Global Retailing Trends

The global retailing trends suggest that, the continued growth and market penetration of the largest retailers is having a major macro-economic impact. The rising competition among these major retail players is forcing prices down and allowing the price conscious consumer to have more power as a consumer. Global retailing trends also suggest that the recent mergers and acquisitions activity by the major players in global retailing has produced significant movement in the ranks beyond the top 10 retailers. However, sales growth would generally create huge expenses. Earnings for companies that were involved with a merger or an acquisition were hit hard by integration and conversion costs, and companies have struggled to extract maximum value from their acquisitions. In terms of global retailing it is important to note that food-related retail stores still heavily outnumber other types of retailers. According to Deliotte, “nearly 60 percent of the Top 250, and 9 of the top 10 retailers, sell food, with most operating a variety of formats including supermarkets, hypermarkets/supercenters, hard discount stores, cash & carry/warehouse clubs, and convenience stores.”

After analyzing these trends one can deduce that the global economy is rich place for retailers to do business. With the increase in activity in the global economy retailers can expect to see more global distributing channels form as well as current channels becoming more efficient. Finally consumers can expect to see lower prices around the globe with all of the competition that is taking place in the global market. The competition from all of the retailing companies will drive prices down and give consumers more bang for their buck.