The top 250 global retailers generated aggregated revenues of USD 4.5 trillion in 2014 despite a decline in oil prices, representing a steady growth of 4.3 per cent compared to the previous year, according to a new report.
The Deloitte report titled 'Global Powers of Retailing 2016: Navigating the new digital divide' said it was a positive signal for the industry which had not so long ago witnessed revenue declines in 2011.
However, the picture is uneven with retailers in North America and Africa/Middle East enjoying revenue growth, while those in Asia Pacific, Europe and Latin America enduring declining growth.
"Slower economic growth in several markets, lower inflation, falling oil prices and a stronger US dollar were among dynamics which generated mixed fortunes for retailers across different regions," said Ira Kalish, Deloitte Global Chief Economist.
"For US retailers the strength of the US dollar meant increased purchasing power for US consumers, helped also by better economic growth and improving employment conditions in the US," Kalish said.
He said Chinese economy on the other hand slowed considerably during this time, mainly due to weak exports and weakening investment.
"Despite plummeting oil prices and its impact on the economies in the Gulf, one of the region's retailers, the Lulu Group not only achieved revenue growth but it also managed to retain its position as one of the fastest growing retailers in the world," said Herve Ballantyne, partner and Consumer & Industrial Products leader at Deloitte Middle East.
The emerging markets have done a lot to immunize their economies from the effects of the global economic crisis in 1998.
Governments reduced deficits and 'Debt to GDP' levels, accumulated vast foreign currency reserves and also improved the solvency and transparency of their financial institutions.
"The end result has been substantial slowdown in growth in many countries. On the other hand, since the past year, oil prices have plummeted which has resulted in disinflationary pressure in many countries thereby boosting consumer spending in major markets. For the world's leading retailers, the weakness of oil process has mostly been good news," said Abbas Ali Mirza, Audit Partner, Deloitte Middle East.
