Wesfarmers and Woolworths have remained at the helm of Australia’s top 1000 companies, according to IBISWorld data.
Business analysts at IBISWorld today revealed the 2017 ranking of companies, which offers insight into the corporate landscape in Australia.
“The firms on IBISWorld’s 2017 Top 1000 list account for $1.94 trillion in revenue, or approximately 28 per cent of all trade in Australia,” said Jason Aravanis, senior industry analyst at IBISWorld.
“Approximately one-third of companies on the list reported lower revenue for the year, with total revenue for the list declining by 2.0 per cent since IBISWorld’s 2016 Top 1000 companies list.”
Although total revenue across the 2017 list has fallen, this loss has been concentrated amongst a small number of large firms. Notable companies that generated lower revenue include Westpac, Rio Tinto, ANZ, NAB, and Caltex Australia.
In contrast, JB Hi-Fi, BHP, CIMIC Group and other major companies expanded revenue over the year. Overall, the 2017 top 1000 companies’ performance was mixed. For example, 52 per cent of companies on the 2017 list improved profitability.
According to IBISWorld, the growing trend towards bargain hunting has negatively affected the Consumer Goods Retailing industry, with consumers now more informed about purchases and the value of the products they buy. The industry’s revenue declined in 2016-17, as lower household discretionary income led to a cutback in household expenditure.
“Despite the overall decline in industry revenue, the industry’s major players, Wesfarmers and Woolworths, were able to grow their revenue as consumers sought out cheap prices at these large establishments.
“These large firms have been able to succeed in a difficult operating environment due to their economies of scale, which have enabled them to gain market share from smaller competitors,” said Aravanis.
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