Annual ranking of the nation’s largest retailers based on total revenues
A
By Marianne Wilson mid an uncertain economic environment, shifts in consumer spending, and increased costs and labor problems, the country’s largest retailers continue to demonstrate their resiliency — a fact made clear in Chain Store Age’s annual ranking of the top 100 U.S. retailers. The CSA Top 100 ranks the industry’s largest players by total revenues in their most recently completed fiscal year, which for most companies is 2022. With few exceptions, mostly owing to mergers/acquisitions or liquidations, the ranking has remained remarkably consistent for some time. This is especially true among the powerhouse retailers that make up the top 10, a group whose operating excellence (in-store and online), omnichannel investments, flexibility and agility help keep them at the top of their game and in sync with customer demand. On Top: As it has for the past 20-plus years, Walmart once again claimed the No.1 spot on the CSA list. The retail behemoth, which is also the nation’s largest private employer, had another strong year, with its fiscal 2023 revenue (ended 1/31/2023) rising 6.7% to $611.3 billion. In the U.S., comp sales increased 6.6%, and e-commerce sales grew 12%. Walmart’s ongoing success in today’s uncertain economic environment comes as the chain has worked successfully to keep its prices low. Its focus on low-priced everyday essentials — including groceries — has given it a buffer against the pullback in discretionary spending. The strategy has also brought in new, higher-income shoppers. “We see people across income cohorts come to us more frequently, looking to save money on everyday needs,” Walmart CEO Doug McMillon said on the company’s second-quarter earnings call in August. “That gives us an opportunity to drive conversion in more discretionary categories.” Walmart’s strength in grocery shows no signs of losing momentum. Grocery led the chain’s most recent quarter’s sales growth, with increases in both dollars and units sold. 8
In the race to stay on top, Walmart continues to make big investments in technology and omnichannel along with supply chain innovations as it sharpens its fulfillment and delivery capabilities. The company also continues to grow alternative streams of revenue such as its global advertising business, which grew nearly 30% to reach $2.7 billion last year, and its delivery-asa-service platform, Walmart GoLocal, which delivers goods to customers of other businesses. Amazon ranked No. 2 on the list for the seventh straight year as it continues to inch closer to the top spot. In 2022, the company’s total net sales surpassed the half-trillion-dollar mark — increasing year-over-year to $514.0 billion — becoming the second U.S. company after Walmart to reach that milestone. The increase came as Amazon focused on cost-cutting efforts that included layoffs, the closure of some its physical store concepts and scaling back its fulfillment center growth. The company continues to to invest in cutting-edge and emerging technologies, including generative AI, which is “core to setting Amazon up to invent in every area of our business for many decades to come,” CEO Andy Jassy wrote in a letter to investors in April. According to an analysis by Forrester, Amazon’s service sales — which includes everything from third-party seller sales and sales from subscriptions (including Prime) to advertising and cloud computing (Amazon Web Services) — are key to its growth. Indeed, Amazon Web Services remains Amazon’s most profitable segment. It generated more than $80 billion in revenue in 2022, with an operating profit of 29%. Amazon has also emerged as a key player in the advertising space. It generated $38 billion from advertising services in 2022, up from $31 billion in ad revenue the previous year. Walmart, Amazon and the other top retailers have shown themselves adept at managing — and staying on top of — the constant change that defines today’s retail landscape. They embrace innovation and know, at the end of the day, they can always do better.
Methodology: Behind the Numbers
Chain Store Age’s Top 100 ranks retail companies by net revenues in the firm’s most recently completed fiscal year (as of press time.) For retailers based in North America, the data reflects the company’s total global store count (except if otherwise noted). For foreign-based companies, such as Ikea, only the figures related to the company’s North American division are provided (except if otherwise noted.) The ranking contains a number of privately owned companies that do not release annual reports, financial statements or basic details related to their operations. The estimated metrics for these companies, which are highlighted in the listing with an E, are based on public and private reports and independent research. (Research for Top 100 compiled by contributing editor Debra Hazel.)
SEPTEMBER/OCTOBER 2023
CHAINSTOREAGE.COM