New York City -- Brazil jumped to first place in A.T. Kearney’s annual ranking of the top developing economies for global retail expansion, followed by Uruguay and Chile respectively.
The 10th annual Global Retail Development Index reflects the dramatic changes that have taken place in global markets, and the varying impacts they have had on different emerging economies. Notably, countries in South America, which fared well during the recession, posted an impressive 6% growth in 2010.
Here are the Top 10 countries for global retail expansion, as ranked by GRDI:
- Saudi Arabia
The key learning from an analysis of the last 10 years is that global retail expansion is a portfolio game: Retailers must have an optimal mix of countries, formats and operating models to succeed, according to the report.
"The past 10 years of experience in global retailing shows that there is no ‘one size fits all’ formula for global expansion,” said Hana Ben-Shabat, A.T. Kearney partner and co-leader of the study. “Different countries are at different levels of development and have different risk/return profiles, which require retailers to tailor their approaches accordingly and assemble a portfolio of markets to balance short-term risk with long-term growth aspirations."
A.T. Kearney’s Global Retail Development Index ranks 30 emerging countries on the urgency for retailers to enter the country. The scores are based on 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 2011 GRDI is available at grdi.atkearney.com.