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8/3/2019 Retail Finaal

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GLOBAL RETAILING: ASIA, US &EUROPE


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RETAILING IN US

INTRODUCTION

The US retail industry is flurished retail giants. Retail, with more than 14 million employees inAmerica alone, is one of the largest industries in the world by number of businesses and numberof employees. The retail industry is the second largest industry in the U.S. The retail industryresponsible for two-thirds of the U.S GDP. Responsible for approximately 12% of all USemployment, U.S. retail companies have also established a presence on every continent. USalone contributes 20% of absolute sales growth. The majority of the revenue in the retailindustry is generated by companies that run retail "chains". The biggest retailer in the world isWal-Mart, which generated over $344 billion in revenue in its last fiscal year.

SIZE OF THE US RETAIL INDUSTRY

Retail sales in the U.S. (total retail sales include the categories of gasoline, automobiles, andfood service, as well as merchandise) totaled an estimated $4.345 trillion in 2010. The totalamount of sales for the U.S. Retail Industry (including food service and automotive) was $4.13

trillion. [Source: U.S. Census Bureau ( 2009)]

CONTRIBUTION OF RETAIL IN GDP

Approximately 7.9percent of total U.S. GDP comes from retailing .

This was the 2nd consecutive annual decline for the retail industry, both an effect and cause ofthe U.S. economic recession overall. Most major multi-store retail chains had sales declines inthe first part of 2009, but saw improvements toward the end of that year, and the upward trendhas continued into 2011.

Retail sales in the U.S. rose marginally in December as well as for the year 2010. Adjusted

retail and food services sales rose 0.6 percent in December to $380.9 billion from the previousmonth and 7.9 percent from the same period last year. Total sales for the year were up 6.6percent from 2009. Retail trade sales rose 0.7 percent during the month, while retail sales,


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excluding sales of motor vehicles and parts, were up 0.5 percent. December's US retail salesand consumer price reports suggest that real consumption growth accelerated to 3.8%annualised in the fourth quarter, from 2.4% in the third

RETAIL SALES OF MAJOR PRODUCTS

The Home/ Family care/ Home Durables(cleaning products, cookware, cutlery, etc.) constitute24 percent of total sales, Wellness(weight loss products, vitamins, etc.) constitute 23percent ,Personal Care(cosmetics, jewelry, skin care, etc.) constitute 19.4 percent, Services constitute19.2 percent, Clothing & Accessories constitute 11percent, Leisure/ Educational(books, videos,toys, etc.) constitute 3 percent.

[Source: 2010 Global Powers of Retailing report, published each year by Deloitte ToucheTohmatsu and STORES Magazine]

THE WORLD'S LARGEST RETAILERS


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Of the worlds 10 largest retail companies in the world, five of them are from the US and fiveare from Europe. These top ten global retailers had combined sales of $1.15 trillion in 2009,according to international consulting group.

Not only does the retail industry dominate other industries in the U.S., the retail companies thatare based in the U.S. also dominate on the global retailing stage. Nearly one-third of the 250

largest retail organizations in the world are based in the United States. Based on revenuefigures, five of the top ten retail companies in the world are U.S. retail companies. Thirty of theworld's largest retailers are from the U.S., and 82 of the retailers on the entire Global Powerslist of 250 retailers call the U.S. their home.

The U.S. companies ranked on this worlds largest list vary somewhat from the annual Fortune500 list, which is generally focused on publicly traded U.S. retail companies. Included in thisglobal ranking are privately-held companies, as well as government retail operations.

[Source: Deloitte]

THE LARGEST U.S. RETAIL INDUSTRY COMPANIES


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Although the vast majority of all retail stores in the U.S. (approximately 90%) are single-storebusinesses, however these single-store businesses account for substantially less than half of allretail sales. 85 percent constitutes organised retail. Most goods are sold to Consumers throughretailers. Retail Companies Based in the U.S. Ranked Among the 250 Largest Retailers In theWorld.

APPAREL POWER PLAYERS


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DRUG STORES POWER PLAYERS

DEPARTMENT STORES POWER PLAYERS

SMALL FORMAT VALUE POWER PLAYERS

LARGE FORMAT POWER PLAYERS

HOME IMPROVEMENT POWER PLAYERS

Wal-Mart is by far the largest retailer (andcompany) in the U.S. and the world interms of revenue generated. With fiscalyear 2010 sales of $405 billion It has morethan 8,986 retail units and operates under55 different banners in 15 countries.Despite the downturn in the US, Walmartstill grew in 2008 with financial turmoilseeing struggling consumers substitute highend retail with the relatively less expensivealternatives offered by Wal-Mart.It is

recognised as the fifth largest retailer in theUnited States and the ninth largest in theworld.

Home Depot

Home Depot is the largest homeimprovement retailer in the US, ahead ofrival Lowes, and the fourth largest general

retailer.


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RESTAURANTS POWER PLAYERS

SUPERMARKET POWER PLAYERS

ELECTRONICS & ENTERTAINMENT POWER PLAYERS

OFFICE SUPPLY POWER PLAYERS

Kroger

Kroger is an American retail supermarket chainfounded by Bernard Kroger in 1883 in Ohio.

The nation's largest grocer ,operates more than2,400 food stores under two dozen bannernames, including City Market, Dillons, FredMeyer, and Ralphs.

It also owns convenience stores (Turkey Hill,QuikStop), 374 jewellery boutiques (Littman,Barclay), and department stores (Fred Meyer).

Kroger pioneered the first supermarketsurrounded on all four sides by parking lots inthe 1930s


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RETAIL JOB GROWTH

Despite the economic downturn which caused a drop in total retail employment in 2010, manyindividual sectors within retailing saw employment growth. Almost one of every fiveemployees in the United States works in retail and food service and drinking places. Out of allsectors in the U.S. economy, retail and food service and drinking places employ the most

workers. Radio, TV, & other electronics stores experienced 3.8 percent employment growth(12,000 jobs added) and women's clothing stores experienced 2.2 percent employment growth(6,000 jobs added).

RETAIL INDUSTRY TRENDS

Frugality and conscious consuming are expected to continue in U.S. retailing in 2011 due tocontinuing high unemployment and underemployment. Green products and services, greenfacilities, and green activism are being heavily publicized by U.S. retailers, and stronglysupported by U.S. consumers.

Cautious optimism leads to slight increase in spending Channel blurring occurs Private label sees strong growth Internet retailing continues to grow Economic recovery will lead to growth in retailing

Retail technology - particularly the integration of internet shopping with mobile phone devices -will be the hottest trend in the U.S. retail industry in 2011.


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