What: The Top 100 NRF ranking shows an overall stabilisation

Why it is important: Convenience, diversification, digitalization are the common traits of the post-pandemic winners.

The National Retail Federation, analyzed by Kantar, identifies a "big trend" in its Top 100 Retailers list: the stabilization of pandemic-era spending patterns. In the 2023 rankings, the top 20 retailers remained mostly unchanged, with slight shifts such as CVS and Target swapping positions, demonstrating the resilience and financial muscle of these leading companies. Walmart continues to dominate with USD 533 billion in U.S. sales, while even the 20th ranked 7-Eleven garnered USD 27.88 billion. Only five of the top 20 experienced minimal losses.

The top performers continue to leverage mergers and acquisitions for growth. For instance, Overstock.com saw a dramatic 135.1% sales increase after acquiring Bed Bath & Beyond's online operations, marking the highest growth rate on the list. Meanwhile, Dick’s Sporting Goods and Walmart also reported growth, the latter even after divesting several subsidiaries.

Significant movements in the grocery sector include the Kroger and Albertsons merger still pending legal approval, with both companies experiencing modest sales increases. Other grocers like Publix and H.E. Butt Grocery showed notable growth, reflecting strong sector performance despite rising food costs, which David Marcotte of Kantar does not attribute solely to inflation.

On a broader scale, the retail landscape shows signs of post-pandemic adaptation, with shifts towards more convenience and digital integration. Marcotte highlights that strategic adjustments are crucial as consumer behaviors evolve, particularly in sectors like convenience stores and consumer electronics, which are experiencing cyclical challenges. Sprouts Farmers Market and Harbor Freight Tools exemplify aggressive expansion strategies, significantly increasing their store counts.

The top three retailers—Walmart, Amazon, and Costco—demonstrate strategic consistency and diversification, including Walmart's push into financial services and Amazon's continued investment in innovative projects. These companies set benchmarks for navigating retail dynamics effectively, emphasizing the importance of adaptation and strategic planning in maintaining industry leadership.

NRF releases its annual top 100 ranking