The top 25 global retailers by Market Capitalization (MCap) reported 3% rise in their cumulative MCap in Q4 2021, says GlobalData. According to the leading data and analytics company, Amazon, Home Depot, Costco and Lowe’s accounted for majority of MCap gain.

Keshav Kumar Jha, Business Fundamentals Analyst at GlobalData, comments: “Although Amazon’s online store sales slowed down and its operational costs increased due to labor shortage and rising labor costs, the company’s share price increased around 2% in Q4.

“Amazon’s cloud-computing, advertising and subscriptions services maintained the growth spree with each segment reported over 20% revenue growth in its most recent quarterly report published in October 2021.”

Meanwhile, investors remained sceptical because of the Chinese Government’s scrutiny and regulatory crackdown on organizations. The MCap of major Chinese online retailers – Alibaba, Pinduoduo and JD.com – continued to decline with their cumulative MCap decreased by approximately $125bn in Q4 2021. Another e-commerce player, eBay’s downward slide continued in Q4.

Jha continues: “The continued decline in active buyers on its platform and weak revenue guidance amidst fading sales gain reported during health-crisis dissuaded investors. Revenue and earnings growth in recent quarters was not enough to mollify investors’ concerns related to eBay’s performance.”

Home Depot, Lowe’s, Costco and CVS Health each recorded over 20% quarter-on-quarter (QoQ) increase in their MCap.

The home improvement retailers, Home Depot and Lowe’s seemed to be benefited from higher residential construction output and pandemic-driven increase in do-it-yourself and decorating projects.

GlobalData notes that residential construction output in the US is expected to remain high with steady growth averaging 2% from 2022 to 2025. The sector remains supported by low mortgage rates, strong demand for bigger living spaces and low housing inventory in the market.

The double-digit growth in comparable sales and net earnings kept investors’ interest alive in Costco’s stocks with the company’s share-price increased over 25% in Q4.

CVS Health’s increasing investment in digitalization, alongside an impressive quarterly performance, helped the company retain investors’ interest in its stock. CVS Health’s rival Walgreens Boots Alliance also exhibited strong financial performance. The company also surpassed its COVID-19 vaccination goal in FY2021. Moreover, its Transformational Cost Management Program enabled it to achieve over $2 billion in annual cost savings by FY2021, a year ahead of schedule.