Swiss retailers in the top 250

The world's 250 largest retailers generated total sales of USD 4.74 trillion in fiscal 2018, representing year-on-year growth of 4.1%. This was revealed by Deloitte's Global Powers of Retailing 2020 study.

US companies dominate...

The first ranks are occupied by the US companies Wal-Mart, Costco and Amazon; the e-commerce giant has moved up to third place. The ten largest companies accounted for nearly one-third (32.2%) of the total sales of the top 250 in fiscal 2018 (31.6% in the previous year). The average growth of the top 10 was higher than the average of the top 250: 6.3% versus 4.1%. The net profit margin of the top 10 also increased (by 0.5 percentage points), despite the pressures faced by retailers in the face of intense competition, rising labor costs, price wars and investment in online retailing.

The majority (136) of companies in the top 250 are from the FMCG (Fast-Moving Consumer Goods) sector, accounting for nearly two-thirds (66.5%) of retail sales in fiscal 2018. FMCG retailers generated the largest average sales (USD 23.2 billion). However, it is a low-margin sector: its net profit margin of 2.0% was the lowest of all sectors.

...but largest share of the top 250 comes from Europe

The largest share of the Top 250 companies comes from Europe. 88 companies (35.2%) originate from the region and contribute 34.4% to total sales. Lidl and Aldi are the largest European retailers, ranking 4th and 8th respectively. With average sales of USD 27.6 billion, the largest companies are from the USA (for comparison, the average of the top 250 is USD 19.0 billion).

"If you look at the performance of the world's largest retailers over a five-year period, the top 250 as a whole show astonishing stability. The outlook for 2020 for the global economy and the retail industry is uncertain. Economic growth is expected to be subdued but positive, consumer spending growth will be lower, and inflation will remain low in most countries," says Karine Szegedi, a member of Deloitte Switzerland's Executive Board and a retail expert.

She adds: "In 2019, sales in the Swiss retail sector stagnated. In our opinion, this will remain the case in 2020. On the one hand, geopolitical challenges and the strong Swiss franc will probably slow down dynamic growth. On the other hand, however, the ongoing positive development of online sales should give retailers a boost. The outbreak of the corona virus could also have an impact on some Swiss retailers. In the luxury goods and watch sectors, the first effects are already being felt, as consumption in Asia is declining sharply."

Swiss retailers in the top 250: Migros, Coop, Richemont and Dufry

Migros and Coop defended their places in the top 50: Migros remains in 39th place with sales of USD 25.13 billion in fiscal 2018, while Coop dropped two ranks to 46th place with sales of USD 23.47 billion. Geneva-based luxury goods company Richemont broke into the top 100 for the first time; its new online retail segment in particular had a positive impact on performance. The travel retailer Dufry continues to develop excellently. With an impressive annual growth rate of 19.5% over the last five years (2013-2018), Dufry (ranked 120) is one of the fastest growing retailers worldwide.

"2020 is unlikely to be a particularly dynamic year for the Swiss retail market. However, we are cautiously optimistic and believe that Swiss retailers will be able to keep pace with the other major players. Online retailing should continue to grow next year, especially in the food and beverage sector, where the share of sales in Switzerland is far below that of other countries," explains Karine Szegedi.

Source: Deloitte