GLOBAL RETAILING: ASIA, US & EUROPE
RETAILING IN US
INTRODUCTION The US retail industry is flurished retail giants. Retail, with more than 14 million employees in America alone, is one of the largest industries in the world by number of businesses and number of employees. The retail industry is the second largest industry in the U.S. The retail industry responsible for two-thirds of the U.S GDP. Responsible for approximately 12% of all US employment, U.S. retail companies have also established a presence on every continent. US alone contributes 20% of absolute sales growth. The majority of the revenue in the retail industry is generated by companies that run retail "chains". The biggest retailer in the world is Wal-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, and food service, as well as merchandise) totaled an estimated $4.345 trillion in 2010. The total amount 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 of the U.S. economic recession overall. Most major multi-store retail chains had sales declines in the first part of 2009, but saw improvements toward the end of that year, and the upward trend has 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 previous month and 7.9 percent from the same period last year. Total sales for the year were up 6.6 percent from 2009. Retail trade sales rose 0.7 percent during the month, while retail sales,
excluding sales of motor vehicles and parts, were up 0.5 percent. December's US retail sales and 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.) constitute 24 percent of total sales, Wellness(weight loss products, vitamins, etc.) constitute 23percent , Personal Care(cosmetics, jewelry, skin care, etc.) constitute 19.4 percent, Services constitute 19.2 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 Touche Tohmatsu and STORES Magazine] THE WORLD'S LARGEST RETAILERS
Of the worlds 10 largest retail companies in the world, five of them are from the US and five are 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 that are 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 revenue figures, five of the top ten retail companies in the world are U.S. retail companies. Thirty of the world's largest retailers are from the U.S., and 82 of the retailers on the entire Global Powers list of 250 retailers call the U.S. their home. The U.S. companies ranked on this worlds largest list vary somewhat from the annual Fortune 500 list, which is generally focused on publicly traded U.S. retail companies. Included in this global ranking are privately-held companies, as well as government retail operations. [Source: Deloitte]
THE LARGEST U.S. RETAIL INDUSTRY COMPANIES
Although the vast majority of all retail stores in the U.S. (approximately 90%) are single-store businesses, however these single-store businesses account for substantially less than half of all retail sales. 85 percent constitutes organised retail. Most goods are sold to Consumers through retailers. Retail Companies Based in the U.S. Ranked Among the 250 Largest Retailers In the World.
APPAREL POWER PLAYERS
DRUG STORES POWER PLAYERS
DEPARTMENT STORES POWER PLAYERS
Wal-Mart is by far the largest retailer (and company) in the U.S. and the world in terms of revenue generated. With fiscal year 2010 sales of $405 billion It has more than 8,986 retail units and operates under 55 different banners in 15 countries. Despite the downturn in the US, Walmart still grew in 2008 with financial turmoil seeing struggling consumers substitute high end retail with the relatively less expensive alternatives offered by Wal-Mart.It is recognised as the fifth largest retailer in the United States and the ninth largest in the world. Home Depot
SMALL FORMAT VALUE POWER PLAYERS
Home Depot is the largest home improvement retailer in the US, ahead of rival Lowes, and the fourth largest general retailer. LARGE FORMAT POWER PLAYERS
HOME IMPROVEMENT POWER PLAYERS
RESTAURANTS POWER PLAYERS
Kroger
Kroger is an American retail supermarket chain founded by Bernard Kroger in 1883 in Ohio. The nation's largest grocer ,operates more than 2,400 food stores under two dozen banner names, including City Market, Dillons, Fred Meyer, and Ralphs. It also owns convenience stores (Turkey Hill, QuikStop), 374 jewellery boutiques (Littman, Barclay), and department stores (Fred Meyer). Kroger pioneered the first supermarket surrounded on all four sides by parking lots in the 1930s
SUPERMARKET POWER PLAYERS
ELECTRONICS & ENTERTAINMENT POWER PLAYERS
OFFICE SUPPLY POWER PLAYERS
RETAIL JOB GROWTH Despite the economic downturn which caused a drop in total retail employment in 2010, many individual sectors within retailing saw employment growth. Almost one of every five employees in the United States works in retail and food service and drinking places. Out of all sectors 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 to continuing high unemployment and underemployment. Green products and services, green facilities, and green activism are being heavily publicized by U.S. retailers, and strongly supported 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.
