Deloitte: ‘The retail customer expects sustainability’

According to Deloitte’s ‘Global Powers of Retail 2022’ report, more than half of retail customers demand sustainable products and services. While the report shows that the largest 250 retail companies generated $5.11 trillion in revenue in 2020, BİM United Mağazacılık A.Ş. and A101 took place.

Deloitte has released its ‘Global Powers of Retail 2022’ report. According to the report, the top 250 global retail companies generated $5.11 trillion in revenue in fiscal 2020, while the share of the top 250 listings of the top 10 retail companies in total revenue reached 34.6 percent. This rate was 32.7 percent the previous year.

According to the report, with the effect of the pandemic process, the sustainability expectation of consumers for retail companies has also increased. Deloitte Turkey Retail Leader Tolga Sirkecioğlu emphasized that the pandemic has irreversibly changed consumer behavior and shopping habits.

Sirkecioğlu said, “This change will also shape the shopping models of the future. There is a demand for transformation towards sustainability in companies from shareholders and investors as well as consumers. For this reason, it is extremely critical for retail companies to develop their strategies in line with the changing and evolving needs of consumers who want a better and sustainable future.

Highlights from the report are:

In October 2021, when the research was conducted, 55 percent of consumers stated that they had purchased a sustainable product or service in the last four weeks.

32 percent said that they purchased a product or service that was more expensive than its alternative.

19 percent waited longer than usual for the product or service to be delivered.

16 percent purchased a used or recycled product.

16 percent accepted a low-quality product or service.

13 percent participated in a special process to eliminate their waste.

The sustainable product category that consumers shop for the most is food and beverages. According to the research, 42 percent of sustainable shopping is in this category, followed by household goods with 25 percent.

The birth of the ‘responsible consumer’

According to Deloitte’s research, the emergence of the concept of ‘responsible consumer’ was effective behind the companies becoming more concerned with environmental and social problems. According to the research, especially Millennial and Z generation consumers show more interest in sustainability and expect the companies they interact with to act in this direction.

The impact of e-commerce

The pandemic has caused the top 250 global retail companies to grow faster in 2020 than in 2019.

Experts highlight strong growth in consumers shifting to online shopping.

Consumers, who spent more time at home due to the pandemic, increased their food and beverage purchases instead of consuming them outside.

Likewise, the increase in time spent at home has benefited retail companies operating in sectors such as furniture and decoration.

BİM and A101 from Turkey are on the list

Two companies from Turkey took place among the top 250 global retail companies this year. BİM United Mağazacılık A.Ş., which rose 15 places and ranked 137th in the list, increased its revenue by 4.7 percent to 7 billion 891 million dollars.

A101, the other Turkish company on the list, rose 13 places with a revenue of 4 billion 536 million dollars and took the 231st place.

Both companies were among the top 50 companies with the highest compound growth rate in the 2015-2020 financial years.

Fast moving consumer goods rank first

Companies operating in the field of fast moving consumer goods (FMCG) were among the top 250 companies (66.4 percent) this year.

The minimum income level of the listed companies was 4.1 billion dollars, while their average size increased to 20.4 billion dollars.

Europe was the region with the highest number of companies in the list with 90 companies, while North America had the highest share with 48.4 percent in terms of revenue.

A Chinese firm entered the list of Top 10 Retail Companies for the first time this year.

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