PRN: Retail Sales Rebound But Outlook Is Uncertain as Global Economy Slows Down
Retail Sales Rebound But Outlook Is Uncertain as Global Economy Slows Down
NEW YORK, January 15, 2012 /PRNewswire/ --
The world's 250 largest retailers recorded sales growth in excess of 5 percent in fiscal year 2010 (encompassing fiscal years ended through June 2011), according to the 2012 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited (DTTL), in conjunction with STORES Media. The figures mark a substantial improvement on FY09, when the group recorded anaemic growth of just 1.2 percent.
The report also found that profitability improved, with net profit increasing to 3.8 percent in 2010, up from 3.1 percent in 2009. While this performance has been impressive, retailers will have been concerned by the deterioration in the global economy over the latter half of 2011.
Dr. Ira Kalish, Director of Consumer Business for Deloitte Research, part of Deloitte Services LP in the United States, said: "The global economy is decelerating, with growth in 2012 likely to be slower than in 2011 in many of the world's leading markets. The Eurozone crisis continues to drain investor and consumer confidence, while growth in the United States next year is unlikely to significantly reduce unemployment.
"However, retailers may find some silver linings in this otherwise cloudy environment. One positive effect of slower global growth will be the continued dampening of commodity prices. For retailers, this means some improvement on the cost side of the ledger while retail price inflation in some economies presents an opportunity for improved profit margins, even in the context of slow top-line growth."
To download a copy of the 2012 Global Powers of Retailing, go to http://www.deloitte.com/consumerbusinessÂ
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