Global retail revenues are up amid pessimistic forecasts
Now that the holiday season is over, retailers around the world are analyzing how well they performed. Before the shopping rush started, there was some concern about how businesses would fare,as economic downturns still loomed over several countries and industry experts forecasted a less-than-stellar season for many companies. However, research has revealed that global retail revenues actually increased over the past year and throughout the recent holiday season, as businesses looked to expand to new markets and consumers regained their confidence and spent more.
Fiscal year 2011 saw vast improvements in revenues
According to a study by Deloitte Touche Tohmatsu Limited and STORES Media, for the fiscal year 2011 – which ended in June 2012 for many retailers – global revenue reached $4 trillion, a year-over-year increase of 5 percent. This growth came amid economic concerns within many countries.
The report states that emerging markets played a big role in the retail revenue boost, especially the Latin American, Asian, Middle Eastern and African regions. Middle class consumers as well as younger customers and foreign investments helped to fuel this trend.
“Growth opportunities for many of the world’s largest retailers continue to be driven by global expansion in an attempt to make up for slow-growing or stagnant domestic markets,” said Ira Kalish, director of global economics at Deloitte Services LP. “Despite a stumbling global economy, consumers continued to spend in 2011, which has served to boost global revenues. This year’s report shows a growing number of retailers in mature markets ramping up their efforts in foreign markets in search of more attractive growth opportunities, employing multiple market entry strategies including franchising, licensing and joint ventures, in addition to owned expansion.”
US holiday retail sales could boost fiscal year 2012
While all of the global retail holiday sales numbers are not yet out, American retailers certainly saw improvement from the past year. This growth could help fuel an even better fiscal year 2012 for businesses. Reuters reports that research from ShopperTrak revealed that retail sales during the holiday season rose 2.5 percent year-over-year, as consumers hit stores and websites in November and December to stock up on products and gifts. In addition, merchants took steps to draw in customers, including offering discounted items and special deals for the season, notes the source.
