Internationals ramp up

BY Australian Retailers Association
10 February 2016

Thirty nine of the world’s top 250 retailers now operate in Australia, up two from last year, according to Deloitte’s 2016 Global Powers of Retailing report, which identifies the 250 largest retailers globally by revenue.

While new global retailers look to Australian shores, those already here continue to expand their operations. Capitalising on the strong demand for household goods, Inditex brought another of its brands, Zara Home, to Australia in 2015, with further store roll outs planned for 2016. Meanwhile, Sephora and US retailer Williams-Sonoma are both set to continue their store expansion programs in 2016.

Dufry AG’s appearance in the list of 39 retailers operating in Australia resulted from its acquisition of The Nuance Group in 2014. The company operated the Sydney and Melbourne Airport concession stores during the period under the report’s review, although the Sydney Airport contract is now handled by German duty free operator Heinemann. Hermes has had an Australian presence for a number of years, but has broken into the Top 250 this year.

“The Australian market remains relatively unsaturated by the world’s largest retail brands compared to the US and European markets,” said David White, partner and national leader of Deloitte’s Retail, Wholesale and Distribution Group.

“In the last quarter of 2015 we learnt South African retailer Steinhoff had secured a deal with UK department store, Debenhams, to sell a selection of its private label apparel through its Harris Scarfe stores, and, in its first venture outside of South Africa, Mr Price has entered the Australian fast fashion market, branded MRP, with two stores in Melbourne,” said Mr White.

Woolworths and Wesfarmers continue to be the only two retailers representing Australia in the Top 250, at 21st and 23rd respectively.

While both retailers’ rankings have slipped for a second consecutive year from 18th and 22nd respectively, the decrease is primarily due to a nine percent depreciation in the Australia dollar against the US dollar, rather than a contraction in revenues.
With nearly half of the 39 Top 250 global retailers which operate in Australia based in the US, one country conspicuous by its absence is China. China has nine retailers in the Top 250, although none currently operate in Australia.

“Many of the products we buy are manufactured in China, however, unlike other sectors we have yet to see Chinese retailers entering the Australian market directly,” said White. “The growth in the middle classes in China is already prompting a surge in consumer demand and Chinese developed brands. It is only a matter of time before we see these emerging retailers expanding their businesses more globally, including Australia.

 

Top 250 global retailers currently operating in Australia

Name Global ranking 2015 Global ranking 2014 Country of origin FY2014 retail
revenue (US$m)
FY2014 group
revenue (US$m)
FY2014 group
net income (US$m)
# Countries
of operation
FY2014
Costco Wholesale Corporation 2 2 US 112,640 112,640 2,088 10
Aldi Einkauf GmbH & Co. oHG 7 8 Germany 86,470 86,470 n/a 17
Amazon.com, Inc. 12 15 US 70,080 88,988 (241) 14
Lowe's Companies, Inc. 18 20 US 56,223 56,223 2,698 4
Seven & i Holdings Co., Ltd. 19 17 Japan 53,839 56,162 1,698 18
Woolworths Limited 21 18 Australia 49,572 50,965 1,790 2
Wesfarmers Limited 23 22 Australia 48,095 52,287 2,043 2
The IKEA Group (INGKA Holding B.V.) 26 28 Netherlands 39,064 39,871 4,531 42
LVMH Moët Hennessy-
Louis Vuitton S.A.
39 41 France 26,006 40,727 8,115 80
Inditex, S.A. 45 44 Spain 23,780 23,780 3,295 90
H & M Hennes & Mauritz AB 47 49 Sweden 22,425 22,425 2,958 56
Apple Inc. / Apple Retail Stores 48 46 US 21,462 182,795 39,510 16
The Gap, Inc. 62 61 US 16,435 16,435 1,262 53
Fast Retailing Co., Ltd. 72 76 Japan 13,529 13,553 778 30
Otto (GmbH & Co KG) 76 76 Germany 12,843 16,662 -254 54
Toys "R" Us, Inc. 78 77 US 12,361 12,361 (288) 40
Staples, Inc. 85 81 US 11,585 22,492 135 12
L Brands, Inc. 89 93 US 11,454 11,454 1,042 60
Steinhoff International Holdings Ltd. 101 128 South Africa 10,240 11,814 1,152 29
GameStop Corp. 114 115 US 9,296 9,296 393 15
Office Depot, Inc. 129 158 US 8,050 16,096 -352 11
Foot Locker, Inc. 139 147 US 7,151 7,151 520 30
Kering S.A. 141 143 France 7,078 13,343 730 91
Compagnie Financière Richemont SA 142 132 Switzerland 6,902 13,217 1,694 56
Nike, Inc. / Direct to Consumer 152 170 US 6,634 30,601 3,273 63
Next plc 155 163 UK 6,527 6,548 1,039 74
Woolworths Holdings Limited 187 204 South Africa 4,950 4,950 273 14
Williams-Sonoma, Inc. 197 204 US 4,699 4,699 309 10
Forever 21, Inc. 200 224 US 4,500 4,500 n/a 47
Arcadia Group Limited 201 213 UK 4,474 4,474 142 48
Dufry AG 203 n/a Switzerland 4,446 4,592 93 60
Hermès International SCA 207 n/a France 4,387 5,475 1,062 48
Tiffany & Co. 225 244 US 4,015 4,250 484 26
Ralph Lauren Corporation 232 245 US 3,956 7,620 702 49
Lagardère Travel Retail SAS (formerly Lagardère Services SA) 233 242 France 3,944 5,070 n/a 33
PRADA Group 236 225 Italy 3,913 4,662 603 42
Abercrombie & Fitch Co. 242 219 US 3,744 3,744 52 23
Coach, Inc. 248 209 US 3,686 4,192 402 19
Groupe Vivarte 250 228 France 3,653 3,653 n/a 64
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Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association representing Australia’s $310 billion sector, which employs more than 1.2 million people. As the retail industry’s peak representative body, the ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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