The annual list of the world’s most important retailers is not just a list of names with numbers. Above all, it is a fascinating indicator of the consumption habits of Earthlings.
Do you know Bernard Arnault? He is the richest man in the world. His fortune exceeds that of Elon Musk and Jeff Bezos, according to Forbes and Bloomberg. It is around 200 billion US, including that of his family.
Mr. Arnault did not invent anything revolutionary, unlike those who stick to his butt in the list of the rich and famous. He is the head of LVMH. This French group owns the brands Louis Vuitton, Christian Dior, Moët & Chandon, Veuve Clicquot and Guerlain, among others. None are recent, but they continue to grow at breakneck speed.
In fact, demand for luxury goods exploded following the first year of the pandemic, marked by store closures around the world.
This is one of the findings of Global Powers of Retailing 2023, this compilation from the accounting firm Deloitte which lists the 250 largest retailers in the world, according to sales.
We learn that in Europe, the four retailers that have experienced the strongest growth are all navigating the world of great luxury.
The first place is occupied by LVMH. Its revenue increased by 51% over the previous year, reaching US$56 billion. This strong performance is partly explained by the acquisition of Tiffany & Co jewelry stores and by demand in the Asian markets and the United States.
Compagnie Financière Richemont, owner of brands such as Cartier and Montblanc, came second, with a 46% growth in turnover. The Kering group, behind which hide Gucci, Saint Laurent and Balenciaga, saw its sales jump by 40%. Hermès and its famous silk scarves show only a “small” increase of 22%.
In comparison, the average sales growth of the top 250 is 8.5%.
It’s not just in the Monopoly game that the rich always get richer. The performance of these companies that sell handbags at $13,700 and shoes at $2,800 is a clear demonstration of this.
E-commerce is also experiencing a meteoric rise.
Last year, I told you that the Chinese site JD.com had just made its debut among the 10 largest retailers in the world. The company jumped up two more ranks in one fell swoop, thanks to a 25% increase in sales, which is rarely seen at the top of the pyramid.
The rise to 7e world ranking has been made at lightning speed: JD.com entered the Deloitte list in 2014. This speaks volumes regarding the potential of the Chinese market, the only one where JD.com sells its range of products ranging from make-up to clothing, delicatessen and furniture. Amazon, at 2e rank, sells in 21 countries. Both virtual retailers have of course benefited from the online shopping craze “during and following the pandemic,” notes Deloitte.
But among the giants of giants, it was Costco, with its expansive stores, that had the most exceptional year. Its sales jumped 17.5%. That’s better than Amazon (+12%), The Home Depot (+14%) and Walmart (+2%). It must be said that the empire founded by Sam Walton sold its British supermarkets Asda and the chain of stores Seiyu, from Japan. These transactions reduced sales from international activities. Which did not prevent Walmart from remaining at the top of the ranking, mind you.
And Canada, in all this? Eight of its major retail chains are in the ranking, five of which are in the food or alcohol sector.
Lululemon’s popularity has seen it jump an impressive 43 ranks. The British Columbia retailer sold $6 billion worth of yoga apparel in its last fiscal year. This is a little higher than the sales of the LCBO, the Ontario equivalent of our SAQ.
Alimentation Couche-Tard can also boast of having gained 15 ranks at once, which puts it close to Gap and Decathlon. Its case is special, however, because a significant proportion of its income comes from gasoline. However, Deloitte does not consider this activity as retail. Thus, the Quebec company finds itself at 73e rank, with a turnover of 16 billion. In total, however, Couche-Tard achieves sales of 62 billion US, indicates the classification of the accounting firm. It is more than the French group LVMH.
Only one other Quebec company name – Metro au 85e rank – is present in the ranking.
Ten years ago, Canada had 10 companies in the top 250. Among them, four are no longer there: The Hudson’s Bay Company, Rona, Shoppers Drug Mart/Pharmaprix and Katz, a chain of pharmacies. And two new names have entered the rankings, Lululemon and Save-on-Food, which have fallen significantly this year.
Will Canada’s place be different in the next list? The answer in February 2024.