20 “super winner” companies now account for 97% of economic profit in the retail and fashion industry, a dramatic increase from 70% in 2010.
The study shows increased polarization, with luxury and value advancing and mid-market players falling behind. “Well-known European luxury companies tended to be overrepresented in the top 20, with North American companies coming in a close second.”
Over time North American department stores lost out, with none remaining in the top 20, compared with three 10 years ago — a stark illustration of the fragility of the traditional retailing model.
The report states that 20% of companies represent 128% of the total industry economic profit.