Deloitte Report: Cautious Consumers Put the Brakes on Retail Sales Growth, But Profits Increase

NEW YORK, January 13, 2011 - More than one-third of the world's 250 largest retailers suffered a
decline in sales in fiscal year 2009 as the global downturn led to more
cautious consumer behavior and a drying-up of available credit. However, the
2011 Global Powers of Retailing report from Deloitte Touche Tohmatsu Limited
(DTTL) in conjunction with STORES Media, reveals that the efforts of many
companies to cut costs and adjust their inventory levels have paid off, with
net profit across the top 250 retailers increasing from 2.4 percent in 2008
to 3.1 percent in 2009.

Profitability improved in every product sector and almost every region.
Fashion retailers put in a particularly strong performance, increasing their
profit margin from 4.1 percent to 7.6 percent. Regionally, the biggest
increase in profitability was in Latin America, with the profit margin
increasing from 1.4 percent to 3.3 percent.

Dr. Ira Kalish, Director of Consumer Business for Deloitte Research, part
of Deloitte Services LP in the United States, said: "These figures
demonstrate the efforts of retailers around the world to manage the bottom
line. It will be harder to continue to boost profits through these measures,
and instead retailers will hope economic recovery can put sales growth back
on track."

To read a complete version of this press release, or download a copy of
the 2011 Global Powers of Retailing, go to
www.deloitte.com/consumerbusiness

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Ira Kalish
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=98957

James Igoe, PR Manager, Deloitte UK, +44-20-7303-8247, or cell, +44-7971-783533, jigoe at deloitte.co.uk, or Christine Selph, Public Relations, Deloitte Touche Tohmatsu Limited , +1-212-492-4517, or cell: +1-347-429-2891, cselph at deloitte.com