Check out the list of the top 10 world’s retailers bravely withstanding the COVID-19 challenges
10 largest retailers in the world. Source:?shutterstock.com
The global retail picture was more or less stable before coronavirus shook the market grounds. Previously the key to success in this industry was understanding of the target audience, its needs, demands and desires. Suddenly, the whole retail landscape changed and all sellers needed to adapt to the changing environment, legal obstacles, and the fear of human contact.
Moreover, the global crisis has greatly affected customers too. They are now inclined to spend less money, postponing or denying non-essentials. This year, a steady curve of retail profits is going to take a steep fall. Some experts estimate global retail sales will go down by 5.7%, while the research firm Forrester expects the plunge to be as deep as an average of 9.6% representing a loss of $2.1 trillion.
Those who have managed to modify their business models are still riding the wave now. Those who haven’t are hitting the sad headlines announcing “another major retailer gone bankrupt”.
PaySpace Magazine Global presents you a fresh list of the top 10 world’s retailers bravely withstanding the COVID-19 challenges.
The 10 largest publicly traded retailers
- Walmart
- Amazon
- Alibaba
- CVS
- Home Depot
- Walgreens Boots Alliance
- Costco
- Lowe’s
- Target
- JD.com
Walmart
Walmart is currently the world’s leading retailer. Source: shutterstock.com
With a market cap of $371.790B, Walmart is currently the world’s leading retailer. Its revenue for Q2 2020 amounted to $131,7 billion which means a 2.9% increase on a year-to-year basis. Due to the pandemic spread, the retailer’s online sales grew by 37% mainly because of the increased demand for grocery deliveries. Namely, the number of US grocery delivery locations surpassed 1,100 whereas the same essentials could be picked up at 2,700 locations nationwide. Net sales of Walmart, US comprised $85,2B showing positive growth. However, its international division has made only $29,1B in net sales which is 1% lower than in Q2 2019.
This multinational retail corporation definitely feels which way the wind is blowing and satisfies the needs of local communities. It’s currently expanding the Walmart Health network, to incorporate the CareZone technology platform, and focusing on digital healthcare solutions which will be essential in the days to come. Walmart is also proceeding with its environmental initiatives such as designing a sustainable retail bag and reducing its forest “footprint”. Moreover, it supports those stuck at home for the whole summer with a free star-studded virtual camp and a touring drive-in movie theater that will transform Walmart parking lots into outdoor cinemas.
Amazon
Amazon.com Inc is currently boasting an impressive market cap. Source: flickr.com
Amazon.com Inc is currently boasting an impressive market cap of $1.522T. All those eager are still expecting the corporate webcast which will soon reveal the financial results of Q2 2020. In Q1, its net sales increased by 26% to $75.5B.
Meanwhile, one of the Big Four technology companies is donating food delivery services to food banks and community organizations across the US. It has already helped to bring 6 million meals to people in need. The company has also released Contact Lens, a set of capabilities for Amazon Connect enabled by machine learning. With Contact Lens, contact center supervisors can conduct fast, full-text search on call transcripts to troubleshoot customer issues and improve contact center agents’ performance with call analytics. This is an incredible addition to the work of customer support teams that now face increased pressure of high call volumes and agent shortages.
Alibaba
Alibaba Group Holding is the third top retailer. Source: flickr.com
Alibaba Group Holding is the third top retailer globally with a market cap of $5.129T. Its revenues for the Q1 2020 reached RMB114.3B ($16.144B), an increase of 22% year-on-year. The company also “achieved the historic milestone of US$1 trillion in GMV across our digital economy this fiscal year,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.
While the income level has fallen during lockdown, and many international customers have had unspeakable bias against goods ordered from China, now Alibaba is rising from the ashes. Tmall, Alibaba’s premier B2C e-commerce platform, has witnessed the number of merchants participating in its 6.18 Mid-Year Shopping Festival, doubling compared to last year.
CVS
CVS Pharmacy is an American retail corporation owned by CVS Health. It’s by far the largest national drugstore network. In 2019, the company’s total number of stores was nearly 10 thousand. Its market cap is $81.785B, while the revenue for the Q1 2020 equaled to $66.755B. CVS Health also reported a 9% increase in same-store sales and a jump in use of its digital services during the first quarter.
Currently, the company is not only expanding the network of drive-through Covid-19 testing locations, but is also launching “Time for Care”, a campaign that reinforces the importance of accessing primary health care. As you may know, many serious health conditions have remained undiagnosed since the pandemic started as people avoid visiting healthcare facilities.
Home Depot
Home Depot is the largest home improvement retailer in the US. Source: pixabay.com
The market cap of the largest home improvement retailer in the US is $285.97B. The company has reported sales of $28.3B for the first quarter of fiscal 2020, a 7.1% increase from the same period last year. However, net earnings for the Q1 2020 were $2.2 billion, down from $2.5 billion in 2019. Although the Home Depot stores were deemed essential and kept working all along, the company is closing stores early to allow more time for sanitization and restocking. It has also introduced a free kerbside order pickup to most stores as an extension of the buy online, pick up in store option.
Walgreens Boots Alliance
Another American holding company that deals with pharmaceutical manufacturing, wholesale, and distribution in over 25 countries has an estimated market cap of $34.523B. Walgreens has surprisingly beaten all Wall Street’s earnings expectations for its fiscal second quarter. Its reported revenue reached $35.82 billion. The company attributed the growth to the larger number of prescriptions it filled and higher drug prices. However, just in a few months, the company witnessed steep losses of $1.71 billion, or $1.95 per share. Thus, the global drugstore chain said it would cut more than 4,000 jobs in its Boots UK business and shut 48 optician centers in the UK.
Currently, the Alliance is in the middle of major strategic changes. the company announced plans for a transition of leadership in order to transform the business within the rapidly-evolving healthcare sector. Stefano Pessina has decided to step down as CEO after years of stock underperformance when investors have watched their shares lose around 58% of their value.
Costco
Costco is one of the largest American supermarket chains. Source: shutterstock.com
Costco Wholesale Corporation, one of the largest American supermarket chains, now has a market cap of $145.12B. Their sales for Q3 2020 rose by 7% year-on-year, to $36,451B. Recently, the company reported net sales of $16.18 billion for the retail month of June, an increase of 11.1% compared to 2019. Company-wide, e-commerce sales soared 106.2% year over year in May. As for the brick-and-mortar locations, the management is trying to encourage safe purchases with updated shopping policies. For example, Costco Wholesale Club will continue to offer special operating hours for members 60 and older and vulnerable shoppers every weekday morning until further notice.
Lowe’s
With a market cap of $111.48 B, this home improvement retailer has seen its stocks going strong this year. Lowe’s saw online sales jump 80% in the first quarter, with overall sales also dramatically up. Sales for the first quarter were $19.7 billion compared to $17.7 billion in the first quarter of 2019, and comparable sales increased by 11.2%. Net earnings constituted $1.3 billion. The company uses some of its extra earnings to help small businesses reopen in these harsh times.
Target
In the first quarter of this fiscal year, Target Corporation showed contradictory results. Although their sales soared, the profits were dramatically cut by the cost of increased wages, store cleaning and other pandemic-related expenses. The company’s total comparable sales grew 10.8%, reflecting comparable digital sales growth of 141%. Total revenue of $19.6 billion grew 11.3%. Operating income, on the other side, was $468 million, down 58.7% from $1,135 million in 2019. The corporate market cap is now $61.862B.
JD.com
JD.com is China’s leading technology-driven e-commerce company. Source: shutterstock.com
China’s leading technology-driven e-commerce company has been able to remain fully operational throughout the COVID-19 outbreak. It reported net revenues for the Q1 2020 to be RMB146.2 billion (US$20.6 billion), which shows an increase of 20.7%. Income from operations for that period was RMB2.3 billion (US$0.3 billion), compared to RMB1.2 billion last year. Its current market cap is $96.536B. While the popularity of online shopping rises, JD seeks answers to new challenges. For instance, the company is going to launch an augmented reality (AR) try-on feature that allows customers to measure their foot size with a mobile phone equipped with a ToF camera.
SEE ALSO:?
Pay Space
Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.
