Retail in Africa: Still the Next Big Thing | A.T. Kearney

Retail in Africa:Still the Next Big Thing2015 African Retail Development Index

2015 African Retail Development Index

Selecting countriesfor retail expansionin Africa is moredi�icult than ever.There are no longerany safe bets—if there ever werebefore.


A slowing Chineseeconomy and loweroil prices have putpressure on Africaneconomies thatalready had su�eredfrom credit crises relatedto decreased exports.


Many Africancountries are stillheavily dependenton their oil and gasincome (Nigeria, Angola,and Mozambique)causing the growth ofthe middle class to slow.


Gabon, withAfrica’s highestGDP per capita,is ranked #1 inthe 2015 ARDI.


Botswana (#2)and Angola (#3)move up therankings withstrong, fast-growingeconomies.


Although South Africa (#6)is a saturated market,it ranks highlybased on thestrength of itsinfrastructureand consumers.



The 2015 ARDI segments the 15 rankedcountries into three main stages:1) basic, 2) developing,and 3) mature.


Retailers with basic o�erings(such as cash-and-carry)should target larger countriesand cities in basic markets,as scale is important.

1

BASIC


Retailers with a wider o�ering(hypermarkets, fashion, furniture,fresh, homeware) should targetdeveloping countries,as scale is lessimportant.

2

DEVELOPING


3 Southern Africa’s maturingmarkets are still a solidpoint of entry forretailers withdi�erentiatedo�erings.

MATURE

Advice for retailers entering Africa:Do your homework andadapt to local needs andcircumstances.


For more informationabout A.T. Kearney’s 2015African Retail DevelopmentIndex, please visit:www.atkearney.com/consumer-products-retail/african-retail-development-index

https://www.atkearney.com/consumer-products-retail/african-retail-development-index/2015?utm_source=SlideShare&utm_medium=Social&utm_content=SlideShow1&utm_campaign=ARDI_2015

Retail in Africa: Still the Next Big Thing | A.T. Kearney

Retail

Transcript of Retail in Africa: Still the Next Big Thing | A.T. Kearney