"Non-store Retailing Grows About 10 Times Faster Than Offline"

[Asia Economy Reporter Moon Chaeseok] An analysis revealed that over the past decade, global non-store retail has grown 9.7 times faster than offline retail.

The Federation of Korean Industries (FKI) announced on the 4th that this was the result of analyzing Deloitte Global's 10-year (2010?2020) report titled 'Global Powers of Retailing.'

According to the FKI, non-store retail companies included in the top 250 retail companies in 2010 and 2020 showed an average annual growth rate of 19.4%. Additionally, their total sales increased 5.9 times over the 10 years. In contrast, offline retail companies in the top 250 grew at an average annual rate of 2.0% during the same period, with total sales increasing only 1.2 times.

This means the growth rate difference between these two fundamentally different types of retail is 9.7 times.

The FKI reported that as of 2020, there were a total of 37 countries with companies in the global top 250 retail companies, with the United States having the most at 70 companies. This was followed by Japan (29 companies), Germany (18 companies), the United Kingdom (15 companies), and China (14 companies). Notably, although the number of U.S. companies in the top 250 decreased from 81 to 70 over the past decade, the share of total sales accounted for by U.S. retail companies increased from 41.7% to 46.2% during the same period.

On the other hand, the number of Korean companies included in the top 250 retail companies was only five (Emart, Lotte Shopping, Coupang, GS Retail, Homeplus). Furthermore, the average sales per Korean retail company was $11 billion, which was only 53.9% of the top 250 average.

Yoo Hwan-ik, head of the FKI Industry Division, said, "In an era where consumption occurs online without borders, retail companies with global competitiveness must be supported by appropriate retail policies," adding, "Regulations that do not reflect the current retail market situation need to be improved."