Abstract
Globalisation of retail is not an emerging or imminent strategy, but a current focus for many retailers. Established retailers recognise that with domestic organic growth becoming more difficult to sustain in mature markets, expansion into new markets is a necessary step towards securing future profitability. According to Deloitte' s 2007 figures, retailers with operations in more than ten countries posted an average net profit margin of 4.7% compared with 3.1% for those in only one or two countries.
The timing of this report is critical in light of events in today' s market and the recognised importance to understand the potential of the global food retail market over the next five years. Retailers need to make sense of the economic situation impacting the western financial markets, appreciate the potential impact of rising food prices and general living costs, analyse the influence of growing fuel and commodity prices, and appreciate that consumer confidence appears to be falling.
The primary aim of this study is to understand the impact, pace and current status of globalisation in the food retail market and the potential impact this will have on the food, drink and retail industry over the next five years. The report also considers current trends influencing the globalisation of the food retail market.
The top 50 food retailers are identified and the top ten are analysed in terms of merger and acquisition (M&A) activity, market growth strategies, product development, relations with suppliers and branded manufacturers, and various other activities over the past 12-18 months.
Table of Contents
Chapter 1 - Introduction: Globalisation of the food retail market
- Economic downturn: The impact on the global food retail market
- The global price of food
Chapter 2 - The top five global retailers
- Wal-Mart
- Introduction
- Financial overview
- Divisions and formats
- Background
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Carrefour
- Introduction
- Financial overview
- Divisions and formats
- Background
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Tesco
- Introduction
- Financial overview
- Divisions and formats
- Background
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Metro AG
- Introduction
- Financial overview
- Divisions and formats
- Background
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
- Kroger
- Introduction
- Financial overview
- Divisions and formats
- Background
- SWOT analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
Chapter 3 - Mergers and acquisitions
- Recent merger and acquisition deals in the global market
- Recent Wal-Mart M&A/partnership deals
- Speculation and rumour
Chapter 4 - Rising stars and formats of the future
- Introduction
- Bharti
- X5.
- Stores of the future
- Multi-channel retailing
- Sustainable retailing on a global scale
- Shrinking stores
- Online retailing and Web 2.0
- Focus on supermarkets
- Focus on convenience stores
- Focus on discounters
- Focus on hypermarkets
Chapter 5 - Emerging markets
- Introduction
- Brazil
- Challenges
- Future forecasts
- Russia
- Focus on discounters in Russia
- Location, location, location
- Future forecasts
- India
- Focus on hypermarkets in India
- Challenges
- Future forecasts
- China
- Shanghai Bailian Group, aka ' The Great Wal-Mart of China'
- Challenges
- Future forecasts
Chapter 6 - Conclusions and future forecasts
- Global retail food market value forecasts
- The future for consolidated retail markets
- Power to the retailers
- Corporate social responsibility
- Enhancing the customer experience
List of tables
- Table 1: Top 50 global mass grocery retailers, 2006
- Table 2: Wal-Mart financial overview, 2006-2008 (US$m and %)
- Table 3: Carrefour, 2007 net sales by geography (EURm)
- Table 4: Carrefour total retail outlet numbers, 2007 (no of outlets)
- Table 5: Tesco Group, financial overview, 2007-2008 (GBPm)
- Table 6: Metro financial and operating overview, 2005-2007
- Table 7: Kroger financial overview, 2007 (US$bn)
- Table 8: Most active emerging retail markets, 2007 (%)
- Table 9: UK online food retail sector, estimated market shares, 2008 (%)
- Table 10: Brazil overall retail market value sales forecasts, 2006-2013 (US$bn and %)
- Table 11: Brazil grocery retail sales value forecasts, 2006-2013 (US$bn and %)
- Table 12: Russia' s top five discounters' market share by retail value, 2004-2006 (%)
- Table 13: Russia grocery retail market value forecasts, 2006-2013 (US$bn and %)
- Table 14: India' s top five hypermarket companies' market share by retail value, 2004-2006 (%)
- Table 15: India grocery retail market value forecasts, 2006-2013 (US$bn and %)
- Table 16: Top ten retailers in China by sales value, 2006
- Table 17: China grocery retail market value forecasts, 2006-2013 (US$tn and %)
- Table 18: Global grocery retail market value forecasts, 2006-2013 (US$tn)
- Table 19: Grocery retail market sales forecasts in France, Germany, Italy and the UK, 2006-2013 (EURbn)
