Top retail brands are not going to be scouting for real estate on Fifth Avenue. Instead, they’re headed straight to Uruguay, Chile and Qatar, among other emerging markets.
According to a study published by AT Kearney, a Chicago-based management consulting firm, retailers plan to not only be patient, but also to explore the Middle East and China for growth opportunities even though the slump in oil prices have hurt the economies.
“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,” Mike Moriarty, co-author of the report, told CNBC. “However, retailers are taking a longer-term view of emerging markets, with fewer exits and more targeted investments in areas of growth.”
Here are the Top 10 destinations where retailers are shopping for customers:
7. United Arab Emirates
The study found Asia’s retail growth, although slowing in itself, outpaced other regional markets. China, which has climbed up to the top spot for the first time in five years, is finally inching closer to increasing domestic demand and reducing its dependency on foreign markets. Its retail market is expected to grow to $8 trillion by 2022. Additionally, Asia’s eCommerce market, valued at $525 billion, overtook North America, valued at $483 billion. The study noted that if the pace is consistent, with better Internet penetration, Asia’s eCommerce retail sales could grow as much as 25 percent per year.
Apart from the top ranked countries, a few surprising candidates included countries in the Sub-Saharan Africa such as Botswana, Angola and Nigeria in the Top 30.
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