Thursday, February 29, 2024

How far will Amazon go? | Journalism

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Maria Gill
Maria Gill
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Admittedly, in order to create gigantic businesses, Americans are very good at it. It’s amazing when we look at the ranking of the 250 most important retailers on the planet, by sales volume.

Marie Yves FournierMarie Yves Fournier

For the past fifteen years, I have always been waiting for a newspaper to be published The Global Powers of Retail, A document prepared by the accounting firm Deloitte. Find out which is the fastest growing retail giant in the world.

What I like the most is comparing the new panels to the ones that were around 10 or 15 years ago. The exercise allows us to discover consumption habits in the United States and elsewhere on the planet. And which retailers were smarter than the rest.

Zero suspense again this year: Walmart is clearly number one.

I always wondered if I would ever live old enough to see Sam Walton’s empire be removed one day. Imagine: it generated $ 524 billion in revenue in the last fiscal year * (650 billion treasure).

That’s 3.3 times more than the second largest retailer: Amazon, with “only” $ 158 billion (196 billion treasures)!

However, given the data in the other columns, I would probably have more confidence in Jeff Bezos to surprise me.

First, the company got a rank in Top 10. She is the only one who has succeeded in this feat in moving from one place to another within this chosen club, a feat she has repeated every year since her entry into Top 10 In 2015.

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And guess which retailer was eliminated from the second tier on the platform? Costco. Roughly $ 6 billion US dollars separate them. A favorite business among Quebecers, Costco has lost the place it had occupied for six years.

Hence, Amazon revenue growth is of particular significance. On the Walmart side, it was 1.9%, while on the Amazon side it was 13%. Big gap. If these rhythms continue, it will only be a matter of time before Amazon fires Walmart.

Finally, Amazon also surpasses Walmart in terms of profitability, giving it more leeway to invest in its future growth.

* * *

Besides, have you seen the latest discoveries by Amazon to diversify its activities? The company announced that it is preparing to open a hairdressing salon in London. With real people cutting their hair, but with a bunch of techniques selling shampoos and brushes.

Image provided by Amazon

Amazon announced that it is preparing to open a hairdressing salon in London. With real people cutting their hair, but with a bunch of techniques selling shampoos and brushes.

“There is literally no aspect of our lives that Amazon does not target. If anyone still believes Amazon is a retailer, they are late to publish the news. [traduction libre] Doug Stevens, a well-known expert on retail trends and best-selling author, commented on LinkedIn.

With such unexpected strategies – remember the acquisition of Whole Foods Markets organic supermarkets in 2017 – an efficient website and sophisticated logistics just as massive as Amazon has been able to advance to the top.

To say that 20 years ago, Amazon was ranked 157e Position in Deloitte’s ranking …

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Since 10 years ? At 35e Rank, with sales of 24.5 billion USD. That of Loblaw (Provigo / Maxi), including all its activities, was higher (US $ 27 billion).

Times have changed.

In all, six Canadian retailers are included in the ranking: Loblaw, Empire (IGA), Metro, Alimentation Couche-Tard, Canadian Tire, and Save-On-Foods.

* * *

It is clear that US retailers dominate the rankings, with 7 out of the top ten.

In the Top 250There are 74 of them, in other words, 30% of the largest retailers in the world have head offices in one country. However, the dominance of the Americans is slowly collapsing. 10 years ago, the ranking counted 84 brands based in the United States.

The newcomers mainly come from Asia. On the list of the 10 fastest growing retailers in five years, Couang, a South Korean Uber Eats company, took first place. The second place went to a supermarket chain from India, Reliance Retail.

Let’s go back to the United States, the target’s home. Because seeing that name is very high on the international list – at 11e Rank – almost confusing. How could such a successful business endure the most heartbreaking failure in Canadian retail history? Such a bunch of bugs still seemed silly to me.

But it does illustrate how difficult it can be to win over even the most demanding consumers. Being part of this arrangement year after year is an achievement in itself.

* To compare retailers, Deloitte uses data for the most recent fiscal year ending before June 30, 2020

Read the Deloitte study

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