Thirty nine of the world’s top 250 retailers now operate in Australia, up two from last year, according to Deloitte’s 2016 Global Powers of Retailing report, which identifies the 250 largest retailers globally by revenue.
While new global retailers look to Australian shores, those already here continue to expand their operations. Capitalising on the strong demand for household goods, Inditex brought another of its brands, Zara Home, to Australia in 2015, with further store roll outs planned for 2016. Meanwhile, Sephora and US retailer Williams-Sonoma are both set to continue their store expansion programs in 2016.
Dufry AG’s appearance in the list of 39 retailers operating in Australia resulted from its acquisition of The Nuance Group in 2014. The company operated the Sydney and Melbourne Airport concession stores during the period under the report’s review, although the Sydney Airport contract is now handled by German duty free operator Heinemann. Hermes has had an Australian presence for a number of years, but has broken into the Top 250 this year.
“The Australian market remains relatively unsaturated by the world’s largest retail brands compared to the US and European markets,” said David White, partner and national leader of Deloitte’s Retail, Wholesale and Distribution Group.
“In the last quarter of 2015 we learnt South African retailer Steinhoff had secured a deal with UK department store, Debenhams, to sell a selection of its private label apparel through its Harris Scarfe stores, and, in its first venture outside of South Africa, Mr Price has entered the Australian fast fashion market, branded MRP, with two stores in Melbourne,” said Mr White.
Woolworths and Wesfarmers continue to be the only two retailers representing Australia in the Top 250, at 21st and 23rd respectively.
While both retailers’ rankings have slipped for a second consecutive year from 18th and 22nd respectively, the decrease is primarily due to a nine percent depreciation in the Australia dollar against the US dollar, rather than a contraction in revenues.
With nearly half of the 39 Top 250 global retailers which operate in Australia based in the US, one country conspicuous by its absence is China. China has nine retailers in the Top 250, although none currently operate in Australia.
“Many of the products we buy are manufactured in China, however, unlike other sectors we have yet to see Chinese retailers entering the Australian market directly,” said White. “The growth in the middle classes in China is already prompting a surge in consumer demand and Chinese developed brands. It is only a matter of time before we see these emerging retailers expanding their businesses more globally, including Australia.
Top 250 global retailers currently operating in Australia
|Name||Global ranking 2015||Global ranking 2014||Country of origin||FY2014 retail
net income (US$m)
|Costco Wholesale Corporation||2||2||US||112,640||112,640||2,088||10|
|Aldi Einkauf GmbH & Co. oHG||7||8||Germany||86,470||86,470||n/a||17|
|Lowe’s Companies, Inc.||18||20||US||56,223||56,223||2,698||4|
|Seven & i Holdings Co., Ltd.||19||17||Japan||53,839||56,162||1,698||18|
|The IKEA Group (INGKA Holding B.V.)||26||28||Netherlands||39,064||39,871||4,531||42|
|LVMH Moët Hennessy-
Louis Vuitton S.A.
|H & M Hennes & Mauritz AB||47||49||Sweden||22,425||22,425||2,958||56|
|Apple Inc. / Apple Retail Stores||48||46||US||21,462||182,795||39,510||16|
|The Gap, Inc.||62||61||US||16,435||16,435||1,262||53|
|Fast Retailing Co., Ltd.||72||76||Japan||13,529||13,553||778||30|
|Otto (GmbH & Co KG)||76||76||Germany||12,843||16,662||-254||54|
|Toys “R” Us, Inc.||78||77||US||12,361||12,361||(288)||40|
|L Brands, Inc.||89||93||US||11,454||11,454||1,042||60|
|Steinhoff International Holdings Ltd.||101||128||South Africa||10,240||11,814||1,152||29|
|Office Depot, Inc.||129||158||US||8,050||16,096||-352||11|
|Foot Locker, Inc.||139||147||US||7,151||7,151||520||30|
|Compagnie Financière Richemont SA||142||132||Switzerland||6,902||13,217||1,694||56|
|Nike, Inc. / Direct to Consumer||152||170||US||6,634||30,601||3,273||63|
|Woolworths Holdings Limited||187||204||South Africa||4,950||4,950||273||14|
|Forever 21, Inc.||200||224||US||4,500||4,500||n/a||47|
|Arcadia Group Limited||201||213||UK||4,474||4,474||142||48|
|Hermès International SCA||207||n/a||France||4,387||5,475||1,062||48|
|Tiffany & Co.||225||244||US||4,015||4,250||484||26|
|Ralph Lauren Corporation||232||245||US||3,956||7,620||702||49|
|Lagardère Travel Retail SAS (formerly Lagardère Services SA)||233||242||France||3,944||5,070||n/a||33|
|Abercrombie & Fitch Co.||242||219||US||3,744||3,744||52||23|