Two UAE firms among world's 250 most powerful retailers

Globally, top 250 retailers achieved $4.4 trillion revenues with a composite net profit of 3.2 per cent.

Three retail giants from the GCC - including two from the UAE - have made it to the world's top 250 most powerful retailers.
International consultancy Deloitte's 'Global Power of Retailing 2018, Transformative Change, reinvigorated commerce', has ranked the UAE-based EMKE Group/Lulu Group International and Majid Al Futtaim Holding as number 141 and 151 respectively, among the powerful retail brands.
Lulu Group - which operates hypermarkets and superstores across 10 countries - posted $6.9 billion (Dh47.34 billion) revenues in 2016, achieving a compound annual growth rate of 10.2 per cent.
The UAE-headquartered Lulu Group controls 32 per cent of the retail market share with 131 stores across GCC, Egypt, India, Indonesia and Malaysia.
While Majid Al Futtaim Holding had retail revenues of $6.5 billion while group revenues reached $8.14 billion. Operating 120 supermarkets, 90 hypermarkets across 15 territories, it posted group net income of $758 million with CAGR retail revenue of eight per cent, reveals Deloitte report. 
While Saudi Arabia's Savola Group, which operates Panda brand, was ranked 244th most retailer with $3.67 billion revenues. With presence in three countries, it achieved 6.7 per cent CAGR in 2016.
The world's top 250 retailers have more than doubled their market in the Middle East and Africa from 0.6 per cent in 2006 to 1.6 per cent, reveals the study.
"Retailers from China, Japan and the rest of Asia-Pacific are gaining ground, along with some players from emerging markets in Africa and the Middle East," it said.
According to Deloitte's report, the Middle East also is an attractive destination for retailers.
"Together, the Africa/Middle East region's 10.9 percent growth rate and 4.8 per cent net profit margin composite in 2016 were among the highest of the five geographic regions. Top 250 retailers based in the region have a large geographic footprint. All 10 companies operated internationally in 2016 in an average of 11.2 countries. Nearly 35 per cent of their combined retail revenue was generated outside their home countries," said the report.
Globally, top 250 retailers achieved $4.4 trillion revenues with a composite net profit of 3.2 per cent.
The report ranked only those retailers among 250 ranking who recorded at least $3.6 billion in revenues.
The French retail giant Carrefour - which is operated by Majid Al Futtaim in the region - was ranked 9th most powerful retailer in the world with $84.13 billion in retail revenues. 
The top 10 list is dominated by the US giants with Wal-Mart Stores topping followed by Costco Wholesale Corp., The Kroger Co., Schwarz Group, Walgreens Boots Alliance, Amazon.com, The Home Depot, Aldi Group, Carrefour and CVS Health Corp.
Other powerful retail brands that have a presence in the UAE include Ikea, Apple, H&M, LVMH, Macy's, The Gap, Nordstrom, M&S, Toys 'R' Us, Nike and Woolworths among others.
waheedabbas@khaleejtimes.com