Global Retail Development Index identifies MENA as growth hot spot for international and regional retailers
A.T. Kearney index places eight MENA countries among top 21 retail growth opportunities globally
Dubai (22 June 2010) — According to the 9th annual Global Retail Development Index (GRDI) study from management consulting firm A.T. Kearney, the Middle East and North Africa (MENA) region exhibits the most exciting retail growth opportunities today for international retailers. Eight countries in the MENA region are among the GRDI’s top 21: Kuwait (2), Saudi Arabia (4), United Arab Emirates (7), Tunisia (11), Egypt (13), Morocco (15), Turkey (18) and Algeria (21) and most of these countries have increased in attractiveness from last years index.
The study says smaller countries including Kuwait, represent increasingly attractive opportunities for international retail expansion. Fiscal stimuli in some MENA markets and the region’s rich oil supply have contributed to the positive outlook. The MENA region appears poised for fast recovery from the global turbulence and its retail market has proven resilient. Retail sales are rising, driven by higher disposable incomes, urban population growth, a strengthening middle class and infrastructure investments.
“The attractiveness of the MENA retail markets provides ample opportunities for regional as well as global retailers,” said Martin Fabel, Partner, A.T. Kearney Middle East. “Our research stresses that establishing operations in a portfolio of countries both small and large offers the best path to global success for retailers.”
In addition to Kuwait, the continued strength of the UAE and Saudi Arabia places these markets among top 10 most attractive retail destinations globally. This high rank highlights the abundant opportunities for further in-country expansion and the ability to leverage regional experiences across the Gulf.
As part of this year’s GRDI, A.T. Kearney also surveyed 60 retail executives from around the world to identify emerging competitive trends and confirm the GRDI rankings. The study revealed that expansion is also on the agenda for many emerging market retailers - ninety-two percent of respondents indicated they are looking to expand beyond their home market, with most expecting to expand into the BRIC countries. Even though the UAE has moved slightly from 4th to 7th place in this year’s GRDI, it is the only Middle East destination mentioned by the surveyed retail executives as an expansion destination.
“The UAE has been a hot spot for several years and is now entering the next level of maturity. Retailers are looking to build on their stronghold in the UAE to diversify their portfolio across the region and will continue to actively invest in the attractive markets of Saudi Arabia and Kuwait.” said Dan Starta, Partner and Managing Director, A.T. Kearney Middle East. “Retail investors should build on global best practices and lessons learned in the region, but understanding the unique differences of each country will be critical.”
About A.T. Kearney
A.T. Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Since 1926, we have been trusted advisors on CEO-agenda issues to the world’s leading corporations across all major industries. A.T. Kearney’s offices are located in major business centers in 37 countries. From our fast growing Middle East offices in Abu Dhabi, Bahrain, Dubai and Riyadh, A.T. Kearney actively contributes to the operational excellence and profitable growth of the private sector industries and services in the region as well as the agility of governments. For more information, visit www.atkearney.com or follow A.T. Kearney Middle East on Twitter profile: AT_Kearney_ME.
About the Global Retail Development Index
Published since 2002, the GRDI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries. The index ranks 30 emerging countries based on a set of 25 variables across four primary categories: economic and political risk; market attractiveness; market saturation; and time pressure (difference or addition between gross domestic product and modern retail area growth). A detailed analysis and country-specific results for the 2010 GRDI is available at www.grdi.atkearney.com.
A.T. Kearney Global Retail Development Index, 2010
|
Country
|
2010
Rank
|
2009
Rank
|
Change
|
|
China
|
1
|
3
|
+2
|
|
Kuwait
|
2
|
N/A
|
N/A
|
|
India
|
3
|
1
|
-2
|
|
Saudi Arabia
|
4
|
5
|
+1
|
|
Brazil
|
5
|
8
|
+3
|
|
Chile
|
6
|
7
|
+1
|
|
United Arab Emirates
|
7
|
4
|
-3
|
|
Uruguay
|
8
|
N/A
|
N/A
|
|
Peru
|
9
|
18
|
+9
|
|
Russia
|
10
|
2
|
-8
|
|
Tunisia
|
11
|
14
|
+3
|
|
Albania
|
12
|
N/A
|
N/A
|
|
Egypt
|
13
|
15
|
+2
|
|
Vietnam
|
14
|
6
|
-8
|
|
Morocco
|
15
|
19
|
+4
|
|
Indonesia
|
16
|
22
|
+6
|
|
Malaysia
|
17
|
10
|
-7
|
|
Turkey
|
18
|
20
|
+2
|
|
Bulgaria
|
19
|
21
|
+2
|
|
Macedonia
|
20
|
N/A
|
N/A
|
|
Algeria
|
21
|
11
|
-10
|
|
Philippines
|
22
|
25
|
+3
|
|
Dominican Republic
|
23
|
N/A
|
N/A
|
|
South Africa
|
24
|
N/A
|
N/A
|
|
Mexico
|
25
|
12
|
-13
|
|
Colombia
|
26
|
28
|
+2
|
|
El Salvador
|
27
|
29
|
+2
|
|
Romania
|
28
|
23
|
-5
|
|
Bosnia and Herzegovina
|
29
|
N/A
|
N/A
|
|
Guatemala
|
30
|
N/A
|
N/A
|
About Our Experts
Dan Starta
Partner & Managing Director
Dr. Martin Fabel
Partner
|
