As a group, apparel and accessories retailers were the fastest-growing and most profitable product sector in 2014 – as they were in 2013, according to a report by global audit and consulting firm Deloitte.
Composite retail revenue growth increased 6.7 per cent while the group's composite net profit margin reached 8.1 percent, the report titled Global Powers of Retailing – navigating The New Digital Divide, said. Although these companies are relatively small in size, with average retail revenue of $9.1 billion, they are nevertheless the most global. Eighty-five per cent (41 of the 48 Top 250 apparel and accessories retailers) operated internationally in 2014. On average, retailers in this product sector have expanded their operations to almost 26 countries around the globe and generated nearly one-third of their revenue outside their home countries.
International expansion – including stand-alone stores, department store concessions and e-commerce – continued to be an important driver of sales and profits for many apparel, footwear and accessories retailers in 2014. Specialty retailers, including Primark, H&M, Fast Retailing, and Inditex, are rapidly expanding their fashion empires abroad. In addition, acquisitions boosted the sector's top-line performance, the report said.
The Global Powers of Retailing analyzes retail performance by primary retail product sector as well as by geography. Four sectors are used for analysis: apparel and accessories, fast-moving consumer goods, hardlines and leisure goods, and diversified. A company is assigned to one of three specific product sectors if at least half of its retail revenue is derived from that broadly defined product category. If none of the three specific product sectors accounts for at least 50 per cent of a company's retail revenue, it is considered to be diversified. (SH)
Fibre2Fashion News Desk – India