Growing numbers of consumers are choosing to do their shopping online, and many brick-and-mortar retailers are failing to adapt to the shifting retail landscape. Once retail giants RadioShack and Payless ShoeSource are among the most recent to file for bankruptcy, and many others are hurriedly closing unprofitable stores as foot traffic dwindles.
Some retailers, however, seem to have used the changing marketplace as an opportunity for growth. 24/7 Wall St. reviewed the world’s 25 fastest growing retailers with data from the National Retail Federation. The companies, from the NRF’s report on the 250 largest companies worldwide, are ranked on their retail revenue annual growth rate between 2010 and 2015.
Whether due to rapid e-commerce sales growth or large acquisitions — the two main forces driving the fastest growing retailers — these companies share the ability to adapt and grow in the quickly changing retail landscape.
With an average retail revenue growth rate of 184.6% each year between 2010 and 2015, China-based Vipshop Holdings Limited is the fastest growing retailer in the world. Vipshop is a non-store clothing company, that is, all sales happen outside of a physical retail facility. There are three companies on this list that operate without any physical storefront.
Eight of the 25 fastest growing retailers worldwide are based in the United States, the most of any country. Following the United States are Russia and China with four and three retailers respectively.
Albertson’s Companies, Inc. was the fastest growing American retailer over the five-year period because of its acquisition of Safeway, which nearly tripled its size. Supermarket companies such as Albertson’s comprise the three fastest growing U.S.-based retailers. A joint analysis by Food Marketing Institute and Nielsen estimates that 20% of grocery shopping in America will be online by 2025.
Revenue growth at these companies, however, does not necessarily imply greater profitability. Five companies reported a net profit margin of 1% or less in 2015, and two actually reported net losses during the year. Apple, Inc. had by far the largest profit margin of any retailer on this list, at 22.8% in 2015.
To determine the world’s fastest growing retailers, 24/7 Wall St. reviewed 2010-2015 retail revenue compound annual growth rates for companies listed in the National Retail Foundation’s “2017 Fastest 50 Growing Retailers” report. Fiscal-year 2015 retail revenue, country of origin, and dominant operational format also came from the NRF report.
These are the fastest growing retailers worldwide.