retail in africa: still the next big thing | a.t. kearney
TRANSCRIPT
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Retail in Africa:Still the Next Big Thing2015 African Retail Development Index
2015 African Retail Development Index
![Page 2: Retail in Africa: Still the Next Big Thing | A.T. Kearney](https://reader037.vdocument.in/reader037/viewer/2022102317/58f1d51d1a28ab152f8b4601/html5/thumbnails/2.jpg)
Selecting countriesfor retail expansionin Africa is moredi�icult than ever.There are no longerany safe bets—if there ever werebefore.
2015 African Retail Development Index
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A slowing Chineseeconomy and loweroil prices have putpressure on Africaneconomies thatalready had su�eredfrom credit crises relatedto decreased exports.
2015 African Retail Development Index
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Many Africancountries are stillheavily dependenton their oil and gasincome (Nigeria, Angola,and Mozambique)causing the growth ofthe middle class to slow.
2015 African Retail Development Index
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Gabon, withAfrica’s highestGDP per capita,is ranked #1 inthe 2015 ARDI.
2015 African Retail Development Index
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Botswana (#2)and Angola (#3)move up therankings withstrong, fast-growingeconomies.
2015 African Retail Development Index
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Although South Africa (#6)is a saturated market,it ranks highlybased on thestrength of itsinfrastructureand consumers.
2015 African Retail Development Index
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2015 African Retail Development Index
The 2015 ARDI segments the 15 rankedcountries into three main stages:1) basic, 2) developing,and 3) mature.
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2015 African Retail Development Index
Retailers with basic o�erings(such as cash-and-carry)should target larger countriesand cities in basic markets,as scale is important.
1
BASIC
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2015 African Retail Development Index
Retailers with a wider o�ering(hypermarkets, fashion, furniture,fresh, homeware) should targetdeveloping countries,as scale is lessimportant.
2
DEVELOPING
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2015 African Retail Development Index
3 Southern Africa’s maturingmarkets are still a solidpoint of entry forretailers withdi�erentiatedo�erings.
MATURE
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Advice for retailers entering Africa:Do your homework andadapt to local needs andcircumstances.
2015 African Retail Development Index
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For more informationabout A.T. Kearney’s 2015African Retail DevelopmentIndex, please visit:www.atkearney.com/consumer-products-retail/african-retail-development-index