2009 Global Retail Development Index™
In a year when consumer spending and retail sales are declining in home markets, global expansion to emerging markets increases in importance as a strategy for growth. Unlike most developed markets, GDP in emerging markets is expected to continue to grow, albeit at a slower rate, and populations in many emerging countries are younger, increasingly urban and showing a growing interest in modern retail formats.
The larger, more resilient emerging markets sit atop the 2009 GRDI as they are most likely to lead the economic recovery. India is ranked number one, followed by Russia and China in the eighth annual Global Retail Development IndexTM, a study of retail investment attractiveness among 30 emerging markets.
The 2009 GRDI findings include:
- India tops the list of most attractive emerging markets followed by Russia and China
- The UAE climbs 16 places in the GRDI due to high retail spending per capita and Abu Dhabi's promise of retail opportunity
- Vietnam falls six places due to declines in exports and the resulting decline in GDP, but long-term outlook is still positive
- Leading the 2009 Apparel Index, Brazil is the most attractive emerging market for retail apparel driven by total clothing sales, young population and high annual clothing sales per capita
The 2009 Global Retail Development Index The larger, more resilient emering markets sit atop the 2009 GRDI as they are most likely to lead the economic recovery. [Download PDF]
Read the press release for the 2009 Global Retail Development Index.
Read the press release for the 2009 Retail Apparel Index.
About the Index
Published since 2001, the GRDI helps retailers prioritize their global development strategies by ranking the retail expansion attractiveness of emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness, retail saturation levels, and modern retailing sales area and sales growth. The GRDI focuses on opportunities for mass merchant and food retailers, which are typically the bellwether for modern retailing concepts in a country.
Recent Media Highlights
Market Watch: Vietnam 2 February 2010 — Kidscreen Laura Gurski, A.T. Kearney partner, explains the ranking of Vietnam in the firm's Global Retail Development Index.
Emerging Markets 10 August 2009 - Mass Market Retailers Global expansion to emerging markets has become more important as a growth strategy for retailers, plus the recession is making it more attractive.
Editorial Comment 22 June 2009 - The Times of India Since the GDRI is geared to helping retailers take investment decisions on the basis of criteria like economic and political risks, the report also suggests a broader interest in the Indian economy.
India most attractive market for retail investment: Kearney 17 June 2009 - Business Standard Providing good growth potential for global retailers amid the economic slowdown, India has emerged as the most alluring market for investment in the retail sector, surpassing the likes of China, Russia and the United Arab Emirates.
Recovery to spark influx of foreign firms 17 June 2009 - Viet Nam News The number of foreign companies moving to Viet Nam to seek business opportunities is likely to increase as the national economy shows signs of recovery, business leaders have said.
Romania 23rd most attractive country for retail 17 June 2009 - Wall-Street Romania Romania's retail segment scored 23rd out of 185 countries by the level of interest it arouses in foreign investors, down one position versus last year, as an impressive number of stores were closed, shows a study by the global consulting firm AT Kearney, cited by NewsIn.
Bulgaria ranks 21st among 30 global emerging markets in retail 17 June 2009 - emportal The A.T. Kearney study, which gauges markets by factors such as saturation, attractiveness and country risks, placed Bulgaria five spots lower than last year, trailing Turkey but still ahead of Romania and Croatia.
Emerging Global Hot Spots for Retailers 16 June 2009 - BusinessWeek Russia, U.A.E. and Saudi Arabia are somewhat more surprising countries to find on this list than India and China.
Western Retailers May Find Growth in Emerging Markets 16 June 2009 - WSJ Blogs: Real Time Economics A report by A.T. Kearney finds that the crisis in real estate may have a silver lining for recession-battered retailers in the West: lower rents in the developing world.
U.S. retailers should look beyond borders, study says 15 June 2009 - guardian.co.uk Scattered throughout the index are countries where political, social or financial uncertainties could be problematic for U.S. brands already struggling at home. That is why Deepa Bangaru, one of the study's authors, stressed there are many ways to enter a foreign market.
India top retail destination for investors: A.T. Kearney 15 June 2009 - Thaindian.com Added Michael Moriarty, also a partner and study co-leader: “Countries throughout Asia are well positioned for an early recovery from the economic crisis as domestic demand is holding up well, GDP growth continues and trillions of dollars of sovereign reserves are providing governments and state banks with tools for action.”
U.S. retailers should look beyond borders, study says 15 June 2009 - Reuters The road to recovery for U.S. retailers may lead overseas. A.T. Kearney, the international consulting firm, says in a new study that lower sales and tight consumer spending at home are a sign that retailers should look to emerging markets for growth.
India Tops Survey of Emerging Markets for International Retailers 15 June 2009 - Wall Street Journal - USA ... a new AT Kearney study. India topped the rankings of the annual study by the US management consulting company, climbing up from number two a year ago...
Past Reports
The 2008 Global Retail Development Index Vietnam has ended India's three-year reign as the most attractive emerging market destination for retail investment. [DOWNLOAD PDF]
2007 Global Retail Development Index Now in its sixth year, the GRDI identifies windows of opportunity to help retailers make strategic investments in exciting new markets. [READ ARTICLE]
2006 Global Retail Development Index As the pace of globalization quickens so does the race into new markets. But success in this race does not necessarily go to the swiftest. Rather, it goes to companies that make the right moves at the right times. Location is still important, but timing is the name of this retail game. [READ ARTICLE]
2005 Global Retail Development Index The global retail game is changing. While players surged into new markets in 2004, this year they are more focused on rebalancing their positions. [READ ARTICLE]
2004 Global Retail Development Index After a pullback in 2003, global retail is back on track for growth. The most significant growth is taking place in emerging markets where about two-thirds of global retailers interviewed are planning to increase their activities this year. [READ ARTICLE]
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