19 Lowe’s $47,220 U.S. top 10.
4 30 IKEA $29,100 Sweden
5 35 Amazon.com $23,856 U.S. Changes among the top 10 Diversified retailers have to do with how
6 37 Yamada Denki $21,734 Japan two retailers were classified. The reclassification of Tenglemann—its
7 44 PPR $18,714 France OBI DIY division now accounts for the majority of the company’s
8 52 Kingfisher $15,381 U.K. sales—removed it from the list of the top 10 Diversified retailers
9 57 Staples $14,635 U.S. and into the Hardlines & Leisure Goods sector. Marks & Spencer,
10 60 Groupe Adeo $13,807 France formerly classified in the FMCG sector, was changed to a Diversified
Diversified retailers company, occupying fifth place among this group.
1 3 Metro $90,850 Germany
2 10 Target $63,435 U.S.
3 21 Sears Holdings $44,043 U.S.
4 43 El Corte Inglés $18,759 Spain
5 53 Marks & Spencer $15,224 U.K.
6 69 Otto Group $12,572 Germany
7 82 Kesko $10,429 Finland
8 89 J. Front Retailing $9,389 Japan
9 96 Lotte Shopping $8,823 S. Korea
10 107 Hudson’s Bay Trading $8,266 U.S.


Top 250 newcomers Fastest 50 pursue
multiple paths
The list of Top 250 Global Powers did not change as much in 2009 Profitable growth is the mission of every retail company, but there
as it has in previous years. Only 13 companies joined the ranks in was no single pathway to this goal among the 50 fastest-growing
2009, nine of them making the list for the first time. As might be retailers in 2009. Aggressive organic growth, particularly in
expected, the newcomers enjoyed strong growth: Composite sales emerging markets, acquisitions and a focus on high-growth
were a robust 8.2 percent, compared with 1.3 percent for the Top products, consumer segments, formats and channels all contributed
250 overall, and six of these companies were among the 50 fastest- to double-digit sales growth for the Fastest 50. Between 2004 and
growing retailers on the Top 250 list. 2009, composite sales increased at a compound annual rate of
19.9 percent, more than three times the pace of the Top 250
While top-line performance generally determines who does and overall.
doesn’t make the Top 250, currency fluctuations had a significant
impact on the results in 2009. A favorable exchange rate helped This group was not immune from the recession, however. A number
three Japanese companies make it into the Top 250, while of companies struggled to maintain their aggressive growth trajectory
Debenhams and Arcadia Group dropped off the list strictly as a in 2009, and eight recorded a decline in year-over-year sales. Still, all
result of the weak British pound. Still, most displaced retailers 39 of the companies that disclosed their bottom-line results were
dropped off due to deteriorating sales. Other exceptions include profitable. Moreover, the composite net profit margin for the
Chilean hypermarket operator Distribución y Servicio (D&S), which 50 fastest-growing retailers (4.5 percent) exceeded that of the
was acquired by Wal-Mart, and German retail group Arcandor, Top 250 (3.1 percent).
which filed for insolvency, unable to adapt quickly enough to the
deteriorating economic environment. Among those retailers new to the ranks of the Fastest 50 in 2009 is
the U.K.’s Co-operative Group. The supermarket operator completed
the acquisition of Somerfield in March 2009, boosting its compound
Top 250 newcomers, 2009 annual growth rate to 16.6 percent over the 2004-2009 period.
Adapting to a more frugal consumer, Coach, a leading American
Top
250 Country designer and marketer of handbags and accessories, adopted a new
rank Name of company of origin Dominant format pricing strategy and created less expensive product. This contributed
177 Bass Pro Shops Inc. U.S. Other Specialty to the company’s recent strong growth in a weak retail environment
219 Grupo Comercial Mexico Hypermarket/Supercenter/ and a five-year compound annual growth rate of 27.5 percent.
Chedraui, S.A.B. de C.V. Superstore
As a result, it appears on the list of the Top 250 Global Powers for
232 Tractor Supply Company U.S. Other Specialty
the first time.
Demoulas Super U.S. Supermarket
234
Markets, Inc.
235 Kintetsu Department Japan Department Store
Grupo Chedraui, a Mexican hypermarket and supermarket operator,
Store Co., Ltd. is also a Top 250 newcomer and a member of the Fastest 50. From
236 Müller Ltd. & Co. KG Germany Drug Store/Pharmacy 2005 to 2009, the company more than doubled its store count by
237
Liquor Control Board of Canada Other Specialty opening or acquiring 94 new stores (including 29 from Carrefour
Ontario
in Mexico and seven from Grupo Gigante in the United States).
238 Coach, Inc. U.S. Other Specialty
In 2010, the company used proceeds from its recent IPO to
239 Ingles Markets, Inc. U.S. Supermarket
purchase Los Angeles-based Fiesta Foods, expanding its reach to
242 Sugi Holdings Co., Ltd. Japan Drug Store/Pharmacy
the Hispanic market in the southwestern United States.
245 Metcash Trading Africa South Cash & Carry/Warehouse Club
(Pty) Ltd. Africa
248 Woolworths Holdings South Department Store
Retailers in fast-growing geographic markets also are well
Limited Africa represented among the Fastest 50. Included are five of the eight
250 Fuji Co. Ltd. Japan Hypermarket/Supercenter/ Top 250 retailers comprising the Africa/Middle East region and four
Superstore
of the five Chinese companies.


50 Fastest-growing retailers 2004-2009

Top 2009 2004-2009 2009 2009
Growth 250 Country retail sales retail sales retail sales net profit
rank rank Name of company of origin (U.S. $mil) Operational formats CAGR* growth margin

1 23 Wesfarmers Limited Australia 40,287.853 Convenience/Forecourt Store, Discount 62.3% 4.4% 3.1%
Department Store, Drug Store/Pharmacy,
Home Improvement, Hypermarket/
Supercenter/Superstore, Other Specialty,
Supermarket
2 152 Open Joint Stock Company Russia 5,346.404 Convenience/Forecourt Store, 45.7% 0.4% 5.1%
“Magnit” Hypermarket/Supercenter/Superstore
3 104 Suning Appliance Co. Ltd. China 8,547.385 Electronics Specialty 45.0% 16.8% 5.1%
4 133 Apple Inc. / Apple Stores U.S. 6,574.000 Electronics Specialty 40.9% 4.1% 15.6%
5 92 GameStop Corp. U.S. 9,077.997 Other Specialty 37.6% 3.1% 4.1%
6 90 Cencosud S.A. Chile 9,142.559 Cash & Carry/Warehouse Club, Department 30.5% -13.2% 1.9%
Store, Drug Store/Pharmacy, Electronics
Specialty, Home Improvement,
Hypermarket/Supercenter/Superstore,
Supermarket
7 184 Lojas Americanas S.A. Brazil 4,236.430 Discount Department Store, Non-Store 29.6% 19.5% 1.9%
8 220 BİM (Birleşik Mağazalar A.Ş.) Turkey 3,439.975 Discount Store 28.8% 25.5% 4.0%
9 86 Gome Home Appliance Group China 9,822.870e Electronics Specialty 28.7% -4.3% n/a
10 35 Amazon.com, Inc. U.S. 23,856.000 Non-Store 28.6% 28.1% 3.7%
11 238 Coach, Inc. U.S. 3,155.860 Other Specialty 27.5% 15.7% 20.4%
12 29 SuperValu Inc. U.S. 31,637.000 Discount Store, Drug Store/Pharmacy, 24.6% -8.7% 1.0%
Supermarket
13 163 O’Reilly Automotive, Inc. U.S. 4,847.062 Other Specialty 23.0% 35.5% 6.3%
14 242 Sugi Holdings Co., Ltd. Japan 3,118.656 Discount Store, Drug Store/Pharmacy 22.6% 7.4% 1.8%
15 215 Associated British Foods plc/ U.K. 3,590.402 Apparel/Footwear Specialty 21.9% 19.7% 4.1%
Primark
16 211 The SPAR Group Limited South Africa 3,626.565 Convenience/Forecourt Store, 21.7% 19.5% 2.3%
Hypermarket/Supercenter/Superstore, Other
Specialty, Supermarket
17 170 China Resources Enterprise, Hong Kong 4,626.456 21.0% 3.7% 5.9%
Apparel/Footwear Specialty,
Limited SAR
Convenience/Forecourt Store, Department
Store, Hypermarket/Supercenter/
Superstore, Other Specialty, Supermarket

18 219 Grupo Comercial Chedraui, S.A.B. Mexico 3,521.539 Hypermarket/Supercenter/Superstore, 20.8% 18.0% 2.9%
de C.V. Supermarket
19 206 Migros Ticaret A.Ş. (formerly Turkey 3,690.621 Discount Store, Hypermarket/ 20.5% 12.6% 1.9%
Migros Türk T.A.Ş.) Supercenter/Superstore, Supermarket
20 196 FEMSA Comercio, S.A. de C.V. Mexico 3,978.691 Convenience/Forecourt Store, 19.1% 13.6% n/a
Discount Store
21 146 Dirk Rossmann GmbH Germany 5,740.297 Drug Store/Pharmacy 19.0% 6.9% n/a
22 173 Wawa Inc. U.S. 4,550.000e Convenience/Forecourt Store 18.2% 1.1% n/a
23 221 Nonggongshang Supermarket China 3,438.005e Convenience/Forecourt Store, Discount 17.6% 7.7% n/a
Group Co. Ltd. Store, Hypermarket/Supercenter/
Superstore, Supermarket
24 21 Sears Holdings Corp. U.S. 44,043.000 17.5% -5.8% 0.7%
Apparel/Footwear Specialty, Department
Store, Discount Department Store, Home
Improvement, Hypermarket/Supercenter/
Superstore, Non-Store, Other Specialty

25 95 Shoprite Holdings Ltd. South Africa 8,823.498e Cash & Carry/Warehouse Club, 17.3% 13.6% 3.4%
Convenience/Forecourt Store, Discount
Store, Electronics Specialty,
Hypermarket/Supercenter/Superstore, Other
Specialty, Supermarket

26 145 Dalian Dashang Group China 5,864.400e Department Store, Electronics Specialty, 17.2% 7.7% n/a
Other Specialty, Supermarket

27 85 Jerónimo Martins, SGPS SA Portugal 9,931.912 Cash & Carry/Warehouse Club, Discount 17.1% 7.6% 3.1%
Store, Hypermarket/ Supercenter/



50 Fastest-growing retailers 2004-2009

Top 2009 2004-2009 2009 2009
Growth 250 Country retail sales retail sales retail sales net profit
rank rank Name of company of origin (U.S. $mil) Operational formats CAGR* growth margin
28 240 MAXIMA GRUPĖ, UAB Lithuania 3,130.788 Cash & Carry/Warehouse Club, Home 16.9% -9.0% n/a
Improvement, Hypermarket/
Supercenter/Superstore, Supermarket
29 66 Co-operative Group Ltd. U.K. 13,066.277 Convenience/Forecourt Store, Drug 16.6% 56.7% 1.3%
Store/Pharmacy, Supermarket
30 178 Dick’s Sporting Goods, Inc. U.S. 4,412.835 Other Specialty 15.9% 6.8% 3.1%
31 113 Whole Foods Market, Inc. U.S. 8,031.620 Supermarket 15.8% 1.0% 1.8%
32 172 NorgesGruppen Norway 4,589.222 Convenience/Forecourt Store, Discount 15.6% 11.1% 2.2%
Store, Hypermarket/Supercenter/
33 48 Alimentation Couche-Tard Inc. Canada 16,439.600 Convenience/Forecourt Store 15.4% 4.2% 1.8%
34 160 Save Mart Supermarkets U.S. 4,900.000e Supermarket 15.3% -3.9% n/a
35 132 Organización Soriana, Mexico 6,585.753 Cash & Carry/Warehouse Club, 15.3% -7.3% 3.2%
S.A.B. de C.V. Convenience/Forecourt Store,
Supermarket
36 50 Inditex S.A. Spain 15,423.613 Apparel/Footwear Specialty, 15.3% 6.7% 11.9%
Other Specialty
37 150 S.A.C.I. Falabella Chile 5,643.511e Department Store, Home Improvement, 15.1% -6.2% 6.5%
Supermarket
38 156 Don Quijote Co., Ltd. Japan 5,139.155 Discount Department Store, Discount Store, 15.1% 1.7% 2.2%
Home Improvement,
Hypermarket/Supercenter/Superstore
39 93 Reitangruppen AS Norway 9,068.308e Convenience/Forecourt Store, Discount 15.1% 0.4% n/a
Store, Electronics Specialty
40 124 Fast Retailing Co., Ltd. Japan 7,117.597 Apparel/Footwear Specialty 15.0% 16.8% 7.3%
41 60 Groupe Adeo SA France 13,806.837e Home Improvement 14.6% 10.0% 4.8%
42 177 Bass Pro Shops Inc. U.S. 4,440.000e Non-Store, Other Specialty 14.1% 12.9% n/a
43 13 CVS Caremark Corp. U.S. 55,355.000 Drug Store/Pharmacy 14.0% 13.0% 3.7%
44 248 Woolworths Holdings Limited South Africa 3,093.256 Apparel/Footwear Specialty, 13.9% 10.5% 5.4%
Convenience/Forecourt Store,
Department Store
45 126 K’s Holdings Corporation Japan 6,992.210 Electronics Specialty, Other Specialty 13.6% 14.1% 2.5%
46 65 H & M Hennes & Mauritz AB Sweden 13,217.591 Apparel/Footwear Specialty 13.6% 14.5% 16.2%
47 182 WinCo Foods LLC U.S. 4,300.000e Supermarket 13.3% 7.5% n/a
48 87 Metro Inc. Canada 9,525.333 Convenience/Forecourt Store, Drug 13.3% 4.4% 3.2%
Store/Pharmacy, Hypermarket/
Supercenter/Superstore, Supermarket
49 75 Grupo Pão de Açúcar Brazil 11,819.404 Cash & Carry/Warehouse Club, 13.1% 29.0% 2.7%
Convenience/Forecourt Store, Electronics
Specialty, Hypermarket/Supercenter/
Superstore, Supermarket
50 232 Tractor Supply Company U.S. 3,206.937 Other Specialty 13.0% 6.6% 3.6%
Fastest 50 sales-weighted, currency-adjusted composite 19.9% 7.0% 4.5%
Top 250 sales-weighted, currency-adjusted composite 6.1% 1.3% 3.1%



Q ratio analysis for Global Powers

For the last six years, this report has included an analysis of the Q Which companies have high Qs?
ratio of publicly traded retailers on the Top 250 Global Powers of There are 144 publicly traded companies among the current Top
Retailing list. The most notable aspect of this year’s Q ratio analysis 250 Global Powers of Retailing. The composite Q ratio for these
is the impressive position of retailers based in emerging markets. companies is 1.144 based on their market capitalization as of
These retailers have always had a composite Q ratio higher than November 24, 2010. This is a slight improvement from 2009 when
that of all companies on the list. Yet this year the result for the composite Q was 1.03 and far better than the miserable 0.75
emerging market retailers is far higher than ever. Moreover, of the recorded in 2008, a dismal year for the economy and retailing. The
top 30 companies ranked by Q ratio, 11 hail from emerging improvement reflects the rise of equity prices during the past two
markets. years. Yet 2010’s composite Q remains far below the 1.57 recorded
in 2007, just before the start of the global economic crisis.
Before revealing further results of this analysis, it is worth taking a
moment to understand what it is all about. The company with the highest Q ratio is Hennes & Mauritz, the
Swedish apparel specialty retailer. This is no surprise as H&M has
What is the Q ratio, and why do we care? been at or near the top of the list since the list began. Yet the
In the current and anticipated business environment, the world’s second company on the list is BIM, the Turkish hard discount
leading retailers will face intense competition, slow growth in major retailer. This is the first time that an emerging market retailer was
developed markets, rising input prices but consumer resistance to number two on the list.
higher retail prices, and excess retail capacity in many developed
markets. All of this implies that, in order for retailers to succeed,
they will have to find ways to distinguish themselves from Composite Q ratios

competitors. That means having strong brand identity, offering
By merchandise category
consumers a superior shopping experience, and being clearly
Diversified 0.871
differentiated from competitors. The latter can entail unique
Fashion 1.779
merchandise offerings including private brands, unique store
FMCG 0.818
formats and designs, and unusual customer experiences. The goal is
Hardlines/Leisure 1.754
to have a sufficiently unique position in the market to generate
By format
pricing power and, consequently, strong profitability. If a publicly
Apparel/Footwear specialty 2.801
traded retailer has these characteristics, the financial markets are
Convenience store 0.449
likely to reward such a retailer. That is where the Q ratio comes in.
Department store 0.668
Discount store 1.887
The Q ratio is the ratio of a publicly traded company’s market
Diversified 0.671
capitalization to the value of its tangible assets. If this ratio is greater
Drug store 0.783
than one, it means that financial market participants believe that
Electronics specialty 3.173
part of a company’s value comes from its intangible assets. These Home improvement 1.005
can include such things as brand equity, differentiation, innovation, Other specialty 1.649
customer experience, market dominance, customer loyalty, and Supermarket 0.878
skillful execution. The higher the Q ratio, the greater the share of a By region/country
company’s value that stems from such intangibles. A Q ratio of less Africa/Middle East 2.588
than one, on the other hand, indicates failure to generate value on Asia/Pac (not inc. Japan) 1.441
the basis of intangible assets. It indicates that the financial markets Canada 0.929
view a retailer’s strategy as unable to generate a sufficient return on France 0.800
physical assets. Indeed it suggests an arbitrage opportunity. That is, Germany 0.489
if a company’s Q ratio is less than one, theoretically a company Japan 0.426
could be purchased through equity markets and the tangible assets Latin America 1.819
could then be sold at a profit. South Africa 2.931
U.K. 0.741
U.S. 1.406
Western Europe 0.990
Emerging markets 1.932


Highlights Top 30 retailers by Q ratio
As mentioned, emerging market retailers did particularly well this
Hennes & Mauritz AB Sweden 7.852
year. The composite Q ratio for emerging retailers is 1.932.
BİM (Birleşik Mağazalar A.Ş.) Turkey 7.475
This compares quite favorably to U.S.-based retailers (1.406) and
Coach, Inc. U.S. 6.803
especially well compared to Western European retailers (0.99).
Amazon.com, Inc. U.S. 5.760
Among countries with three or more retailers on the list, South
Apple Inc./Apple Stores U.S. 5.362
Africa performed best. Its five retailers on the list have a composite
CP ALL Public Company Limited Thailand 4.698
Q ratio of 2.931.
Inditex S.A. Spain 4.284
Dairy Farm International Holdings Limited Hong Kong 3.996
Emerging market retailers have always done well on this list.
Compagnie Financière Richemont SA Switzerland 3.851
That reflects the fact that, if an emerging market retailer makes the
Woolworths Holdings Limited South Africa 3.847
Top 250 list, it is probably a very large player within its home
Fast Retailing Co., Ltd. Japan 3.613
market. Therefore, it is probably doing something right in order to
Lagardère Services SA France 3.589
become so large. Yet this year the Q ratio for emerging retailers rose The SPAR Group Limited South Africa 3.341
dramatically. This probably reflects increasing investor confidence in Shoprite Holdings Ltd. South Africa 3.301
emerging markets, as well as confidence in the ability of S.A.C.I. Falabella Chile 3.134
homegrown retailers in these markets to compete favorably with Dollar Tree, Inc. U.S. 3.067
global players. This suggests that such retailers may someday be Suning Appliance Co. Ltd. China 2.883
global players in their own right. Ross Stores, Inc. U.S. 2.853
Tractor Supply Company U.S. 2.511
TJX Companies, Inc. U.S. 2.465
Evolution of Q over the years Pick n Pay Stores Limited South Africa 2.334

Composite Q US Q Emerging Q Next plc U.K. 2.247

2005 1.33 1.48 Family Dollar Stores, Inc. U.S. 2.244

2006 1.37 1.62 1.74 Bed Bath and Beyond Inc. U.S. 2.229

2007 1.57 1.42 1.74 Massmart Holdings Limited South Africa 2.174

2008 0.75 0.95
Whole Foods Market, Inc. U.S. 2.140

2009 1.03 1.34 1.38
President Chain Store Corp. Taiwan 2.048

2010 1.14 1.41 1.93
Lojas Americanas S.A. Brazil 2.010
Woolworths Limited Australia 1.968
Cencosud S.A. Chile 1.915


Study methodology and data sources

Companies are included in the Top 250 Global Powers of Retailing list In order to provide a common base from which to rank companies by
based on their non-auto retail sales for fiscal year 2009 (encompassing their retail sales results, fiscal year 2009 sales (and profits) for non-U.S.
fiscal years ended through June 2010). companies were converted to U.S. dollars. Exchange rates, therefore,
have an impact on the results. OANDA.com is the source for the
A number of sources were consulted to develop the Top 250 list. The exchange rates. The average daily exchange rate corresponding to each
principal data sources for financial and other company information were company’s fiscal year was used to convert that company’s results to U.S.
annual reports, SEC filings and information found in companies’ press dollars. The 2004-2009 compound annual growth rate (CAGR) for retail
releases and fact sheets or on their websites. sales, however, was calculated in each company’s local currency.
If company-issued information was not available, other public-domain
sources were used, including trade journal estimates, industry analyst Group financial results
reports and various business information databases. This report uses sales-weighted composites rather than simple arithmetic
averages as the primary measure for understanding group financial
Much of the data for non-U.S. food retailers was provided by Planet results. Therefore, results of larger companies contribute more to the
Retail. Planet Retail provides global insight, analysis, news and data composite than do results of smaller companies. Because the data has
covering more than 9,000 retail operations across 211 markets. Planet been converted to U.S. dollars for ranking purposes and to facilitate
Retail’s customers span the entire retail supply chain as well as financial comparison among groups, composite growth rates also have been
services, consulting, advertising, IT and entertainment. Planet Retail has adjusted to correct for currency movement. While these composite
offices in London, Frankfurt, Chicago, Tokyo and Qingdao. For more results generally behave in a similar fashion to arithmetic averages, they
information, please visit www.planetretail.net. provide better representative values for benchmarking purposes.

Group sales reflect the consolidated net sales of a retailer’s parent Group financial results are based only on companies with data.
company, whether or not that company itself is primarily a retailer. Not all data elements were available for all companies. It should also be
Similarly, the income/loss figure also reflects the results of the parent noted that the financial information used for each company in a given
organization. year is accurate as of the date the financial report was originally issued.
Although a company may have restated prior-year results to reflect a
The retail sales figures in this report reflect only the retail portion of the change in its operations or as a result of an accounting change, such
company’s consolidated net sales. As a result, they may reflect restatements are not reflected in this data.
adjustments to reported sales figures to exclude non-retail operations.
Retail sales exclude separate food service/restaurant operations and This study is not an accounting report. It is intended to provide an
wholesale or other business-to-business revenue (except where such accurate reflection of market dynamics and their impact on the structure
sales are made from retail stores) where it was possible to break them of the retailing industry over a period of time. As a result of these
out. factors, growth rates for individual companies may not correspond to
other published results.
Sales figures do not include the retail banner sales of franchised, licensed
or independent cooperative member stores; they do include royalties
and franchising or licensing fees. Group sales include wholesale sales to
such networked operations, both member stores and other supplied
stores. Sales figures do not include operations in which the company has
only a minority interest.


Consumer Business contacts
For Deloitte Touche Tohmatsu (DTTL) and its member firms

Global Industry Leader Finland Spain Asia Pacific
Consumer Business Kari Ekholm Juan Jose Roque Asia Pacific Consumer Business
Lawrence Hutter kari.ekholm@deloitte.fi jroque@deloitte.es Leader
Deloitte UK Yoshio Matsushita
lhutter@deloitte.co.uk France Sweden Deloitte Japan
Antoine De Riedmatten Lars Egenaes yomatsushita@tohmatsu.co.jp
Marketing aderiedmatten@deloitte.fr legenaes@deloitte.se
Karthryn Cordes Australia
Deloitte Touche Tohmatsu Limited Germany Switzerland Andrew Griffiths
kcordes@deloitte.com Peter Thormann Howard da Silva andgriffiths@deloitte.com.au
pthormann@deloitte.de hdasilva@deloitte.ch
Deloitte Research China/Hong Kong
Ira Kalish Greece Turkey Eric Tang
Deloitte Services LP George Cambanis Ugur Suel eritang@deloitte.com.cn
ikalish@deloitte.com gcambanis@deloitte.gr usuel@deloitte.com
India
Europe, Middle East and Africa Ireland Ukraine Shyamak Tata
Richard Lloyd-Owen Marguerite Larkin Andriy Bulakh shyamaktata@deloitte.com
rlloydowen@deloitte.co.uk mlarkin@deloitte.ie abulakh@deloitte.ua
Japan
Retail Leaders Israel United Kingdom Yoshio Matsushita
Israel Nakel Richard Lloyd Owen yomatsushita@deloitte.com
Americas inakel@deloitte.co.il rlloydowen@deloitte.co.uk
Vicky Eng Korea
Deloitte Consulting LLP Italy Latin America Jae Il Lee
veng@deloitte.com Dario Righetti Latin America Consumer jaeillee@deloitte.com
drighetti@deloitte.it Business Leader
North America Omar Camacho Malaysia
Alison Paul Netherlands Deloitte Mexico Yoon Chong Yee
Deloitte Consulting LLP Erik Nanninga ocamacho@deloittemx.com ycyee@deloitte.com
alpaul@deloitte.com enanninga@deloitte.nl
Argentina/LATCO New Zealand
Canada Poland Daniel Varde Lisa Cruickshank
Peter Barr Dariusz Kraszewski dvarde@deloitte.com lcruickshank@deloitte.co.nz
pbarr@deloitte.ca dkraszewski@deloittece.com
Brazil Singapore
Europe, Middle East and Portugal Reynaldo Saad Alan Nisbet
Africa (EMEA) Luís Belo rsaad@deloitte.com anisbet@deloitte.com
lbelo@deloitte.pt
Belgium Chile Taiwan
Koen De Staercke Russia/CIS Mayorline Aguilera Benjamin Shih
kdestaercke@deloitte.com Alexander Dorofeyev mmaguilera@deloitte.com benjaminshih@deloitte.com.tw
adorofeyev@deloitte.ru
Denmark Mexico Thailand
Mie Vibeke Stryg-Madsen South Africa Omar Camacho Montree Panichakul
stryg-madsen@deloitte.dk Rodger George ocamacho@deloittemx.com mpanichakul@deloitte.com
rogeorge@deloitte.co.za


2 5 2011 Global Powers Of Retailing

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2 5 2011 Global Powers Of Retailing

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