What Makes the World’s 5 Fastest-Growing Retailers Tick?

Melina Druga explains how five rapidly-growing retailers are expanding their business right now

What do Sprouts Farmers Market, Axel Johnson AB, Albertsons Companies, JD.com and Vipshop Holdings have in common?  They are the world’s fastest growing retailers, according to Wall St 24/7.

Two are headquartered in Asia, two in North America and one in Europe.

Let’s take a look at the top five and how they have been making news lately:

  1. Sprouts Farmers Market: This American supermarket chain had retail sales totaling $3.6 billion in fiscal year 2015.  Five-year annual retail growth was 47.4%.  In recent months, the chain has expanded to several U.S. cities.  Earlier this year, three stores opened near Atlanta with a fourth planned for June, increasing the number of stores in the metro area to 16.  A store also opened in Florida, its third.  Meanwhile, two stores in Philadelphia and one in Orlando have been proposed.  Source:  Atlanta Business Journals,  Tampa Bay Business Journals, The Philly and Orlando Business Journals, Wall St 24/7
  1. Axel Johnson AB: This Swedish supermarket chain operates under the names Axfood and Axstores.  It had retail sales totaling $5.9 billion in fiscal year 2015.  Five-year annual retail growth was 49.2%.   In January, Axfood acquired Eurocash Food, the largest grocer along the Swedish-Norwegian border, for an undisclosed amount.  Axfood also purchased Norgesgruppen, contingent upon approval by the Swedish Competition Authority.  The purchases are part of a strategy to strengthen sales in Sweden and gain access to cross-border customers.  Source: Yahoo! Finance and Wall St 24/7
  1. Albertsons Companies: This American supermarket chain had retail sales totaling $58.7 billion in fiscal year 2015.  Five-year annual retail growth was 74.1%. The company has started a pilot program in Idaho which will expand healthcare at Albertsons’ pharmacies by allowing pharmacy technicians to perform immunisations.  Interested technicians received a four-hour training course.  The program is the first in the U.S. to allow pharmacy technicians to undergo the pharmacy board-approved training to administer immunisations to pharmacy patients. Source: PR Newswire and Wall St 24/7
  1. JD.com: China’s largest retailer after Alibaba Group Holdings had retail sales totaling $27 billion in fiscal year 2015.  Five-year annual retail growth was 81.3%.   Since going public, the company has posted its first quarterly profit.   In 2016, the company purchased Wal-Mart’s Yihaodian local shopping platform.  Since, sales have increased 41%.  There are plans later this year to spin off the company’s online payments and finance division.  This quarter, profits are forecasted to grow between 35% and 39% as it invests in new markets.  During the first quarter, the number of customers rose to 236.5 million and volume grew 42%.  Source: Bloomberg Technology and Wall St 24/7
  1. Vipshop Holdings: This Chinese company had retail sales totaling only $6.1 billion in fiscal year 2015.  However, five-year annual retail growth was 184.6%.   Over the next year, earnings are forecasted to grow 22.2%.  Is this growth realistic?  The company has not kept up with average growth in earnings over the past year, so it seems unlikely.  Source: Simply Wall St. and Wall St 24/7

 

Top photo © mathisworks / Getty Images

About Author

Melina Druga

Melina Druga is an author and freelance journalist, working with our partner Reportlinker. www.reportlinker.com

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