Walmart and Amazon continue to be the world’s largest retailers, but discounters such as Lidl, Aldi and Costco are emerging as intimidating challengers. Kantar and American trade federation NRF have compiled a list of the world’s largest retailers – including one Belgian and three Dutch companies.
Discounters on the rise
2021 was another eventful year for the retail industry: the Covid pandemic raged on, but even more significant than its impact on in-store sales were the effects of global supply chain disruptions. Stock shortages became an issue towards the end of the year, and caused even more disruptions than Covid. Those who are heavily dependent on imports and who could not meet the resurgent consumer demand quickly enough were the ones who suffered. Therefore, the big players increased their lead last year and achieved substantially higher sales and profits by responding swiftly to changing consumer needs.
Walmart remains by far the largest retailer worldwide, both in its home market and internationally. Their new focus on online marketplace models served the American population well. Amazon profited enormously from the Covid pandemic and made second place more secure. Discounters Schwarz Group (Lidl) and Costco, which entered new markets, ranked third and fourth in terms of sales.
Ahold Delhaize benefits
So far, Kantar’s list is very similar to Deloitte’s, which we reported on in February. However, the lists differ considerably further down, as Kantar only included retailers that invest significantly in at least three markets – and as Kantar ranks the companies using a points system of its own rather than (merely) turnover. That makes a difference: Costco (number three in terms of turnover) dropped to five, and Aldi (with the sixth-largest turnover) rose to three. Also benefiting from the points system: Dutch Ahold Delhaize and Swedish Ikea.
Remarkable: Alibaba did not make the top ten this year. That is due to the interventions of the Chinese government, which imposed strict new rules on the technology giants and had Alibaba split off its financial division. Tencent and JD.com also had to review their business strategies. Kantar and NRF expect Chinese players to return to growth in 2022 and to compete for a place in the top ten again.
Blurring boundaries of retail
The researchers also identified a growing concern for compilers of such lists: the boundaries of retailers and their sales are becoming increasingly difficult to measure as they continue to cross channel boundaries in an effort to offer new products and services, according to Kantar. For example, Rakuten, Mercado Libre and eBay are innovating far beyond their initial business models.
In 2022, NRF and Kantar expect retailers to start investing more in their physical stores again, with numerous refurbishments, a limited number of new store openings and, above all, much more digital technology on the shop floor. For example, smart shelves and till-free shopping. Latin America and Africa may also start to ride the omnichannel wave.
The top ten retailers worldwide (based on points awarded):
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Walmart (US: 395.6p; revenue: 538.15 billion dollars)
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Amazon (US: 335.6p; revenue: 330.20 billion dollars)
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Schwarz Group (Germany: 238.3p; revenue: 158.58 billion dollars)
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Aldi (Germany: 215.8p; revenue: 134.67 billion dollars)
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Costco (US: 163.7p; revenue: 187.17 billion dollars)
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Ahold Delhaize (the Netherlands: 151.1p; revenue: 93.20 billion dollars)
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Carrefour (France: 145.3p; revenue: 105.42 billion dollars)
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Ikea (Sweden: 101.2p; revenue: 52.21 billion dollars)
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Seven & I (Japan: 94.6p; revenue: 97.08 billion dollars)
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The Home Depot (US: 85.2p; revenue: 142.27 billion dollars)
The four Benelux companies listed in the global ranking:
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6. Ahold Delhaize (the Netherlands: 151.1p; revenue: 93.20 billion dollars)
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24. Spar International (the Netherlands: 41.4p; revenue: 20.70 billion dollars)
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36. Euronics International (the Netherlands: 26.3p; revenue: 13.16 billion dollars)
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44. Louis Delhaize (Belgium: 16.8p; revenue: 26.02 billion dollars)
