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.

2015 African Retail Development Index

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

2015 African Retail Development Index

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

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

2015 African Retail Development Index

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

2015 African Retail Development Index

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

2015 African Retail Development Index

2015 African Retail Development Index

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

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

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

2015 African Retail Development Index

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.

2015 African Retail Development Index

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