Episode 7 of 10: Format Revenue Profiles
Retail format is a primary lens for understanding business models and consumer propositions. The current landscape reinforces a wider trend: stronger growth in value and convenience formats relative to traditional super and hyper-market models.
Note: All retail format data is based on the head office location of the top 100 retailers.
The Scale Giants
- Supermarkets: Remain the largest format, accounting for 36.3% of total top 100 revenues. Despite their scale, they lagged the grocery retail average growth in FY24, experiencing a minor share dilution as consumers shifted toward other models.
- Multi-format: The second-largest segment (30.3% share) with the highest average revenue per retailer ($78.5bn). Growth is currently supported by consumer demand for seamless online-to-offline (O2O) experiences. While gaining share in USD terms—driven by the strength of Walmart—the format’s average constant-currency growth of 3.8% actually lagged the overall top 100 average of 4.8%.
The Growth Drivers
- Convenience: The smallest format by revenue share (5.1%) but the fastest growing in constant-currency terms at 7.0%. Success is being driven by regional relevance, particularly in Asia Pacific, alongside consumer trends toward quick, proximity-based shopping missions.
- Discount & Warehouse Clubs: Both formats showed strong constant-currency growth (5.8% and 5.1% respectively). Discounters are successfully tapping into demand for affordable health and sustainability initiatives, while Warehouse Clubs leverage the appeal of bulk buying and membership loyalty in a cost-conscious environment.
- Hypermarkets: Facing the most pressure, this format's revenues declined by 2.2% in USD terms. Excluding the impact of high-growth Russian retailer Lenta, the average constant-currency growth for hypermarkets would be a mere 0.65%, highlighting severe pressure from more agile formats.
Format Share Shifts
Adjusting for currency impacts, Discount, Convenience, and Warehouse Club formats gained share in constant-currency terms. Conversely, Supermarkets and Hypermarkets both lost share as their growth lagged the top 100 average, with Hypermarkets feeling the specific impact of Target’s negative growth performance. Multi-format retailers led share gains in USD terms although growth was below average in constant currency terms indicating some share pressure on this basis.
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