ME, Africa retailers set for global role
Dubai, May 2, 2010
The retailers in the Middle East and Africa region are set to play a far more significant role in the global economy in the coming years, according to a new study by Deloitte and Planet Retail.
The duo in their report titled “Emerging from the downturn: Global Powers of Retailing 2010” pointed out that though retailers in Africa and the Middle East have expanded well outside their home countries, a vast majority of their sales (91.8 per cent) still came from domestic operations.
Produced in conjunction with Stores media, the report is the 13th in the annual series 'Global Powers of Retailing.'
As it looks at the future of the globalized retail industry, the report identifies the 250 largest retailers around the world based on publicly available data for the companies, and provides an outlook for the global economy; a discussion of the major challenges facing retailers; and an analysis of market capitalization in the retail industry.
“The report highlights that many emerging-market retailers are rapidly becoming world-class players in their own right,” said Omar Fahoum, chairman and chief executive of Deloitte in the Middle East.
“This indicates that not only are they well equipped to compete with the global giants in their home markets, some are even becoming competitive in other markets. Several emerging-market retailers have already experienced success in neighboring markets, and this is happening whether in the ME, East Asia, Africa, or South America,” he noted.
As per Deloitte report, large emerging markets are set to play a far more significant role globally. 'However, most discussions to date about the consumer markets of emerging nations have focused on the opportunity for global retailers that are based in developed countries,' it said.
'When it comes to the promise of a rising middle class in emerging markets, the lion’s share of attention has for good reason been visited upon China. Yet several other big, emerging markets offer great promise, and not only the other BRICs (Brazil, Russia, and India),' it added.
According to the report, Egypt joins Turkey, Brazil, India, Indonesia, Mexico, Russia, and Vietnam as one of eight specific countries considered likely to play an important role in the further globalization of retailing.
'This phenomenon is likely to become more established in the future as such retailers become regional powerhouses,' it added.
The next step in the evolution of these players, however, will be investments into developed markets. Some of this is starting to take place with retailers based in emerging markets spotting growth opportunities in much more affluent markets.-TradeArabia News Service