Emke Group/Lulu Group has jumped an impressive 14 places in 2014 from previous year on the list of world’s top 250 retailers compiled by Deloitte in conjunction with Stores Media.

The 2015 Global Powers of Retailing, Embracing Innovation report rated Emke Group/Lulu Group as one of the best examples of Middle East retailers faring well globally.

Despite the recent fall in oil prices, there is little evidence at this stage that it will negatively impact consumer spending in the Middle East, said Herve Ballantyne, partner and consumer business leader at Deloitte Middle East. “Although European grocers might be slowing expansion, no such problems are affecting those in the Middle East,” he said.

The top 250 global retailers generated revenue of $4.4 trillion in fiscal year 2013, each with an average size of more than $17.4 billion, according to the report.

This year’s report explores innovative trends in retail, forecasts for 2015 as well as the strategies retailers are utilizing to address the disruptive changes impacting the sector.  

The 250 largest retailers around the world are analysed based on their financial performance, geographic region, product sector and e-commerce activity. Revenue growth for the top 250 retailers, which began declining in 2011, continued to slow in the fiscal year 2013.

According to the report, sales-weighted, currency-adjusted retail revenue was 4.1 per cent for the top 250, following a 4.9 per cent gain in fiscal year 2012. While growth continued to decline, nearly 80 per cent of the top 250 (199 companies) posted an increase in retail revenue in fiscal year 2013.

“The sluggish global economy in 2014 left many consumers financially constrained and retail sales under pressure. Thus, the prosperity of the global retail sector in 2015 will very much depend on the economic stability of several of the largest economies.

Top retail trends in 2015

• Travel retailing –International tourism is set to continue to rise above expectations despite continuing global geopolitical and economic challenges. The expanding middle classes of emerging markets are traveling to the world’s capitals and boosting retail sales.  In 2015, retailers are expected to increasingly cater to high-spending travellers, especially emerging market tourists to drive growth.

• Mobile retailing – Mobile retailing is expected to continue to grow aggressively. Retailers will need to respond by offering free in-store Wi-Fi and mobile-friendly retail websites optimised for different kinds of personal devices.  Privacy and security will become increasingly important as trust, transparency and protecting customer information will be critical in retaining loyalty as mobile retailing becomes the norm.  

• Faster retailing - Speed continues to remain an important trend in retail. This includes: “fast fashion” (getting runway styles to the stores as soon as possible); limited-time-only products and flash sales to drive urgency and immediate purchase; pop-up establishments to quickly get products and services to market and build buzz; and self-service check-out and kiosks to reduce or eliminate waiting. In 2015, retailing is forecast to get even faster to meet consumers’ desires. Millennials will be driving much of this as they are the largest generation, with a lot of spending power, and carry a lot of influence. They prefer fast response and immediate gratification, and retailers will cater to that.

• Experience retailing - Retailing is no longer just about the product, but the experience. Retailers will continue to explore innovative ways to enhance the buying experience for their customers through social media campaigns, festivals, fashion shows and interactive displays.

• Innovative retailing- The retail industry will continue to be disrupted by new technologies and innovative competition. More retailers are likely to adopt innovative practices, embrace technology and use it in creative ways.   

“The retail sector is going through a significant period of change. The speed of innovation and the disruption being felt across the industry will continue, as the demands of customers continue to increase. To succeed in this environment, retailers will need to respond quickly to threats and opportunities ensuring they are quick to implement innovations of their own. This will require a connecting strategy, capabilities, and specific initiatives, guided by the insights provided by market data,” added Ballantyne. - TradeArabia News Service