Deloitte Report: Cautious Consumers Put the Brakes on Retail Sales Growth, But Profits Increase
NEW YORK, Jan. 13, 2011 /PRNewswire-AsiaNet/ —
More than one-third of the world’s 250 largest retailers suffered a decline in sales in fiscal year 2009 as the global downturn led to more cautious consumer behavior and a drying-up of available credit. However, the 2011 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited (DTTL) in conjunction with STORES Media, reveals that the efforts of many companies to cut costs and adjust their inventory levels have paid off, with net profit across the top 250 retailers increasing from 2.4 percent in 2008 to 3.1 percent in 2009.
Profitability improved in every product sector and almost every region. Fashion retailers put in a particularly strong performance, increasing their profit margin from 4.1 percent to 7.6 percent. Regionally, the biggest increase in profitability was in Latin America, with the profit margin increasing from 1.4 percent to 3.3 percent.
Dr. Ira Kalish, Director of Consumer Business for Deloitte Research, part of Deloitte Services LP in the United States, said: “These figures demonstrate the efforts of retailers around the world to manage the bottom line. It will be harder to continue to boost profits through these measures, and instead retailers will hope economic recovery can put sales growth back on track.”
To read a complete version of this press release, or download a copy of the 2011 Global Powers of Retailing, go to http://www.deloitte.com/consumerbusiness
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SOURCE: Deloitte Touche Tohmatsu Limited
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