Top Mideast retailers’ revenue grows 13.5pc
Dubai, February 10, 2014
Middle Eastern retailers on the world’s largest 250 list reached a revenue growth of 13.5 per cent last year, said a report.
The 2014 Global Powers of Retailing report from Deloitte, in conjunction with Stores Media, pointed out that retailers in the Middle East and Africa region realised a 7.2 per cent return on assets and strong growth which continued to yield above-average profitability.
The revenues of the top 250 retailers reached $4.3 trillion in the last fiscal year, ended June, where their average size exceeded $17 billion, despite tough economic conditions, said the report.
James Babb, clients and industries leader at Deloitte Middle East, said: “The global retail industry got off to a difficult start in the last year. However, it is encouraging to see that the world’s leading retailers were able to plough on through the difficult period to reap the rewards of increased consumer spend.
“This has served to provide a much needed boost to global revenues with nearly 80 per cent of the top 250 retailers posting an increase in retail revenue. Interestingly, for the first time this year’s report shows that some of the top retailers undertook a series of sell-offs in order to remain profitable and ride out the tough trading period,” Babb added.
The world’s 10 largest retailers grew more slowly than the top 250 during the year with retail revenue growth of 4.2 per cent, as compared to 4.9 per cent in the previous year, said the report.
The retailers in emerging markets accounted for more than half (26) of the world’s 50 fastest-growing retailers in fiscal year including all four Russian top 250 companies, six of seven Middle East and Africa retailers, and six of nine based in Latin America.
“Over recent years, the developing economies have emerged as one of the most promising retail markets,” said Babb.
“Retailers are successfully adapting their strategies to adequately cater to the growing middle-class consumers in emerging economies where there is strong demand for consumer goods, ranging from cars and electronics to personal care products,” he said.
European retailers faced another year of tough trading as the region fell back into recession when austerity measures, put in place to cope with the Eurozone credit crisis, resulted in low growth and high unemployment in many European countries, the report added. - TradeArabia News Service