The number one global retailer is…
Two U.S. companies hold the top spots in an annual listing of the top 50 global retailers.
Walmart came in No. 1 in the National Retail Federation's 2022 Top 50 Global Retailers ranking. The list, compiled by Kantar Retail, is a compilation of the 50 most impactful retailers in the world based on their operations at the start of 2021. The report cited Walmart's significant investments in omnichannel marketplaces, in-store services and fulfillment models.
Holding on to the same rankings as 2021 were Amazon, which came in second, followed By Germany's Schwarz Group and Aldi. Rounding out the top five was Costco, which rose from number six the previous year.
Other ranking changes in the top 10 include number 13 Alibaba (down from number five in 2021), number six Ahold Delhaize (up from number seven), number seven Carrefour (up from number eight, number eight IKEA (up from number nine), number nine Seven & I (up from number 13), and number 10 The Home Depot (up from number 15). See the full list here.
Specifically, the NRF cited Walmart for divesting from weak international markets, most recently South Africa, while building up its omnichannel marketplace and in-store services. Leveraging its logistics network, it now provides shoppers with a broad range of ways to buy across all platforms.
[Read more: Walmart boosts competition with Amazon for third-party sales]
According to the NRF, this has created new opportunities with higher-income shoppers that would normally gravitate to Amazon. And Walmart has worked to expand access to online shopping for lower-income groups in the U.S. and Mexico with value-priced internet access and new financial programs.
Meanwhile, the NRF cited Amazon for pushing into new markets in Latin America and Asia, as well as for expanding its in-house logistics to meet shopper expectations for rapid and predictable fulfillment.
In addition, the NRF says continued strong results from its Amazon Web Services (AWS) cloud group “provide a predictable base for capitalization and cash flow to expand new products and services.” Amazon also received credit for expanding its physical store network with its new Amazon Fresh banner, along with existing Amazon Go stores, both of which use the retailer’s touchless “Just Walk Out” payment system.
[Read more: Amazon opens high-tech grocery store with ‘Just Walk Out’]
A look at broader retail trends
The ranking also included some analysis of the global retail industry from Kantar. Department store chains in all countries are expected to continue to lose overall share, despite the sector experiencing a burst of sales in summer 2021 when most countries relaxed COVID-19 restrictions.
Looking ahead to 2022 and beyond, Kantar expects investment in store networks will return, with a large number of remodels and a limited number of new store openings. In-store digital technology like smart shelving and frictionless purchases are expected to be a major competitive differentiator.
Omnichannel access is expanding to lower-income groups, while greater use of small autonomous vehicles for fulfillment at a time of limited staffing is already evident in cities and on campuses. Next year’s evaluations will be based more on how well new formats address changed shopper needs and the success of global procurement strategies.
“The second year of the global pandemic challenged global retail in 2021 as it did in 2020,” said David Marcotte, senior VP, global insights and technology at Kantar. “And, just as in 2020, global retail emerged with far more revenue and profit as it managed changes in shopper needs and routines.”
Kantar’s ranking methodology uses a system in which points are given to retailers based on their domestic and international retail revenues. To qualify for the rankings, retailers must have a direct investment in at least three countries.