Competitive Landscape of Retail Industry

In a competitive landscape, players in the retail industry must compete in many ways. In this article, we will learn about the competitive landscape of the retail industry. Discover the major players in the retail industry and their company profile. Learn more about the top 5 industry players. Competition is tough, especially for small businesses. Knowing how companies compare to the competition is important for your business strategy.

The top 10 retailers have a large geographic footprint and these top retailers operate in an average of 16.7 countries. Most of them face difficult economic conditions in local markets and they are constantly looking for overseas growth opportunities in countries with stronger economic conditions and growth prospects. Below are the top five retailers in the world:

1. Wal-Mart Stores Inc (USA):

Wal-Mart Stores, Inc., branded as Walmart, is an American multinational retail company that operates chains of discount department stores and warehouse stores. Wal-Mart was established in the 1960s. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. Its headquarters are in Bentonville, Arkansas.

It provided goods at very low prices by buying in bulk and developing very efficient logistics. Wal-Mart operates a global chain of discount department stores, supermarkets and hypermarkets. In the late 1980s and early 1990s, the company grew from a regional giant to a national giant. By 1988 Wal-Mart was the most profitable retailer in the United States, and by 1990 it had become the largest in terms of revenue. Over the years, Wal-Mart grew exponentially and became the largest retailer in the world.

Walmart has 8,500 stores in 15 countries, under 55 different names. The company operates as Walmart in the United States, including all 50 states and Puerto Rico. It operates in Mexico as Walmex, in the United Kingdom as Asda, in Japan as Seiyu and in India as Best Price. It has wholly owned operations in Argentina, Brazil and Canada.

In 2010, Wal-Mart achieved a turnover of 421.849 billion dollars. Its operating profit was $25.542 billion and its total assets were $180.663 billion. Wal-Mart accounted for more than 10% of total Top 250 Global Retailer revenue, acquired Massmart in South Africa in June 2011, its biggest deal in more than a decade. This will allow Wal-Mart to widen its lead over its top 10 rivals in the future. Wal-Mart employs approximately 2,100,000 people.

2. Carrefour Group (France):

Carrefour means “crossroads” and “public square” in French. Carrefour SA is a French multinational headquartered in Boulogne Billancourt, France, in Greater Paris. Carrefour opened its first store in Annecy, France in 1957. The company grew from a single store to a chain of stores, merging with Promodè in 1999. Carrefour stores include supermarkets, hypermarkets and discount stores and proximity. It is one of the largest hypermarket chains in the world (with 1,452 hypermarkets at the end of 2011 of distribution, the second largest group in terms of turnover, and the second in profit (after Wal-Mart).

Carrefour mainly operates in Europe, Argentina, Brazil, China, Dominican Republic, United Arab Emirates, Qatar and Saudi Arabia, but also has stores in North Africa and other parts of Asia, most stores being smaller in size than a hypermarket or even a supermarket. In 2010, Carrefour achieved a turnover of 125.185 billion dollars and an operating profit of 2.55 billion dollars. It employs more than 471,000 people.

3. Tesco PLC (UK)

Tesco PLC (LSE: TSCO) is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is an international food and general merchandising chain based in Great Britain. It is the second largest retailer in the world measured by profits (after Wal-Mart) and the third largest retailer in the world measured by revenue (after Walmart and Carrefour).

Its products include groceries, consumer goods, financial services and telecommunications. Tesco has diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture and software; financial services; telecommunications and Internet services; rental of DVDs; and music downloads. It has stores in 14 countries in Asia, Europe and North America and is the grocery market leader in the United Kingdom (where it has a market share of around 30%), in Malaysia, the Republic of Ireland and Thailand. In 2010, Tesco had a turnover of 97.204 billion US dollars. Its operating profit for that period was $6.078 billion. It had a market capitalization of around £24.4 billion as of January 15, 2012. Tesco employs around 472,000 people.

The Kroger Company is an American retailer founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported revenue of $96.8 billion in fiscal 2012. It is the nation’s largest grocery chain, its second-largest general retailer by revenue and the fourth largest retailer in the world (surpassing Germany’s Metro AG in 2012), according to Deloitte. In 2010, Kroger operated, directly or through its subsidiaries, 3,574 stores.

Kroger’s corporate headquarters are in downtown Cincinnati. It maintains markets in 31 states, with store formats including supermarkets, hypermarkets, department stores, convenience stores and mall jewelry stores. Kroger-branded grocery stores are located throughout the Midwest and Southern United States. Kroger is also parent to several “banner” chains, such as Ralphs in California.

Kroger is a union company. Seventy-five percent of Kroger employees are represented by the United Food and Commercial Workers (UFCW).

Metro AG, otherwise known as Metro Group, is a German diversified global retail and wholesale/cash and carry group based in Düsseldorf, Germany. Metro AG was established in 1964. It has the largest market share in its home market and is one of the most globalized retail and wholesale companies. It is the fifth largest retailer in the world in terms of turnover (after Wal-Mart, Carrefour, Tesco and Kroger).

It has establishments in Europe, Asia and Africa, including supermarkets, hypermarkets and electronics, home appliance and department stores. Metro AG had a turnover of 93.45 billion dollars in 2010. In 2012, the Metro group operated stores in 25 European countries, 5 Asian countries and 1 in Africa. Its operating profit for the same year was $3.07 billion and it employed 283,280 people.