Which retail companies are the most successful in 2022? What factors have contributed to their success? Retail Information Systems (RIS) partners with wRatings to rank the industry’s most powerful retail organizations. Theses rankings look at market share, how it translates to overall sales and where these companies invest to stay competitive.
In this blog post, we’ll explore the top three retail companies of 2022 and why they’re successful. Then, we’ll look at what these companies are doing right and how you can apply some of their innovation to your business. So, without further ado, let’s get started!
Number #3: Consumer Value Store (CVS) Health Corporation
- CVS Health owns 6.46% of the retail market, equating to $292 billion in sales.
CVS is known for selling prescription drugs and a wide assortment of general merchandise. Products include over-the-counter medications, beauty products, cosmetics, seasonal merchandise, greeting cards, and convenience foods.
Consumer Value Store (CVS) core values:
These products sell through their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. Additionally, the company is involved in providing health insurance, medical benefits, and a variety of health and medical services.
What is CVS Health’s business strategy?
CVS’s strategy is based on sourcing generic medication to achieve a competitive advantage through reduced costs associated with retail pharmacies, formulary management, and healthcare services that it passes on to customers.
What has CVS Health done differently in 2022?
In 2022 CVS expanded its retail and primary care services and has prioritized increasing digital capabilities to help customers schedule care and connect with physicians to access high-quality affordable care.
What are CVS Health’s future business plans?
CVS Health has become the second-largest healthcare company in the world, with a $141 billion market cap, according to an April 13 CB Insights report. Over the next several years, CVS’s growth strategy will focus on strengthening consumer ties through:
- Investing $3 billion in digital systems to improve the consumer experience at its retail locations.
- launching a $100 million venture fund targeting early-stage health tech companies in supporting medical research and development
- Increasing access to its Carepass membership program allowing paid members to receive free delivery of prescriptions from CVS pharmacies. In 2022, the program membership increased by 6 million subscribers, a 40% jump from last year.
- Improve access to CVS’ self-service digital solution. This system helps to complete medical forms and administrative processes ahead of appointments, improving convenience and reducing waiting times.
In addition to its pharmacies and walk-in clinics, CVS manages medical benefits manager and a health insurance provider. In recent years, the company has built dozens of strategic business partnerships, invested in startups, and acquired various companies that complement its core business and operational capacities
Number #2: Amazon.com
- Amazon claims 10.40% of the retail market share, equating to $469 billion in sales.
Amazon.com is a vast economic business that sells books, music, movies, appliances, electronics, toys, and many other goods directly to customers or as the middleman between retailer partners and Amazon.com’s enormous customer base.
The company operates across five continents, wherein 20 countries have dedicated websites for consumers and sellers. These include the United States, Canada, France, Italy, the United Kingdom, Turkey, India, Saudi Arabia, Japan, Singapore, Mexico, and Brazil.
Amazon is guided by four guiding principles that shape its business model:
- Customer obsession rather than competitor focus
- Passion for invention
- commitment to operational excellence
- Long-term thinking
The company strives to be the most customer-centric retailer, the best employer, and the safest place to work on the planet.
What is Amazon’s business strategy?
Amazon’s business strategy is based on one primary goal: to meet customers’ needs and wants with a superior experience so that Amazon becomes part of every single purchase made. For example, the company has developed an industry-leading reputation for consistently providing reliable and fast deliveries of good quality products. Hence, optimizing its customer experience, it has been able to outperform e-commerce rivals and maintain an extremely loyal customer base.
What has Amazon done differently in 2022?
In 2022, Amazon continued to execute its focus on investing significantly in the construction and expansion of fulfillment centers, inventory management systems, and logistics capabilities. This strategy has expanded growth in the number of sellers and packages processed and fulfilled by Amazon (FBA).
What are Amazon’s plans moving forward?
Amazon.com plans to invest $1 billion in companies developing logistical, supply chain management, and safety technologies as the retailer seeks innovations to support its core business. In addition, Amazon plans to expand into Belgium, Chile, Colombia, Nigeria, and South Africa while maintaining its current base.
Number #1: Walmart Inc.
- Walmart leads the pack, claiming a 12.67% retail market share, equating to $572 billion in sales.
Walmart Inc is a retailer that operates grocery stores, supermarkets, hypermarkets, department and discount stores, and neighborhood markets. The company designs its policies and conducts its business based on the following values and beliefs:
- Service to the customer.
- Respect for the individual.
- Strive for excellence.
- Act with integrity.
What is Walmart’s business strategy?
Walmart’s business strategy is based on leading the competition in product assortment, broadening consumer access, leading in terms of price, and delivering an incredible customer experience with “Everyday Low Prices” (ELDP).
Walmart has a well-established reputation for selling products at a consistently lower price than competitors. There are many things Walmart does to maintain ELDP. However, three operational processes remain key to Walmart’s success.
Innovative supply chain management
Walmart’s supply chain system allows suppliers to access inventory levels and prepare replenishment schedules as required. This system supports the company’s vendor-managed inventory model, which helps minimize operating costs and enables the business to offer low selling prices.
Retaining reliable suppliers
Walmart emphasizes working with partners that share its values, sourcing objectives, and business goals. The aim is to have collaborative synergetic relationships that mitigate risk, reduce logistical costs and achieve long-term integration with like-minded suppliers.
Economies of scale that no other retailer can match
Walmarts size gives the company tremendous bargaining power with its suppliers allowing it to keep prices low. Additionally, its size facilitates inexpensive distribution. Moreover, its access to “big data” provides it with large amounts of information regarding consumer buying patterns allowing it to effectively, accurately, and efficiently source its products.
What has Walmart done differently in 2022?
Walmart introduced or accelerated significant changes during 2022, including:
- Closing Locations permanently: stores that are no longer competitive with eCommerce.
- Opening of New fulfillment centers: these centers will help support Walmart’s increasing investments in eCommerce operations.
- Pulling several products from store shelves: products that do not meet Walmart’s criteria for selling are discontinued.
What are Walmart’s plans moving forward?
Enter the Financial Services Market
Walmart plans to open up financial services and products to its 1.6 million U.S. employees and 100 million plus customers. For example, the company plans to implement a simple, personalized app that allows users to manage their money in one place.
Increase its Market Share in Health & Wellness
Walmart is announcing the launch of the Walmart Healthcare Research Institute SM (WHRI) to increase community access to healthcare research that may help lead to safer, higher quality, and more equitable healthcare.
Increase E-Commerce Business
Walmart’s strategic objectives include selling more goods to American consumers via e-commerce. Plus, the company grows its revenues through online sales as the e-commerce environment continues to grow.
Become More Environmentally Responsible
Walmart has a goal of being a more environmentally responsible company. They aim to create zero waste, operate with 100% renewable energy, and sell products that sustain our resources and the environment.
Invest in Technology & Innovation
Lastly, Walmart aims to invest in technologies and process innovation to maintain its competitive position. The company continues to utilize the latest technologies and software solutions to improve customer experience and ensure EDLP.
The retail industry is constantly evolving, and in order to stay ahead of the competition, you need to be on top of your game. This blog post briefly explored the top three retail companies of 2022 and why they have been successful.
Thank you for reading our article!
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