New York – A new study of retail sales numbers around the world has found that the world’s 250 largest retailers recorded sales growth in excess of five per cent in fiscal 2010 (encompassing fiscal years ended through June 2011).
According to the 2012 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited (DTTL), produced in conjunction with STORES Media, these 2010 retail sales results mark a substantial improvement on fiscal year 2009, when the same group of retailers recorded anemic growth of just 1.2 per cent.
The report also found that profitability for the world’s top retailers improved year over year, with net profit increasing to 3.8 per cent in 2010, up from 3.1 per cent in 2009. While this performance has been impressive, this lagging indicator does not factor in the deterioration in the global economy over the latter half of 2011.
“The global economy is decelerating, with growth in 2012 likely to be slower than in 2011 in many of the world’s leading markets,” said Dr. Ira Kalish, Director of Consumer Business for Deloitte Research in the U.S. “The Eurozone crisis continues to drain investor and consumer confidence, while growth in the United States next year is unlikely to significantly reduce unemployment.
“However, retailers may find some silver linings in this otherwise cloudy environment,” added Kalish. “One positive effect of slower global growth will be the continued dampening of commodity prices. For retailers, this means some improvement on the cost side of the ledger, while retail price inflation in some economies presents an opportunity for improved profit margins even in the context of slow top-line growth.”
A downloadable copy of the 2012 Global Posers of Retailing report is available at: www.deloitte.com/consumerbusiness.