Retail Industry Global Report — 2010 - Ascendant Capital Advisors

Thumbnail summaries of retail activities in various regions
1: North America
Brief description
Largest e-Commerce market with market value of more than 210 billion USD in 2009 combines a high ranking
in various areas: online population, percentage of online buyers, and per-capita online spending.
Key countries US and Canada
No. of listed retail companies 637
Top 5 domestic companies
based on revenues
Current scenario and outlook
2: Europe
Wal Mart Stores: $417 billion USD
McKesson Corp: $109.4 billion USD
Cardinal Health: $98.5 billion USD
CVS Caremark Corp: $98.2 billion USD
Kroger Co: $79.7 billion USD
- The base of Internet users in North America is 266 million users with 77.4 % penetration level, is expected to
continue to increase at a steady growth rate of 3% over the next five years (as per internet stats, leading to
good potential for online retail market. North America is the highest internet penetrated region in the world with
77.4% penetration rate followed by Oceania/Australia region with 61.3% penetration.
- Convenience, value, and selection will remain the primary drivers of growth. The online channel consistently
outpaces store growth and withstands shockwaves in the economy because consumers value its low and
transparent prices, convenience, and comprehensive assortment.
Brief description Second largest market for e-commerce sales with market value of nearly 200 billion USD in 2009.
Key countries UK, Germany, and France
No. of listed retail companies 762
Top 5 domestic companies
based on revenues
Current scenario and outlook
3: Latin America and the Caribbean
Carrefour SA: $122.1 billion USD
Metro AG: $92.4 billion USD
Tesco PLC: $90.4 billion USD
Ahold NV: $39.7 billion USD
Finatis: $38.3 billion USD
Brief description Emerging region
Key countries Brazil and Mexico
No. of listed retail companies 55
Top 5 domestic companies
based on revenues
Current scenario and outlook
4: Asia-Pacific, the Middle East and Africa
- The UK is the most mature market. France and Germany have much higher online sales and greater
e-commerce activity among Web users than Italy and Spain, where the internet still represents a fraction of
total retail volume. This can also be understood from the internet penetration rates which is higher in France
(68.9%) and Germany (79.1%) as compared to Italy (51.7%) & Spain (62.6%).
- These business-to-consumer (B2C) online sales in Europe are continuing to rise at double-digit growth rate of
11 percent because most European countries’ online retail sales are still relatively immature. Major growth in
Europe will come from the emerging markets of Southern, Central, and Eastern Europe.
- Meanwhile, those that are more mature like the UK are witnessing continued growth due to strong online value
proposition.
Grazziotin-PREF: $38.7 billion USD
Pao Acuca- Pref A: $15.3 billion USD
Cencosud SA: $10.6 billion USD
Falabella: $7.4 billion USD
Distribucion SER: $5.3 billion USD
Brief description Fastest growing region
Key countries China, South Korea and India
No. of listed retail companies 974
Top 5 domestic companies
based on revenues
Current scenario and outlook
- Growth is expected to be dominated by Brazil which is set to grow from an online spending perspective, as its
eCommerce landscape is better developed and per capita online spending tends to be on the higher side .
Seven & I holdings: $48.7 billion USD
Aeon Company Ltd: $48.6 billion USD
Woolworths Ltd: $45.4 billion USD
Wesfarmers Ltd: $45.4 billion USD
Yamada denki: $21.7 billion USD
- By 2014, Asia Pacific will include almost half of the world’s online population, with China taking the clear lead
with 42% of online users. Eventually, online spending in China will also continue to outpace across the region
rendering it a far larger e-Commerce market overall.
- Another two e-Commerce giants in the region, Japan and South Korea, is expected to witness increase in
online population by 1% to 2% on an average over the next five years. However, South Korea’s highly tenured
users are big spenders on digital goods.
- The Middle East’s slow internet growth, low credit card penetration and the lack of online stores has left the
region’s online retail industry lagging behind some of its global peers. However, it is gradually changing.
IMAP’s Retail Industry Global Report — 2010: Appendix A-xii