5 Most Valuable Retail Companies In The World

In this article, we discuss 5 most valuable retail companies in the world. If you want to see more companies in this selection, check out 15 Most Valuable Retail Companies In The World. 

5. Alibaba Group Holding Limited (NYSE:BABA)

Market Capitalization as of January 31: $293.886 Billion

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese internet retail company that provides technology infrastructure and marketing reach to merchants, brands, and retailers. The company operates through seven segments – China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. Alibaba Group Holding Limited (NYSE:BABA) is one of the most valuable retail companies worldwide, with a market capitalization of nearly $294 billion. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

4. The Home Depot, Inc. (NYSE:HD)

Market Capitalization as of January 31: $328.495 Billion

The Home Depot, Inc. (NYSE:HD) was incorporated in 1978 and is based in Atlanta, Georgia, and the company operates as a home improvement retailer. At the end of January 2022, The Home Depot, Inc. (NYSE:HD)’s annual revenue stood at $151.15 billion, up from $132.1 billion at the end of January 2021. The Home Depot, Inc. (NYSE:HD) is one of the most valuable retail companies in the world. 

Matrix Asset Advisors made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2022 investor letter:

“During the quarter, we re-established a position in The Home Depot, Inc. (NYSE:HD) sold earlier this year, after the shares declined sharply on big picture concerns about a softer housing market and lower consumer spending. We believe that HD is a very well-managed company, positioned to continue showing good profits even as the economy decelerates. The products it carries in inventory are in year-round demand from contractors and homeowners wanting to maintain and improve their homes. The company has historically been shareholder friendly, repurchasing shares and increasing the dividend, most recently by 15% earlier this year. On September 30, HD’s current dividend yield was 2.8%.”

3. Walmart Inc. (NYSE:WMT)

Market Capitalization as of January 31: $383.674 Billion

Walmart Inc. (NYSE:WMT) engages in retail and wholesale operations worldwide. The company operates through three segments – Walmart U.S., Walmart International, and Sam’s Club. Walmart Inc. (NYSE:WMT) runs supercenters, supermarkets, hypermarkets, cash and carry stores, discount stores, membership-only warehouse clubs, and ecommerce websites. It is one of the most valuable retail companies in the world. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:

“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco have been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”

2. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY)

Market Capitalization as of January 31: $440.83 Billion

LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) was incorporated in 1923 and is headquartered in Paris, France. It operates as a luxury goods retailer that offers champagne, wines, spirits, fashion and leather products, perfumes, and cosmetics. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) reported record revenue for 2022 and indicated confidence on the year ahead of luxury sales despite inflationary pressure on consumers across the globe.

Here is what  Distillate Capital has to say about LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMUY) in its Q3 2022 investor letter:

“After rebalancing, Distillate’s International FSV strategy offers a higher free cash flow yield both to market cap and enterprise value, and has substantially more stable fundamentals and less leverage than the index. The largest new position is LVMH Moët Hennessy – Louis Vuitton, Société Européenne (NYSE:LVMUY), where estimated free cash ϲows are up year-to-date while the stock is down.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Market Capitalization as of January 31: $1.04 Trillion

Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions through digital and physical stores in North America and internationally. Amazon.com, Inc. (NASDAQ:AMZN) is the most valuable retail company in the world, with market capitalization exceeding $1 trillion. 

Here is what Distillate Capital has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“The fund’s relative outperformance occurred despite a nearly 2.5% headwind from being underweight the energy and utilities sectors where cash flow instability and leverage tend to limit our holdings domestically. By individual stock, the largest contributors to relative outperformance were unowned positions in Amazon.com, Inc. (NASDAQ:AMZN) and Tesla which declined around 50% and 65% during the year, respectively.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 15 Undervalued Defensive Stocks for 2023 and 15 Most Undervalued Value Stocks To Buy.