Mukesh Ambani’s retail empire has not only emerged as an unstoppable force in India but also on the global frontier!
According to Deloitte, Reliance Retail has been ranked as the second fastest-growing retailer in the entire world as of 2021, down from the topmost rank secured in previous years, as per CAGR of retail revenue Reliance generated between 2014 and 2019.
The company clocked 55.1% CAGR between 2014 and 2019, trailing behind South Korean based retailer Coupang Corp, which is growing with a jaw dropping 102.6% CAGR.
What is even more interesting is the fact that Reliance Retail is the only Indian retailer that has secured a place in the Deloitte’s list of “World’s Top 50 Fastest Growing Retailers” released recently.
The list was part of an overall report Titled Global Powers of Retailing 2021 where the retailers were ranked based on their individual/group revenue.
In Deloitte’s overall list, Reliance Retail Ltd. currently holds the 53rd position, with $20.3 billion in revenue, maintaining a net profit margin of 3.9% – a considerable improvement from earlier when it was ranked 56th.
The top position in the overall list is held by the U.S. giant Walmart Inc, followed by Amazon Inc. and Costco Wholesale Corporation which held the second and third position, respectively.
7 out of the top 10 retailers of the world are based out of U.S. while one is from U.K. (Tesco PLC at the 10th rank). The other U.S. retail giants included in the top 10 are The Kroger Co at 5th rank, Walgreens Boots Alliance Inc at the 6th rank and CVS Health Corporation, which has been ranked 9th.
Aldi Einkauf GmbH & Co. oHG and Aldi International Services GmbH & Co. oHG from Germany has been placed in the 8th position.
As for India, Reliance Retail is the only homegrown retail player that made it to the global list of 250 retailers. And as mentioned earlier, this is not the first time for the Ambani-owned entity.
Reliance Retail has been consecutively featured for the 4th time in Deloitte’s Global Powers of Retailing and World’s Fastest Retailers.
Deloitte, in a statement about the same, said that Reliance Retail, leader of Fastest Growing 50 Retailers 2020, dropped to second place in 2021. Reliance Retail recorded a whopping 41.8% YoY growth driven primarily by a 13.1% increase in the number of retail outlets in the consumer electronics, fashion and grocery space in FY20.
E-commerce is Reliance Retail’s second-biggest growth driver, both via B2C and B2B channels, according to Deloitte.
As it is already known, the company partnered up with the Facebook-owned instant messaging app WhatsApp to further accelerate their digital commerce business via JioMart and support numerous small kiranas throughout the country.
Reliance Retail acquired 29 stores of Shri Kannan Departmental store at the end of FY19 and in August 2020 announced its plan to acquire Future Group retail arm for $3.4 billion, a deal which is stuck in limbo as of now.
Thus, it is well understood that Reliance Retail will surely be a force to reckon with in the near future, especially when the COVID-19 slump ends and the RIL-Future deal is approved. Going forward, Ambani will very likely be crowned the ‘Retail King of India’ and will pose a serious threat to the likes of Amazon and Flipkart on the homefront. We will keep you updated on all future developments. Until then, stay tuned.