- What is Retail Globalisation?
- Who are the main global retailers?
- Top 10 Grocery Markets to 2014
- Global Retailing Outlook

What is Retail Globalisation?

Globalisation in the retail industry seeks to unlock sales opportunities in new markets through a mix of exportation of best practice and modification of existing models to suit local needs. In recent years major global retailers have shifted their focus towards strengthening their presence in existing markets ahead of broadening their operations into new ones, but continue to strive for greater differentiation from their competitors and take advantage of strong scaleable opportunities when they arise.
 

Who are the main global retailers?

By turnover, Walmart, Carrefour, Metro and Tesco rank as the major global grocery retailers. Together, the turnover of these four retailers was approximately $750 billion in the financial year 2009/10.

Walmart is by far the world’s largest grocery retailer with sales exceeding $400 billion in 2009/10, a sum greater than the combined turnover of Carrefour, Metro and Tesco and more than twice the value sold by the world’s second largest retailer, Carrefour.
 

IGD’s Grocery Turnover League

NB. Carrefour figures are inclusive of franchise operations
Source: IGD Retail Analysis Datacentre, calculated in 2010
 

Top 10 Grocery Markets to 2014

From a grocery retail perspective, the world’s centre of gravity is moving eastwards faster than previously expected. Unsurprisingly, the BRIC (Brazil, Russia, India, China) markets will offer the most significant growth prospects in the next 5 years for retailers and suppliers as the middle-class continues its ascension and gains greater access to modern retail outlets. With China set to become the world’s largest grocery retail market by 2014, overtaking the US, retailers and manufacturers with global operations should consider what impact such developments may have on their future investment strategy and that of their competitors.
 

Top 10 Grocery Markets to 2014

Source: IGD Research
 

Global Retailing Outlook

Several key features will shape global retailer trading strategies in 2010 and beyond. These include an increased focus on reducing stockholding, optimising ranging and maximising buying synergies. Beyond these, further retailer diversification into new growth areas is a key current trend.

While the underlying goal of delivering returns for shareholders through driving profitable growth remains consistent, there are a number of winning characteristics that retailers will need to demonstrate to succeed in 2010.

These include:

• Follow the customer - Easy to say, yet harder to deliver, this will be a key priority for 2010. Loyalty schemes, and the insight gained from these, will help retailers create strategic points of difference. The bar is undoubtedly being raised in this area and speed of response is critical.
   
• Depth over breadth - Scale and potential are key reference points when it comes to global expansion strategies. With a more rigorous initial assessment stage now entrenched in market entry strategies expect focus to be placed predominantly on only the very best long-term opportunities. The desire for a faster and more secure return on investment will also shape investment decisions.
   
• Developing sustainable business structures - Sustainable practices will increasingly become a pre-requisite for business success. Walmart’s sustainability index is gathering momentum, now in the process of being rolled out globally, while others such as Tesco, Carrefour and Metro are also taking steps to accelerate in this area.

	Related Items on IGD.com: Reports: - 10 for 2010 - Key Themes for Business Success in 2010 Factsheets: - Global Account Management - Grocery Retailing in India