The results of the review Global Powers of Retailing 2020 were surprisingly positive, as Russian retailers were on the list the fastest growing in the world. The top 50 leaders by revenue growth in 2013-2018 fiscal years included 4 domestic companies. Not looking at it, relatively high profitability, based on gross numbers, the leaders of the Russian retail is still not among the world's hegemons — from the largest Corporation — X5 — only 42-e a place on sales. It is worth to note that the total capitalization of hundreds of billions of dollars with no real income and a negative cash flow can become a real indicator of an approaching financial crisis.
Recent ranking by Deloitte showed no significant changes in the list of the world's retailers, as the top ten included three changes: on the line above rose Amazon now included the three largest retailers of German Schwarz Group, the world's largest American drugstore chain Walgreens Boots Alliance.
The leader of The retail sector remains Walmart, whose total capitalization 2018 amounted to USD 514 billion. To better understand the scale, the share of Walmart made up approximately 13% of the total sales of the 250 largest retailers in the world. But if you look at the success of Walmart from the outside, the average for the last five years sales have grown only by 1.4% per year. But even so, hardly anyone in the foreseeable future is able to disturb the dominance of the American Corporation.
We can say that online retailers are among the world leaders in retail are quite modest, as only 9 of the 250 companies have no physical stores. Take the same example of Amazon, which since 2013 has increased sales on average 18% per year, and the Chinese JD.com — 44%, although sales are conducted exclusively on the Internet. Experts say that electronic retailers are unable to fully control the market, even in countries with full Internet coverage because physical retail has a strong demand from buyers around the world.
X5 Retail Group, Lenta, Magnit and M. Video are the Russian companies that show good growth rates. In the review of the Global Powers of Retailing 2020, they occupied 11-e, 12-e, 26-e and 29-th place. The average revenue growth was detected at X5 and “Tape” made it on 23,4%, M. Video — 16,8%, while the “Magnet” — 16%. Please note that the last time such growth was observed in companies from China and Turkey. Analyst CC “Finam” Alexey Korenev said, “if in developed countries retail trade has successfully evolved over the centuries and had in the progress of apparent failures, we have from 1917 to 1990, the volume of retail retailers grew significantly. And restored in the nineties we started almost from scratch with empty shelves, half-savage flea markets, kiosks selling “all at once”. In other words, after a significant lag, we have a hard time to catch up gone far West”.
Next, Alex continued, “the situation is similar with our other national chains — “Magnet”, “Tape”, “Dixie” and so Yes, we are rapidly catching up the backlog, despite a certain stagnation in consumer demand triggered by the decline in real disposable income. But still in absolute terms behind the world leaders not just in times and order.”