Deloitte recently published its Global Powers Of Retailing 2012 Report. This report provides a global retailing outlook, highlights key trends and analyzes the top 250 companies in global retailing. Five key trends were listed in the industry.
According to Deloitte, retailers will be continuing to look at entering emerging markets that are currently characterized by high growth. These emerging markets include areas such as Asia Pacific, Africa and South America. Acquiring desired real estate from local sources and tailoring stores to local needs will be important.
The second trend identified in the report is the use of multi-channel strategies. Retailers will be looking to develop innovative strategies that encompass mobile, social networking, the internet and the bricks-and-mortar store. Consumers are increasingly using these various platforms so companies must be proficient in these various areas.
Mobile was the third trend identified. The popularity of smartphones has been an area that retailers cannot ignore. According to Deloitte, they are “emerging as the most dominant consumer technology platform” (8). Also, “the ability to leverage mobile to deliver an improved customer experience will be a critical success factor” (Deloitte, 8). Retailers must try to develop usable and effective apps for these phones.
Data Analytics is another area that has vastly changed. As new channels continue to develop, more and more customer information is collected from these various channels. Analytics will be able to derive and analyze all of this information to improve customer offerings.
Lastly, the bricks-and-mortar store still remains the core of retailers’ operations. However, as multiple channel strategies are developed, retailers must adjust store-operating models as deemed fit to efficiently integrate all channels together.
Canadian retailers place in Deloitte’s report of the top 250 global retailers as measured by retail sales (US$m) has improved this year over last year. Actually, all of the 10 Canadian companies that made the list in 2012 improved their list ranking over last year.
Top honors for most improved list ranking year over year goes to Canadian Tire Corporation which bumped up to spot 118 from spot 127 last year. Jim Pattison Group and Rona also bumped up their list rankings by 8 spots to 205 and 235 respectively.
Loblaw had the highest retail sales of all Canadian companies on the list, and thus took the 39th spot. Sales were USD$21,782m and net income was USD$679m.
This was followed by Alimentation Couche-Tard Inc. (43rd), Empire Company Limited/Sobey’s (53rd), Metro Inc. (86th), Shoppers Drug Mart (93rd), Canadian Tire Corporation (118th), Katz Group Inc. (147th), Jim Pattison Group (205th), Liquor Control Board of Ontario (232nd) and Rona (235th).
Of notable mention, Alimentation Couche-Tard Inc. made the list of the 50 fastest growing retailers this year and last. Also, the Liquor Control Board of Ontario was a newcomer to the top 250 global list last year at spot number 237 and improved to spot 232 this year.
Nine out of ten of the Canadian companies have operations solely in Canada. Alimentation Couche-Tard Inc. is the only Canadian retailer with international operations in a total of 9 countries.
According to Deloitte, growth in 2012 is “likely to be slower than was experienced in 2011 in many of the world’s leading markets” (4).
Canadian retailers will have to utilize some or all of the key trends identified to remain competitive and improve sales and profits in 2012.
View full Deloitte report here.