The retail industry worldwide reaped the benefits of COVID-19 pandemic-induced circumstances as consumers were compelled to shift their shopping habits online, reveals GlobalData
Mumbai: Despite the challenges of high inflation rates, labour shortages, and disruptions in the supply chain, the top 25 publicly traded global retailers achieved a year-on-year (YoY) revenue growth of 7.1% to $3.5 trillion in 2022, GlobalData, a leading data and analytics company announced in a press release.
The retail industry worldwide reaped the benefits of COVID-19 pandemic-induced circumstances as consumers were compelled to shift their shopping habits online.
Ragupathy Jayaraman, business fundamentals analyst at GlobalData, said, “Home improvement and pharmaceutical retailers experienced notable advantages due to lockdown restrictions in 2022. Major online retailers such as Amazon, JD.com and Alibaba gained a compound annual growth rate CAGR of above 20% in revenue during 2018-2022.”
An analysis of GlobalData’s Company Reports Database reveals that of the top 25 publicly traded retailers, Alimentation Couche-Tard, Seven & i, Costco, and CVS Health posted double-digit YoY revenue growth.
Jayaraman added, “Alimentation Couche-Tard topped the list with a 37.3% revenue growth and 5.1% CAGR between 2018 and 2022, primarily driven by higher road transportation fuel selling price and positive impact of foreign exchange rates.”
Seven & i witnessed a 35% YoY growth in revenue. Costco’s expansion initiatives in the domestic markets helped the company record a 15.8% YoY revenue growth in 2022. CVS (Consumer Value Stores) Health witnessed a 10.4% YoY growth in revenue due to a significant increase in pharmacy claims, prescription and front store volumes, and higher sales of COVID-19 OTC test kits.
Other major gainers include Walmart, Amazon, JD.com, Kroger, Tesco and Albertsons, which all reported more than 5% growth in their revenue. In terms of operating profit, 65% of the top 25 retail companies reported more than 5% growth, with three companies (Sainsbury’s, Alibaba and JD.com) recording more than 50% growth.
In fiscal 2022, over 50% of the top 25 retail companies reported YoY growth in their net profits, with six retailers recording more than 30% growth.
“Retailers are in constant pursuit of redirecting their strategic investments and planning efforts due to various factors like changing consumer behaviour, investor sentiment and government regulations. Companies are focusing more on enhancing their digital supply chain management to expand and streamline business operations,” Jayaraman concluded.
