Nigeria has been placed among the world’s top 30 developing countries in the 2015 Global Retail Development Index GRDI.
The GRDI published by AT Kearney, places three sub-Saharan countries in the top 30 – Botswana #18, Nigeria #23 and Angola #30 while Zambia, Namibia and Ghana are on the verge of breaking into the top 30 in the near future.
According to the 2015 GRDI, the Sub- Saharan region presents exciting opportunities that are just starting to open up, supported by rising household incomes, fast urbanisation, and a growing middle class.
The development index published since 2001 ranks the top 30 developing countries for retail investment worldwide. The Index analyses 25 macroeconomic and retail-specific variables to help retailers devise successful global strategies to identify emerging market investment opportunities.
Partner at AT Kearney Johannesburg, Bart Van Dijk said multinational retailers continue to push into developing markets. “Regional players, such as South Africa’s Shoprite, Pick n Pay and Woolworths, are using their proximity as a competitive advantage to gain market share in neighbouring markets, as well as spearheading the shift to modern retail in sub-Saharan Africa.”
The 2015 GRDI included a special feature on the prospects for luxury goods in developing markets. AT Kearney Partner and GRDI co-author Hana Ben-Shabat commented, “Luxury remains a relatively bright spot in emerging markets, as the wealthy have proven less vulnerable to economic woes than the general population.”
The feature included an analysis of the 15 leading luxury brands and their presence in the survey’s top 30 countries.
The analysis showed that emerging markets fall into three tiers of luxury development, with different implications for brands looking to enter or expand in these markets.
For the first time since 2010, China was ranked as the top country. China’s retail market is expected to grow to $8 trillion – double the size of the US market – by 2022. Overall,
Asia is a regional winner in 2015, outpacing other regions despite a slowdown in growth.
AT Kearney Partner and co-author of the GRDI, Mike Moriarty stated, “As a result of turbulence in the Middle East, Latin America, and Russia, the past year has seen a more cautious approach to international expansion into some developing markets. However, retailers are taking a longer-term view of emerging markets, with fewer exits, and more targeted investments in areas of growth.”

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