Deloitte has recently released its 22nd edition of Global Powers of Retailing 2019. While identifying the 250 large retail companies, the Edition also looks at the 50 fastest- growing retailers across the world. The calculation of the Fastest 50 list is based on compound annual revenue growth over the five-year period from FY2012 to FY2017.
RIL reached at 6th Position
With beating the giants like Nike and Amazon, Mukesh Ambani’s Reliance Industries Ltd. has successfully positioned itself at number 6 in the list and has become the world’s 6th fastest growing retailer. The US-based company Albertsons topped the list, followed by the Chinese retail companies VipShop shop and JD.com. While America’s Wayfair secured the fourth position, Turkey’s A101 Yeni Magazacilik AS was placed at fifth position.
RIL has doubled its revenue
Reliance Industries Limited was a new entrant in the Fastest 50 list FY2016 and continued its rapid growth by nearly doubling its retail revenue in the Financial year 2017. According to RIL’s financial report, their retail segment, in comparison to RS 18,798 crores corresponding to previous year, saw its growth in terms of revenue to RS 35,577 crores in this fiscal year.
Along with this, the Indian conglomerate was also featured in the Deloitte’s list of 250 large global retail companies and secured 94th position. Reliance’s retail segment performance was accelerated by its major growth in grocery, consumer electronics, and fashion and lifestyle businesses. The Reliance Industries is the only Indian company to hold a position on both the lists. The US gargantuan Walmart retained its position of the first place on the list.
Main reason behind RIL growth
Entry of Reliance Industries in the telecom sector has already resulted in a major transformation of that sector and after this Reliance is all set to enter the e-commerce space. Mr. Ambani has already cleared his intentions at the Vibrant Gujarat Global summit that they are planning to introduce an online retail platform. Initially, the platform will be for Gujarat retailers and shopkeepers. While the company giving tough a fight to giants like Amazon and Flipkart, it will be an equally challenging situation for Reliance as they have to establish themselves in the e-commerce sector where Amazon, Flipkart, Paytm already have an established stronghold for themselves.
The 22nd edition also reported the changes in the global economy. The report also suggested that Europe, China, and Japan are facing decelerated growth and major markets are witnessing ‘accelerated inflation’.
“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,” said the Deloitte Global Chief Economist Ira Kalish.
News source: Financial express, Global Powers Retailing 2019 report by Deloitte and Times now.
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