Retail supreme

 

WoolworthsInside Retail Magazine has re-shaped the Top 30 list this year (first published in Inside Retail Magazine’s April/May 2013 edition) and, in fact, has expanded it from the previously reported Top 25.

In previous years, the list has focused on sales in Australia and New Zealand but the 2013 rankings have allowed international sales to be included, a change that has seen Billabong International enter the Top 30 list for the first time.

Despite difficult trading conditions in calendar 2012, most of the retailers in the Top 30 rankings have achieved sales growth, albeit in some cases with modest increases.

The Top 30 list is predictably headed by the Woolworths food and liquor colossus with sales of $38.47 billion.

The list is compiled on a moving annual turnover basis, assessing half year sales for the 2013 financial year as well as 2012 full financial year results.

The list excludes marketing banner groups such as IGA supermarkets, Mitre 10 and pharmacy banners such as Amcal and Guardian because stores are independently owned but includes some hybrid retail businesses that have corporate and franchise stores.

While Woolworths’ arch rival, Coles, has won praise for percentage growth and its turnaround strategy continues to build sales momentum, it is still more than $10 billion behind Woolworths, clocking annual revenues of $27.23 billion.

Top 30 retailers 3

The Wesfarmers discount department store chains, Target and Kmart, have also surrendered ground to their Woolworths stable rival, Big W.

Big W is ranked seventh on the Inside Retail Magazine Top 30 Retailers list, with sales of $4.26 billion, one place ahead of Kmart at number eight with $4.13 billion in sales, and Target at nine with $3.75 billion.

Wesfarmers currently betters Woolworths in two business divisions, Coles fuel and convenience and Bunnings.

Coles fuel and convenience network is ranked third on the Top 30 list, with sales of $7.63 billion, after achieving modest growth in calendar 2012.

Woolworths fuel and convenience business saw a sales decline in the same period and is ranked fifth on the Top 30 list, with annual revenues of $6.67 billion.

The Masters Home Improvement chain, owned by joint venture partners, Woolworths and Lowe’s, is building sales momentum as new stores are rolled out nationally.

The fledgling big box hardware and home retailer, which opened its first store in September 2011, currently has sales of $1.05 billion and enters the Inside Retail Magazine Top 30 Retailers list at 25.

With an aggressive store development plan and with stronger brand awareness, Masters is expected to move up the rankings quickly with sales likely to double in the next two years.

While Masters Home Improvement has achieved impressive sales growth in its first 18 months of trading and has up to 115 sites secured in its store development plan, Bunnings remains a force to be reckoned with in the hardware category.

Bunnings currently has sales of $7.4 billion and is protecting its business with an aggressive new store rollout plan of its own that aims to counter the Masters Home Improvement challenge.

Bunnings ranks fourth on the Top 30 list this year.

With sales of $6.1 billion, Harvey Norman comes in at number six ahead of the discount department store chains.

Harvey Norman has seen a slight decline in sales in the past 12 months, but chairman, Gerry Harvey, says there are signs of improvement in the early months of 2013.

JB Hi-Fi is at 10 posting sales of $3.4 billion and, despite modest sales growth in the past 12 months, is optimistic about calendar 2013 and beyond as it expands categories in its stores, including whitegoods.

At 11 is Aldi, with estimated revenues of $3.2 billion. The German supermarket player is expected to continue climbing the rankings in years to come, as it continues expansion on the eastern seaboard as well as the new territories of Western Australia and South Australia.

With sales of $3.2 billion, Myer is ranked 12th on the Top 30 list. Myer has achieved a modest increase in sales in the past year, while its department store rival, David Jones, has seen sales dip, coming in at 18 off the back of $1.85 billion.

Boosted by its acquisition of the Mobil fuel and convenience store network, 7-Eleven has boosted its annual sales to $3.3 billion to rank 13th ahead of Australia Post in 14th position with retail network sales of $3 billion.

Australia Post is included in the rankings for the first time in 2013.

The Good Guys electrical chain arrives at 15. It has sales of $2.1 billion and remains on the market for interested buyers, boasting a price tag of around $1 billion.

A $700 million offer for the Good Guys by JB Hi-Fi is understood to have been rejected, but may yet be revisited considering JB Hi-Fi’s plans to expand into whitegoods.

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The Chemist Warehouse Group, which includes pharmacy, vitamin, and beauty chains, has annual sales of around $2 billion at 16.

Super Retail Group has lifted annual sales to $1.9 billion following its acquisition of the Rebel and Amart sport businesses, pulling in at 17.

McDonald’s, which has a mix of corporate stores and franchises, is ranked 19 with sales of $1.5 billion, ahead of Officeworks at 20, which enjoys annual revenues of $1.5 billion and Billabong at 21, which has much publicised annual sales of $1.5 billion.

Despite a fall in sales in the past year, Reece Plumbing is in 22nd place with annual sales now running at $1.5 billion while the South Australian-based fuel, convenience and restaurant operator, Peregrine Corporation is ranked 23rd and possessing annual revenues of $1.2 billion.

Under new ownership and following a substantial restructure that included store closures, Dick Smith has seen annual sales tumbled to around $1.1 billion and is this year ranked 24 in the Top 30 Retailers list.

After Masters Home Improvement at 25, multi-brand retailer, BB Retail Capital, is positioned at 26th with sales of $1 billion while Terry White Chemists stands at 27 with sales of around $993 million.

The Spotlight Group, which includes the Anaconda stores, is takes the 28th spot with sales of $941 million and Repco follows at 29 with revenues of circa $920 million.

Rounding out the Inside Retail Magazine Top 30 Retailers list is Melbourne-based Ritchies IGA supermarkets clocking sales of $840 million.

Dropping out of the Top 30 list from last year is Just Group which currently has sales of $833.9 million and more significantly, Retail Adventures, the discount retailer trading under the Crazy Clark’s, Sam’s Warehouse, and Go-Lo brands.

Retail Adventures was placed in the hands of administrators in 2012 as the company seeks to restructure.

Owner, Jan Cameron, repurchased the business from the administrators in January and slashing the store network.

It currently has sales of around $600 million, down from the halcyon days of the discount retailer when it was generating close to $1 billion in annual revenues.

This story originally appeared in Inside Retail Magazine. The August/September issue, featuring exclusive coverage of the 2013 Westfield World Retail Study Tour is available now. For more information, click here.

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    Anon posted on September 16, 2013

    Isn't Chemist Warehouse technicllay meant to have each of its pharmacies owned by individuals as in accordance with pharmacy law - just like Amcal and Guardian? If the list allows having a combination of company-owned and franchise stores then wouldn't you include Priceline/Priceline Pharmacyand Terry White who turn over abou $1.5bn and $1bn respectively? reply

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