According to Global Powers of Retailing 2019, a new report from Deloitte Global, the FMCG sector continued to be the key driver of growth, for the Top 250 global retailers helping them achieve strong growth in FY2017 despite economic instability. Retail revenue increased by nearly 83.2% of the world’s 250 largest retailers (208 companies), generating aggregate revenue of $4.53 trillion in the fiscal year 2017.
While Europe had the highest number of Top 250 retailers, individual companies from other regions such as Amazon and Reliance did exceptionally well by climbing 2 and 95 spots respectively on the strength of exceptional retail growth. Amazon saw a retail growth of 25.3 %, while Reliance nearly doubled its retail revenue in FY2017.
Anil Talreja, Partner, Deloitte India said, "Despite the deceleration in the global economy, the consumer and investor sentiment continues to remain positive. Our global reports highlight, out of the top 10 companies on the top 250 list, eight were FMCG companies and that sector has been a strong reason for the India retail story. Additionally, mergers and acquisitions, especially in the e-commerce segment, continued as retailers tried to achieve better economies of scale and leverage consumer demand for e-commerce."
Dr. Ira Kalish, Deloitte Global Chief Economist, explained, "The global economy is currently at a turning point. Until early 2018, the global economy displayed strong growth. With inflation accelerating in major markets, governments making shifts in monetary and fiscal policies, and most of the emerging markets experiencing significant currency depreciation the global economy will slow down in the near future. For retailers, this change will mean slower consumer spending growth, higher consumer prices, and disrupted global supply chains."