Woolworths and Wesfarmers have made it to the top five of Asia Pacific retailers, according to Euromonitor’s latest report.
Based on its retailing data, the market research firm ranks the top 500 retailers from 14 key economies across Asia Pacific in terms of total sales, number of outlets, sales area and sales per square metres.
Japan’s AEON Group topped the list, followed by convenience giant 7-Eleven (also Japan). Woolworths supermarkets placed third followed by its arch-rival Coles, then Family Mart (Japan).
The top ten Aussies were dominated by the big two, with German discount chain Aldi and South African operator, Woolworths Holdings also in the mix.
Commenting on the Australian market, Julia Illera, senior research analyst said cautious discretionary spending had hindered retail growth, with retailing in Australia increasing by 3 per cent in current value terms in 2016, which was in line with the growth observed during the review period.
“Although growth was positive, it was slightly slower than in 2015 as Australians remained cautious about their discretionary spending during the year due to low income growth,” said Illera. “Online sales continue to grow faster than store-based retailing internet retailing in Australia began to reach a relatively steady state; however, the channel continued to outperform store-based retailing in 2016.
“The growing importance of having a retail presence across multiple channels had encouraged retailers to invest heavily in multi-channel strategies, with a particular focus on their digital presence, as consumers continued to favour the convenience offered by internet retailing.”
Illera said Wesfarmers was the largest retailer in Australia in 2016, leading across multiple retailing categories, with its value growth largely driven by the strong performance of the company in categories such as home and garden specialist retailers, stationery/ office supply stores, mass merchandisers and forecourt retailers, in which it was ranked as the number one player in terms of value share in 2016.
Looking ahead, Illera, said retailing in Australia is expected to increase at a value CAGR of 3 per cent at constant 2016 prices over the forecast period.
“This will be largely driven by home and garden specialist retailers and Internet retailing, which are expected to continue to record strong growth thanks to a growing demand for new houses and by the fast adoption of new technologies and online services, respectively.”
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