Farfetch has been named the UK’s fastest-growing retailer, beating powerhouse names like JD Sports, Asos and Superdry who were also ranked in the top 10.
According to a new retail growth index from OC&C Strategy Consultants and Financo released today, online retailer Farfetch took the top spot after clocking up 70 per cent revenue growth in 2016.
The Hut Group, which owns a variety of ecommerce retailers such as Glossybox and Preloved, came in at second place after growing by 50 per cent in 2016.
The UK’s joint third-fastest growing retailers are Wren Kitchens and JD Sports, both of which clocked up 31 per cent growth in revenue in 2016 respectively, while Asos, Well Pharmacy and toy retailer Smyths were next on the ranking for their respective 28 per cent growth last year.
Rounding out the top 10 are Superdry and Screwfix, both with 27 per cent growth, followed by B&M at 10th place for 25 per cent growth.
However, in terms of absolute growth, it’s Primark who took the top spot according to the growth index.
The discount retailer raked in a whopping £602 million in absolute growth in 2016, with JD Sports coming in at second with £558 million.
B&M came in at third, £376 million of absolute growth in 2016, followed by luxury department store Harrods with £339 million and Asos at £302 million.
Farfetch may be the UK’s fastest-growing retailer on a percentage basis, but in terms of absolute growth it ranks sixth after it raked in £268 million last year.
Burberry is next on the list, followed by TK Maxx, Screwfix and then Morrisons.
Meanwhile, Amazon has topped the list in the world’s fastest-growing retailer, adding £23.5 billion in revenue — more than next four fastest-growers combined.
Chinese juggernauts JD.com and Alibaba came in at second and 10th respectively, while German discounters Lidl and Aldi also ranked in the top 10 and beat the likes of Walmart, which ranked 9th.
One the other hand, online-only retailers Blue Apron, Farfetch and The Hut Group lead growth among retailers worth under £2.5 billion.
In fact, UK retailers make up over half of the global top 20 fastest-growing retailers under £2.5 billion, with both luxury and value players seeing strong growth.
“In the UK, the growth outliers have defied pessimistic forecasts by either clarifying their market positioning into value or luxury very clearly or by single-mindedly pursuing online growth,” OC&C Strategy Consultants partner and Ted Baker board member Anita Balchandani said.
“There does not appear to be a growth premium for multi-channel retailers, but rather it‘s the online pure-players or the store-led value formats that are finding the biggest growth.
“To find market-beating growth, brands must have a deep understanding of multiple factors, including how to compete with the rising e-commerce ecosystems, how to capitalise on the growth in digital channels and where M&A could confer a strategic advantage.”