The world's top 250 retailers saw significant annual revenue growth during the two fiscal years from July 1, 2020 to June 30, 2021 (blue bar) and July 1, 2021 to June 30, 2022 (green bar). Among the world's top 250 retailers, retail revenue ranged from a minimum of $45 billion to a maximum of $72.7 billion, with an average of $22.6 billion.
In 2022, the global environment was challenged by rapidly rising inflation, soaring commodity prices, tighter monetary policy, and severe supply chain disruptions. Deloitte data shows that between 2018 and 2021, the annual revenue growth rate of the world's top 250 retailers increased from 4.1% to 8.5% over the 5-year period, with a significant increase in the growth rate from 2020 to 2021. In addition, between fiscal years 2018 and 2021, the annual net profit growth rate of the world's top 250 retailers increased by only 1.3% over the five-year period.
In fiscal 2021, 8.8% of the world's top 250 retailers had annual revenues of more than $50 billion, accounting for 49.7% of the rankings' total annual revenues, 38% of retailers had annual revenues of $10 billion to $50 billion, 47.6% of retailers had annual revenues of $5 billion to $10 billion, and only 5.6% had annual revenues of less than $5 billion.
In fiscal year 2021, the top 10 retailers in the world are shown in the chart below, with Walmart, Amazon and Costco ranking in the top 3, with no change from the previous fiscal year, firmly in the top 3 in the retail industry.
Among them, Walmart surpassed Amazon, with e-commerce sales increasing by 12.8%, and this year, Walmart will continue to make efforts in e-commerce business:
· E-commerce business
Walmart's e-commerce sales increased 12.8% in fiscal 2021, following a 63.5% increase from the previous year. With the gradual easing of epidemic prevention restrictions, consumers have gradually returned to physical retail channels, which has also affected the sales growth of e-commerce to a certain extent.
As of fiscal year 2021, Walmart currently operates more than 8,000 pickup points and 6,000 delivery locations. As part of its strategy to blend online and in-store shopping experiences, Walmart has maintained its investment in store renovations, including a $3.3 billion investment in store renovations in 2022.
Walmart's omnichannel capabilities and its reach to Gen Z and millennials led to the launch of Walmart Creator, a new content e-commerce platform that helps content creators get buyable products from retailers and earn commissions on the products sold, similar in concept to Douyin, a Chinese social media e-commerce platform. While the platform is currently in beta version, Walmart Creator is expected to be fully launched in 2023.
· Walmart DSV
It is not an exaggeration to say that Walmart's success is also inseparable from the contribution of the DSV account. What is a DSV account, we can analyze it from the various account types of Walmart:
MP, full name: Marketplace, also known as 3P, similar to Amazon SC account, the most common, third-party seller store, Walmart front desk display is Sold&by Seller. Marketplace stores don't have an account manager. At the same time, the performance appraisal is strict, and if the store operation is not standardized or there are performance problems, it is easy to be banned.
The DSV account is similar to Amazon's VC account: it can only be registered by invitation and belongs to the current blue ocean. Wal-Mart front desk shows Sold &shipped by walmart.com. The actual carrier delivery is shipped by the seller from the overseas warehouse. DSV sellers only need to act as suppliers and prepare the goods. Wal-Mart is officially responsible for the rest of the sales, after-sales, logistics and other issues, which can save a lot of time, energy and cost for export.
Walmart 1P (1st Party) is the Owned account, that is, the upgraded version of the DSV account, after reaching a certain sales volume, Walmart DSV can be upgraded to a 1P account, the front desk displays Sold & by Walmart, the buyer places a PO order, the seller ships the goods to the Walmart warehouse, and the order is operated and sold by Walmart and shipped to the buyer's FBW. This kind of seller has higher requirements and a larger volume, in other words, you can earn more!
Therefore, whether from the perspective of the global economic development environment or the development status of Wal-Mart itself, Wal-Mart is still a market worthy of investment or layout for Chinese enterprises, especially Wal-Mart DSV, as a supplier account of Wal-Mart, itself has multiple advantages, if you also want to quickly expand overseas markets, you may wish to consider Wal-Mart DSV.