More of the world’s top retailers are targeting the Australian market, with consultancy firm Deloitte suggesting that this trend is set to increase.
According to Deloitte’s annual Global Powers of Retailing report, 37 of the world’s top 250 retailers were operating in Australia as of 31 December 2014, up from 30 the previous year. With the Woolworths and Westfarmers groups, the latter of which controls supermarket giant Coles, the only two Australian firms to make the top 250 list, Deloitte warned local retailers that offshore interest in the market was only set to intensify.
“What should be of concern to Australian retailers is that 85 per cent of the top 250 retailers currently aren't operating in Australia, meaning that competition is only likely to increase,” the report explained.
The report highlighted particular potential for emerging Chinese retailers within the nearby Australian market.
“It's important to note that there are only eight Chinese companies in the top 250, none of which are currently operating in Australia,' the report said. 'With the growth in the middle classes in China and a rapidly growing domestic retail market, it's only a matter of time before we see more Chinese retailers appear in the top 250 - and, of course, their entrance into the Australian market.”
