The retail industry is a cornerstone of global economies, contributing $5.3 trillion annually to the U.S. GDP alone. As the largest private-sector employer in the United States, it supports 55 million jobs, which constitutes one in every four American jobs. However, this sector faces significant challenges due to increased e-commerce penetration and inflation, impacting an industry known for its slim profit margins.
A recent analysis by the National Retail Federation highlights the top retail companies worldwide based on their domestic revenue. This data, collected over a 52-week period ending in early 2024, provides insight into the leading players in the retail market.
Methodology
To qualify for the rankings, companies must be involved in consumer goods resale accessible to the public and operate directly in at least three countries. Both public and private companies were considered, and all revenue figures were converted to U.S. dollars.
Top 10 Global Retailers by Domestic Sales
Here are the leading retailers based on their domestic sales in 2023:
- 1 Walmart $532.3B 85% 🇺🇸 U.S.
- 2 Amazon.com $250.0B 70% 🇺🇸 U.S.
- 3 Costco $175.4B 75% 🇺🇸 U.S.
- 4 The Home Depot $142.0B 94% 🇺🇸 U.S.
- 5 Walgreens Boots Alliance $105.1B 89% 🇺🇸 U.S.
- 6 Alibaba $91.5B 97% 🇨🇳 China
- 7 Apple $70.9B 87% 🇺🇸 U.S.
- 8 Aeon $64.3B 93% 🇯🇵 Japan
- 9 Schwarz Group $56.5B 32% 🇩🇪 Germany
- 10 Rewe $55.5B 75% 🇩🇪 Germany
Analysis
Walmart leads the global retail market with a staggering $532.3 billion in domestic revenue, surpassing the combined domestic revenue of Amazon and Costco. Walmart’s success is largely attributed to its pricing strategy, offering goods approximately 25% cheaper than traditional retailers. Groceries, which comprise more than half of Walmart’s total sales, attract a diverse customer base, including a growing number of higher-income shoppers seeking lower grocery prices.
Amazon, the world’s second-largest retailer, dominates nearly 40% of online retail sales in the U.S. The company’s workforce has almost doubled from 800,000 in 2019 to over 1.5 million in 2023. Despite its dominance in e-commerce, Amazon’s foray into online grocery sales has struggled against stiff competition and operational challenges.
China’s Alibaba, another e-commerce giant, generates 97% of its revenue domestically through its platforms Taobao and Tmall. The company has been focusing on international expansion, now capable of delivering products to 11 markets, including the U.S., within five days.
These insights into the top retail companies underline the significant role they play in the global economy and the diverse strategies they employ to maintain their market positions amidst evolving consumer behaviors and economic pressures.
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