JB Hi-Fi, the Australian consumer electronics chain, has made it into the top 250 global retailers, bringing the number of Australian companies listed to three.
The Deloitte Global Powers of Retailing report, now in its 21st year, puts JB Hi-Fi’s in the global ranks after its acquisition of The Good Guys in November 2016 and consistent sales growth.
JB Hi-Fi debuts at number 218 on the global list. Wesfarmers is 21st and Woolworths 23rd, compared to 21st and 24th last year.
There are now 38 top 250 global retailers operating in Australia, one lower than last year.
While there are two new additions in JB Hi-Fi and UK department store Marks and Spencer, this is offset by Debenhams and Abercrombie & Fitch falling out of the Top 250. The third is Lowe’s Inc, which exited its operations in Australia with the closure of Masters Home Improvement.
“In 2017 we saw a retail market that was growing overall, but at the same time, the level of competition amongst retailers also continued to increase,” says David White, national leader of Deloitte’s Retail, Wholesale & Distribution Group.
“Ongoing population growth, a strong tourism market and improving wages are all set to ensure the overall retail market continues to grow in 2018. However, with the increase in competition from both international and domestic retailers, we can expect to see further consolidation in the sector.”
White also expects continued strong interest from international retailers for acquisition opportunities in Australia. Further consolidation can be expected in 2018, particularly in the apparel sector.
“With only 15% of the Top 250 retailers globally operating in the Australian market, we can expect further competition to come from international retailers,” says White.
“And with so much change and uncertainty in the Australian retail landscape, 2018 could be a pivotal year for many Australian retailers.”