Woolworths, Wesfarmers among world's top-20 retailers

Georgia Wilkins
January 14, 2014
The Age
Woolworths and Wesfarmers have maintained their position in the top-20 highest grossing retailers in the world, with a combined revenue of more than $US100 billion ($111 billion)
A survey conducted by Deloitte ranks the two retailers at 15th and 19th respectively, behind world leaders Wal-Mart, Tesco and Costco.
The ranking takes Woolworths up two places and Wesfarmers down by one.
The survey is contained in a report into the global retail sector by the accounting company, and is based on 2012 revenue figures.
The report warns that Australian retailers could lose market share to foreign ones if they continue to establish a local presence.
Woolworth’s revenue for 2012 was $US58.6 billion, making it the biggest Australian retailer in the world, Deloitte says. This places it behind French multinational hypermarket chain Groupe Auchan and Japanese retailer Aeon Co.
Wesfarmers, owner of Coles, followed close behind, with revenues of $US54 billion. It ranks closely behind Amazon, which reported revenues of $US58.5 billion.
Deloitte Australia partner and head of national retail David White said the two Australian groups had boosted their global dominance despite concerns over soft retail conditions.
”Woolworths and Wesfarmers continue to maintain their impressive position in the top-20 global retailing powers,” he said.
He said the strength of the Australian economy compared with the rest of the world had helped increase Woolworths’ and Wesfarmers’ global standing.
“The global retail industry got off to a difficult start in the last fiscal year. However … the world’s leading retailers were able to plough on through the difficult period and continue to grow.”
Despite retailers reporting tough trading conditions during the 2012 period, nearly 80 per cent of the top companies posted an increase in revenue, Deloitte said.
”Interestingly, some of the largest retailers undertook a number of sell-offs and restructures in order to maintain profitability and help to ride out the tough trading period,” Mr White said.
Wal-Mart was the highest grossing retailer in the world, according to the report, with revenue of $469 billion.
Retail trade figures released last week by the Bureau of Statistics showed sales rose 0.7 per cent in November after gains of 0.5 per cent in October and 0.9 per cent in September. Discretionary retailing is now at a 1½-year high, with retail trade growing for seven straight months.
The early feedback from Australia’s retail suppliers, networks of middlemen, small business owners and some larger national retail brands is that the Christmas period was kind to the discretionary retail sector, and this year could be the first since the global financial crisis that sustainable growth returns to the industry.
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