The top 25 global retailers by market capitalisation (MCap) reported a 14% decline in their cumulative MCap in Q2 2022, observed GlobalData. The data and analytics company also notes that the top six US companies – Amazon, Walmart, Home Depot, NIKE, Costco and Target – each lost over $25 billion in valuation.
“As result of the stringent lockdowns resulting from the COVID-19 pandemic, retail firms were able to enhance their e-commerce options. Additionally, home improvement and pharmaceutical retailers also benefitted from the pandemic. However, normalcy is returning to markets as more consumers are visiting physical stores,” said Ragupathy Jayaraman, Business Fundamentals Analyst at GlobalData
Additionally, surging inflationary pressures and a hike in interest rates by the Federal Reserve resulted in a broad selloff in stocks in Q2. Retailers are vulnerable to the volatile economic environment as the increasing prices directly impact consumers’ shopping habits. The ongoing Russia-Ukraine conflict has also had an immense impact on their positions, due to the increasing energy prices.
“Amazon was the only organization among the top 25 retailers that lost over $100 billion in its Q2 valuation. Although the company gained substantially from the pandemic, which improved its stocks’ performance enormously in 2020 and 2021, inflationary pressures and the market dip in 2022 brought the company’s stocks back to its pre-pandemic levels. The company also posted its first quarterly loss in seven years. Walmart, Lowe’s, Nike, and Costco each reported more than a 20% decline in their valuation during the same comparison period,” he added.
In contrast, Chinese retail giants Alibaba, Pinduoduo and JD.com reported market cap growth in the present cycle, with Alibaba and Pinduoduo recording more than 35% growth in valuation. Alibaba was the biggest gainer among the retail giants as its valuation improved from $296 billion in Q1 2022 to $616 billion in Q2 2022. However, the Chinese government’s regulatory crackdown on organizations continues to raise concerns for investors.
J Lindeberg was started by Johan Lindeberg in 1990s with the aimSeptember 2, 2022 | By RetailME Bureau
Majid Al Futtaim has made significant strides toward environmental, social, and corporateJuly 5, 2022 | By RetailME Bureau
One of the leading grocery retail operators of hypermarkets and supermarkets in
Al Maya Group has announced the opening of its new supermarket in Arabian
Locally-owned supermarket Spinneys and pharmacy retailer Aster Pharmacy have joined forces to
Majid Al Futtaim has announced its audit reviewed operational and financial results
Dubai’s largest developer Emaar has announced that it will sell it’s online
Walmart announced this week that it will offer Paramount Global’s streaming service
Employee retention has been on every company’s minds, especially since the fears
The Frozen Chicken’ as Spinneys was fondly referred to back in the
Veppy.com, a Q-Commerce marketplace startup just announced their go live date in the
GMG, a global well-being company retailing, distributing, and manufacturing a portfolio of leading
Lulu Group International recently introduced the world’s first AI-powered Food Delivery Robot
Inflation has been the biggest subject for both consumers and businesses alike,
Let’s be honest. There is no such thing as a fully sustainable
The latest State of the UAE Retail Economy report has been released
According to a recent NielsenIQ study, 60% of Saudi Arabian consumers say they’re buying a greater variety of brands
Words by: David Lancefield, Director of Software Solutions, EMEA, Zebra Technologies Most
Saudi-based Fawaz Abdulaziz Alhokair Co. announced its results for the full year
The RetailME Tech and Marcom Summit, which saw more than 45 speakers,
A recent report published by Talkwalker and YouGov has revealed the shifts in
“It was all sand”, I recently heard from yet another Dubai resident
B2B, B2C, B2B2C, D2C… as much as they look like a strange
Back in 2017, a lot of TV and newspaper headlines were overtly