WORLD RETAIL SNAPSHOT GLOBAL TRENDS

JULY 2010

WORLD RETAIL SNAPSHOT GLOBAL TRENDS

The retail world’s hottest trends have evolved over the last 18 months, under the influence of a changing context, with the economic crisis still lingering but food sales growing again.

Some of these trends have gained in importance, others have faded. Below is a quick overview:

Small format: stable.

While down in the US with the stalling projects of Tesco (Fresh & Easy) and Walmart (Marketside), the trend towards urban, smaller, more convenient and fresh produce oriented- stores is gaining importance elsewhere (e.g. Carrefour in France).

Hard discount: down.

The huge gains enjoyed by European hard discounters in the early years of the economic slowdown have clearly hit the brakes; but the long term trend remains, not only in Europe but beyond, both in developed (US, Australia) and emerging (Turkey) markets.

Retailer brands: down.

Similarly, the glorious future predicted to retailer brands at the beginning of the crisis has not materialised and seems to have reached a peak, as nationalbrands have found ways to fi ght back and defend their places on store shelves.

Environmental sustainability: up.

As consumer concern on the matter continues to build up,fuelled by heavy media coverage, retailers have not only taken notice of this trend, but seized it fully and proactively,

as shown by Walmart’s ambitious leadership in the field.

CEO turnover: up.

Whether by coincidence or given the new and complex challenges in a global field, some of the world’s largest retailers have changed their heads recently, with the crowningof Mike Duke (Walmart, February 2009), Lars Olofsson(Carrefour, January 2009), and soon Philip Clarke (Tesco,March 2011).

Expansion abroad: up.

As growth has failed to come back as strongly as predicted in developed countries, retailers have continued to rely upon emerging countries in Latin America, Asia and Africa to sustain their growth rates.