Retail Trends Worldwide

Retail trends worldwide Latin America A strong and expanding middle class, controlled inflation and continued political stability have increased consumer and investor confidence creating a favourable environment for retail development GRDI position: BRAZIL Economic Outlook: Retail spending expected to grow 11% Brazil Growth areas: Luxury malls and airport stores Big brands expanding: Tiffany & co, Zara, Sephora On top again! Future: World Cup 2014 & Olympics 2016 expected to bring money to the region GRDI position: 2 - MADE IN CHILE Economic Outlook: Disposable incomes grew 10% in the last year and look set to continue MADE IN CHILE Growth areas: Malls and Hypermarkets Chile Holding strong ЧЕ Big brands expanding: Hugo Boss, Tommy Hilfiger, Swarovski Future: The Santiago mall, the largest in South America is set to grow even bigger GRDI position: URUG Economic Outlook: Consumer spending continues to increase Growth areas: Uraguay Tourist resort areas and Montevideo Growing & gaining independence Big brands expanding: Gap, Louis Vuitton and Cartier Future: Uruguay looks set to continue to grow and gain further independence from Brazil and Argentina GRDI position: 18 +5 Bogola Economic Outlook: Steady GDP growth and low inflation rate continue to establish favourable conditions LOMEE Colombia Growth areas: Supermarkets Meteoric rise Big brands expanding: Jeronimo Martins, Carrefour, Exito continues Future: Colombia's rise shows no signs of slowdown GRDI position: 21 Economic Outlook: HECHO E Growth in per capita spending, stronger peso and lower interest rates MEXIC Mexico Growth areas: Supermarkets and fashion retail: Big brands expanding: Gap, H&M, Wal-mart Renewed optimism Future: Growing population, expected GDP growth and improving job market paint a bright future GRDI position: 22 2 Economic Outlook: Infrastructure growth, easier trade, increased investment and rising tourism Panama Fast growing Growth areas: Groceries and fashion retail Big brands expanding: Gap, Banana Republic, Vitamin Shoppe economy Future: One of the world's fastest growing economies shows no signs of slowing Asia Asia has seen the effects of the global economic slowdowm but continued consumer spending growth, increased adoption of modern retail and solid economic fundamental keep Asian markets strong GRDI position: MAD SHIN Economic Outlook: Double digit sales growth and rising consumer demand MADE China Growth areas: Malls and e-commerce IN CHIN Big brands expanding: PARKNSHOP, Auchan, RT-Mart Small slip but remains strong Future: Demand for luxury products expected to recover GRDI position: 7 Economic Outlook: Asia's fastest growing economy and a rapidly expanding retail sector. NGOLIA Mongolia Growth areas: Big retail brands and food chains Growing economy Big brands expanding: Carrefour, KFC, Burberry but small market Future: The small market limits growth but economy should strengthen further GRDI position: 13 MADE IN MAL Economic Outlook Steady economic growth, solid retail growth and political stability Malaysia MADE IN MAL. MADE IN M Growth areas: Premium food and high value imports Increasing demands from city living Big brands expanding: Tesco, Uniqlo, Damaini Future: Retail demand will increase as more of the population move to big cities GRDI position: 14. India Economic Outlook: Growth rate slowdown but long term fundamentals remain strong India Growth areas: Fashion retail and e-commerce Slowing but still strong Big brands expanding: Sephora, Christian Louboutin, Starbucks Future: Fashion conscious population driving sales and e-commerce to grow GRDI position: 15 Sri Lanka Economic Outlook: Economy is growing thanks to improving infrastructure and investment Sri Lanka Growth areas: Homeware and luxury goods Big brands expanding: Investment Clarks, Parkson Retail, Giordano pouring in Future: Continued growth expected alongside increased urbanisation and larger working age population GRDI position: NDONESIA Economic Outlook: Reduced consumer optimism and policymakers make it hard for foreign investors NDONESIA Indonesia DONESIA Growth areas: Local retailers Difficult for Big brands expanding: Apple, Uniqlo, Aeon foreign investors Future: Challenges for foreign investors will limit growth Eastern Europe & Central Asia Fertile ground for retailers with growing pockets of wealth 236 RUSS GRDI position: IN MADE Economic Outlook: MADE IN RUSS GDP growth is slowing but retail spending continues to develop MADE Growth areas: Electronics and Luxury Russia IN RUSS Spending slowdown but retail Big brands expanding: Zara, H&M, Chanel Future: Growth has slowed but retail remains strong especially as brands expand into new areas and luxury sees expansion remains strong GRDI position: DE IN TUREET Economic Outlook: Growing economy and increase in disposable income C* Turkey Growth areas: Malls and e-commerce PREMIUN QUALN Very favourable Big brands expanding: for foreign Apple, Christian Louboutin, Dean & Deluca investment Future: Shopping malls and growing luxury demand will lead growth GRDI position: BEORG Economic Outlook Growing economy and rising household incomes Growth areas: Georgia Groceries and local retailers Big brands expanding: Marks & Spencer, Topshop, Miss Selfridge Great potential Future: Ease of doing business will facilitate further growth GRDI position: 10 New ARMENIA Economic Outlook: Rising incomes and improved living standards MEN Armenia Growth areas: Supermarkets and Malls Lots of room Big brands expanding: for growth Accessorize, Pull & Bear, Zara Future: First mall built in 2012 and lots of room for growth from foreign investors KAZAKHE GRDI position: 11A +8 Economic Outlook: Rising incomes, growing economy and increasing household spending 100% Kazakhstan Growth areas: Malls and fashion retailers Big brands expanding: Saks Fifth Avenue, Louis Vuitton, Lacoste Big plans Future: Planned malls will drive retail growth GRDI position: 29 -12 ERBALIA Economic Outlook: Economy continues to grow but spending is still modest Growth areas: Azerbaijan Luxury retail Big brands expanding: Slow growth DKNY, Fendi, Paul Smith Future: Growth is centered around capital Baku Middle East and North Africa The Middle East is leading the charge with increasing tourism and new retail projects QUALIT PREMIUM GRDI position: Economic Outlook: High retail sales, rising consumer confidence and increasing tourism ADE IN U U.A.E Growth areas: Malls and food brands Big brands Big brands expanding: Prada, Dolce & Gabbana & big spenders Future: Even more massive malls are planned with big brands GRDI position: RUWAIT Economic Outlook: Economy shows steady growth and consumer spending is increasing ATAL Kuwait Growth areas: Malls and luxury brands Steady growth Big brands expanding: and luxury growth Victoria's Secret, Prada, Cheesecake Factory Future: The future looks bright with even more big malls GRDI position: 16 2 Economic Outlook: High customer confidence, strong retail growth and increasing tourism Saudi Ārabia Riyadh SAUDI ARABIA Growth areas: Hypermarkets and retail Big brands expanding: Huge potential New Look, Bershka, H&M Future: Lots of potential for further growth GRDI position: 17 Economic Outlook: Slowing retail deelopment yet stable economical development Oman Limited growth Growth areas: Luxury and hypermarkets outside of Big brands expanding: Bobbi Brown, Bath&Body Works, Carrefour the capital Future: Modern retail opportunities still limited outside of the capital TORDAN GRDI position: 20 Economic Outlook: Economy is stable heavily reliant on tourism Jordan KINGDOM O МПЕ) Growth areas: Premium tourism and airport stores Growth focussed Big brands expanding: Marks&Spencer, Asda, Ashley Furniture HomeStore around tourism Future: Tourism continues to drive spend with more airport stores GRDI position: 27 OROGGO Economic Outlook: Recovering from the economic slow down thanks to foreign investment Morocco rowth areas: Foreign investment Shopping centres and hypermarkets Big brands expanding: driving Miu Miu, Prada, Carrefour development Future: Growth expected to be focussed around convenience stores and shopping malls Sub Saharan Africa Young and fast growing population presents lots of opportunity for rapid growth GRDI position: 25 5 Economic Outlook: Nearly 6% GDP growth in 2012 and retail is now the economy's second biggest job provider Growth areas: Malls and groceries Botswana Massive retail growth Big brands expanding: SPAR, Samsung, KFC Future: Shopping malls will spread amidst continuing challenges GRDI position: 26 New MIBIA Economic Outlook: Strong consumer spending and political stability amidst challenges of income equality EK VAR Namibia Regional retailers Growth areas: Malls and groceries Big brands expanding: SPAR, Woolworths, Shoprite show Future: biggest growth Regional brands continue to grow as more malls are built. Cegid brought to you by www.cegid.co.uk Sources The Global Retail Development Index (GRDI) www.atkearney.com RIO DE PADAMA SH Jayau MADE KUWA HASHEM ODDONO RAMIBIE