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Retail in Africa: Still the Next Big Thing

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2015 African Retail Development Index Retail in Africa: Still the Next Big Thing 2015 African Retail Development Index


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2015 African Retail Development Index Selecting countries for retail expansion in Africa is more difficult than ever. There are no longer any safe bets— if there ever were before.


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2015 African Retail Development Index A slowing Chinese economy and lower oil prices have put pressure on African economies that already had suffered from credit crises related to decreased exports.


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2015 African Retail Development Index Many African countries are still heavily dependent on their oil and gas income (Nigeria, Angola, and Mozambique) causing the growth of the middle class to slow.


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2015 African Retail Development Index Gabon, with Africa’s highest GDP per capita, is ranked #1 in the 2015 ARDI.


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2015 African Retail Development Index Botswana (#2) and Angola (#3) move up the rankings with strong, fastgrowing economies.


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2015 African Retail Development Index Although South Africa (#6) is a saturated market, it ranks highly based on the strength of its infrastructure and consumers.


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2015 African Retail Development Index The 2015 ARDI segments the 15 ranked countries into three main stages: 1) basic, 2) developing, and 3) mature.


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2015 African Retail Development Index 1 Retailers with basic offerings (such as cash-and-carry) should target larger countries and cities in basic markets, as scale is important. BASIC


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2015 African Retail Development Index 2 Retailers with a wider offering (hypermarkets, fashion, furniture, fresh, homeware) should target developing countries, as scale is less important. DEVELOPING


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2015 African Retail Development Index 3 Southern Africa’s maturing markets are still a solid point of entry for retailers with differentiated offerings. MATURE


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2015 African Retail Development Index Advice for retailers entering Africa: Do your homework and adapt to local needs and circumstances.


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


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