Report prospectus - Finaccord · Suning Commerce Group SuperValu Systéme U Takashimaya Target...

Web: www.finaccord.com. E-mail: [email protected]

Global Retailers: Strategies in Payments, Banking, Insurance and Assistance

© Finaccord, 2015 1

Global Retailers:Strategies of the World’s Top 120 Retail Groups in

Payments, Banking, Insurance and AssistanceReport prospectus

October 2015

http://www.finaccord.com/

mailto:[email protected]




Prospectus contents

What is the research?

What is the rationale?

Which 120 retail groups have been researched?

Across which countries has research been conducted?

What is the report structure?

What are the key features of the research?

How can the research be used?

How can the interactive PartnerBASE™ be used?

Who can use the research?

What are some of the key findings?

What is the cost and format?

How can the research be purchased?

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What is the research?

Global Retailers: Strategies of the World’s Top 120 Retail Groups in Payments, Banking, Insurance

and Assistance is a report and accompanying PartnerBASE™ dataset that illustrates the

involvement in financial services of 120 leading retailer groups. For these, the study documents in

detail their involvement in the fields of payments, banking, insurance and assistance including

(where the information is disclosed), the contribution that financial services have made to group

profitability in recent years. Among the 120 groups analysed, only ten had no involvement in the

areas in scope and for 55 (45.8%) financial services activity can be characterised as central to their

wider business strategy by virtue of their ownership of one or more captive or joint venture

companies active in one or more of these fields.

In addition, both for these and the other 55 groups, whose financial services operations are more

operational or limited in nature, product partnerships are logged for each of their retail brands in the

following areas: credit / other pay later cards; consumer finance; other banking products (i.e.

mortgages, personal loans, savings accounts); insurance and assistance (i.e. accident, dental,

health, household, life, motor, pet and other insurance policies plus assistance services); and online

payments (including relationships for online accounts). In total, this research covers over 500

individual retail brands belonging to the 120 groups across 45 countries with consideration of

almost 1,000 distinct retail operations in total, including those of brands that are present across

multiple countries.






What is the rationale?

Finaccord has developed this study as a result of both the growing potential for major retail groups

to generate revenues from financial services and the actual increasing activity that many have in

this field. Indeed, for over 20 of the 120 leading retailer groups researched that disclose sufficient

financial data about their operations in this arena, financial services generated an unweighted

average 28.0% of their total group operating profits during the most recent three years and grew at

an unweighted average of 7.6% over the same period (as opposed to an unweighted average of

2.8% for total group-wide operating profits).

Indeed, while the development of a private-label or co-branded credit card program has often been

the first step taken by retailers into financial services, a number of factors are now encouraging

broader involvement. These include the increasing willingness of consumers to utilise alternative

distribution channels to acquire financial services, consolidation among conventional retail banks

which has reduced consumer choice and provided a strong rationale for the creation of retailer-

owned banks, and the rapid growth of online retail sales which has given impetus for the

development of online payments and other internet-based financial services.






Which 120 retail groups have been researched?

ADEO

AEON

Ahold

Aldi

Alibaba

Amazon

AS Watson

Auchan

Bauhaus

Beisia

Best Buy

BJ's Wholesale Club

Canadian Tire

Carrefour

Casino

Cencosud

China Resources Holdings

Conad

Coop (Schweiz)

Coop Italia

Costco

Couche-Tard

CVS Caremark

Dairy Farm International

Dansk Supermarked

Darty

Dashang Group

Decathlon

Delhaize Group

Dia

Dixons Carphone

Dollar General

E. Leclerc

EDEKA

Edion

El Corte Inglés

Empresas Ripley

Eroski

Falabella

Future Group

Galeries Lafayette

GameStop

Gap

GOME

Grupo Elektra

Grupo Inditex

H-E-B

Home Depot

Home Retail Group

Hudson's Bay Company

ICA

IKEA

Isetan Mitsukoshi

J Front Retailing

JC Penney

Jerónimo Martins

John Lewis Partnership

Katz Group

Kering

Kesko

Kingfisher

Kohl's Corporation

Kroger

K's Holding

L Brands

Les Mousquetaires

Loblaw Companies

Lojas Americanas

Lotte

Louis Delhaize

Lowe's

Macy's

Magnit

Marks & Spencer

Meijer

Mercadona

Metro (Canada)

Metro Group

Migros

Morrisons

Nordstrom

NorgesGruppen

Office Depot

Otto

Pick n Pay Holdings

Publix

Rakuten

REWE

Rite Aid

Rossmann

Safeway

Sainsbury's

Schwarz Gruppe

Sears

Seven & I

S-Group

Shoprite Holdings

Sobeys

Sonae

Spar

Staples

Steinhoff International

Suning Commerce Group

SuperValu

Systéme U

Takashimaya

Target Corporation

Tengelmann

Tesco

The SPAR Group

TJX

Uny

Walgreens Boots Alliance

Walmart

Wesfarmers

Whole Food Markets

Woolworths (Australia)

Wu-Mart

X5 Retail Group

Yamada Denki






Across which countries has

research been conducted?

In order to gather a comprehensive view of the involvement in payments, banking, insurance and

assistance of each of the 120 groups, over 500 individual brands belonging to these groups were

investigated in the following 45 countries, meaning that the research covered 990 retail operations

in total.

Argentina

Australia

Austria

Belgium

Brazil

Canada

Chile

China

Colombia

Costa Rica

Czech Republic

Denmark

Finland

France

Germany

Hong Kong

Hungary

India

Indonesia

Ireland

Italy

Japan

Malaysia

Mexico

Netherlands

New Zealand

Norway

Peru

Philippines

Poland

Portugal

Romania

Russia

Singapore

Slovakia

South Africa

South Korea

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

UK

USA






What is the report structure?

0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology, definitions and other related notes.

2. Group Strategy Overview: this chapter begins by presenting data for the total revenues and

growth in total revenues of the retail groups in scope before then providing an overview of their

involvement in each of credit / other pay later cards, consumer finance, other banking products,

insurance / assistance and online payments, simultaneously illustrating the proportion that have

established captive or joint venture subsidiaries in each of these fields and the proportion for which

involvement in financial services is a core element of group strategy. These elements are then

followed by an analysis of the operating profit generated from financial services over three years

(typically 2012 to 2014) of the 22 groups reporting this data plus the average contribution made by

operating profit from financial services to total group operating profit over the same period for the

same groups.

3. Group Strategy Profiles: for each of the 120 retail groups, this chapter is composed of profiles

that summarise not only their involvement in financial services, including whether they own captive

or joint venture subsidiaries in this field, but also the countries (of the 45 researched) in which they

are active, the brands that they operate and the retail categories in which those brands are present.






What are the key features of the research?

Key features of this research include:

• concise information summarising the strategic commitment to financial services of 120 of the

world’s leading retail groups with coverage of pioneers in this field such as AEON, Carrefour,

Cencosud, Falabella, Grupo Elektra, Lotte, Migros, Otto, Rakuten, Ripley, Seven & i Holdings and

Tesco;

• availability of comprehensive information across 45 countries concerning the involvement in and

partnerships for credit / other pay later cards, consumer finance, other banking products, insurance /

assistance and online payments of over 500 brands belonging to these groups;

• provision of an accompanying interactive PartnerBASE™ dataset that details over 1,700 distinct

product initiatives and that is fully customisable, searchable and filterable, enabling patterns to be

explored across multiple groups, brands and countries;

• analysis of the contribution to group operating profit made by financial services activity over a

three-year period for retail organisations that have made financial services a core element of group

strategic development – the evidence of this research is that for a number of these organisations,

financial services offer an effective way of boosting growth in group-wide profitability.






How can the research be used?

You may be able to use this report and the PartnerBASE™ dataset that accompanies it in one or

more of the following ways:

• gain access to a thorough analysis of the involvement in and partnerships for payment, banking,

insurance and assistance products of 120 of the world’s leading retail groups – how does your

organisation seem to be positioned relative to its rivals?

• understand which product providers have been successful in establishing partnerships with

leading retail brands and groups for credit / other pay later cards, consumer finance, other banking

products, insurance / assistance and online payments, and the degree to which these partnerships

exist across multiple countries;

• use the PartnerBASE™ dataset to drill down to the full details – see which payment, banking,

insurance and assistance products are offered by which retail groups and brands in which countries

and with which product providers they co-operate in this context;

• appreciate the contribution made to total group profitability of operating profit from financial

services for retail groups that have made involvement in financial services a strategic imperative.





© Finaccord, 2015

Brand Group Country Product typeProduct

offered?Operating model Partner(s) Network

Mitsukoshi Isetan Mitsukoshi Japan Credit card Yes Captive partner MI Card American Express, Visa

Queen's Isetan Isetan Mitsukoshi Japan Credit card Yes Captive partner MI Card American Express, Visa

Shin Kong Mitsukoshi Isetan Mitsukoshi Taiwan Credit card Yes External partner Taishin International Bank Visa

Daimaru J Front Retailing Japan Credit card Yes Captive partner JFR Card MasterCard, Visa

Matsuzakaya J Front Retailing Japan Credit card Yes Captive partner JFR Card MasterCard, Visa

JC Penney JC Penney US Credit card Yes External partner Synchrony Financial Private

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How can the PartnerBASE™ be used?

Filter by brand

and group

See operating modelView results across

multiple countriesChoose product

type

Identify partners






Who can use the research?

1. Retail groups: leading retail groups can utilise the research to get a comprehensive

understanding of the payment, banking, insurance and assistance services offered and

partnerships set up by their global comparators, thereby obtaining a near-worldwide view of

this activity through a single source;

2. Banks, other lending institutions and payment firms: opportunities exist for these types of

organisation both to create partnerships with retailers, either at the level of individual products

or for formal joint ventures, and to acquire equity stakes in the captive or joint venture banking

or payment service subsidiaries of retail groups;

3. Insurance and assistance companies: the published study and PartnerBASE™ dataset can be

used to obtain an immediate understanding of the involvement of both leading retail groups and

your competitors in retailer ‘brandassurance’ across a diverse range of countries;

4. Management consultancies: if you are helping a company involved in retailer financial services

with its product or partner strategy, then this research will explain the international activity in

this field of major retail groups and brands, saving time and effort on researching the subject

yourself.





© Finaccord, 2015

No financial

services activity, 10

Operational involvement

in financial services, 55

Strategic commitment to

financial services, 55

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What are some of the key findings?1. At the time of the research, 55 of the 120 retail groups had involvement in financial services

that could be described as being of central importance to their broader strategy while for 55

their activity was purely operational and the remaining 10 had no involvement whatsoever

Source: Finaccord analysis






What are some of the key findings? (cont.)2. The 120 retail groups in scope are most likely to have established captive

or joint venture subsidiaries in the field of credit and other pay later cards

Source: Finaccord PartnerBASE™ for Global Retailers

0% 10% 20% 30% 40% 50%

Credit / other pay later cards

Consumer finance

Other banking products

Insurance / assistance

Online payments

Captive only

JV only

Captive and JV

% of 120 retail groups with financial services captives and / or JVs





© Finaccord, 2015

AEON

14

What are some of the key findings? (cont.)

3. For a number of retail groups, profits generated from financial services are

either substantial or make a significant contribution to overall profitability or both

Source: Finaccord analysis

0%

15%

30%

45%

60%

75%

0 100 200 300 400 500

Average annual profit generated from financial services as

a percentage of average annual total profit, 2012 to 2014

Average annual profit generated from financial

services, 2012 to 2014 (USD million)

Seven & i Holdings

Auchan

Rakuten

Migros

Grupo Elektra

ICA

Carrefour

Canadian Tire

CencosudLotteLoblaw






What are some of the key findings? (cont.)

4. Key findings from the executive summary include:

• ultimately, it may be said that the involvement of retailers in payments, banking, insurance and

assistance is not new as a number of the groups have been active in one or more financial services

fields for several decades;

• however, the evidence of this study is that a number of retail groups that have made the

development of financial services a central part of their strategy are now reaping the rewards of that

commitment through the contribution made by financial services to their overall profitability;

• thus, a recurring question for retail groups whose involvement in payments, banking, insurance

and assistance is either purely operational or non-existent is whether they should seek to draw

inspiration from these competitors by building more substantial financial services of their own;

• indeed, there may be a rationale for this given that the evidence of Finaccord’s research is that

there is often greater potential to achieve growth in revenues and profits from financial services

than there is from core retail activity, which is a mature environment in many countries.






What is the cost and format?

Global Retailers: Strategies of the World’s Top 120 Retail Groups in Payments, Banking, Insurance

and Assistance is available as a standard PDF document. The PartnerBASE™ that accompanies it

at no further charge is in Excel format. Costs for this research set and other titles with a global

perspective available at the time of publication are as follows:

For Singapore-based clients, GST at the prevailing rate will be added to the basic price. Costs quoted are for a single site

user licence only. For a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or

GBP, at the prevailing exchange rate, if preferred.

REPORT

Global Retailers: Strategies of the World’s Top 120 Retailing Groups in Payments, Banking, Insurance and Assistance

Global Automotive Manufacturers: Strategies in Finance, Insurance, Warranties and Assistance

Global Bancassurance: Product and Partnership Strategies of the World’s Leading 150 Retail Banking Groups

Global Bancassurance: Product and Partnership Strategies of the World’s Leading 500 Retail Banking Groups

Global Coalition Loyalty Programs

Global Emerging Payment Means: A Worldwide Review

Global Expatriates: Size, Segmentation and Forecast for the Worldwide Market

Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance

PRICE *

USD 3,495

USD 4,195

USD 5,595

USD 11,195

USD 3,495

USD 2,795

USD 4,195

USD 4,195






How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord website, create your account (if you do not

have one already) and place your order online. Products paid for online by card will be delivered

immediately by e-mail but please allow up to one working day for delivery by e-mail if you choose to

pay on receipt of invoice.

With regards to the corporate user licence, you will be asked to choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

Alternatively, you can place an order by sending your request to [email protected], clearly

stating the product(s) required, associated price(s) and billing details for eventual invoice or card

payment receipt.




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