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AT Kearney Tracks Global Retail Development

Posted: June 12, 2012

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Latin America’s expanding, dynamic retail sector and strong economic growth has driven strong results with seven countries included in the GRDI this year. Many retailers have entered Latin America in the last few years.

Retail sales per capita in Brazil (#1 in the index) have grown 12% per year for the past four years to reach $5,514, the third largest of the countries ranked in the GRDI. The retail market size increased 15% last year, and consumer spending has increased by nine percent per year since 2007. In 2011, retail sales accounted for 70% of Brazil’s consumer spending.

Chile (#2 in the index) has one of the most sophisticated and competitive retail markets in the region. The country is one of Latin America’s fastest-growing economies, with expected GDP growth of 6.2% in 2012. Additionally, inflation is low and country risk is low.

China moved up in the 2012 GRDI, ranking #3. The country’s future retail growth remains positive, with double-digit annual sales growth expected. However, inflationary pressures are driving up rents 30% per year, and labor costs are growing 15% a year. China is one of the world’s largest luxury goods markets, with more than 100 brands active in the country. 

Ranked #4 in the index, Uruguay is becoming a retail destination. Despite its relatively small local population, Uruguay’s high urbanization and strong consumption levels are attractive to retailers. The economy is progressing—annual GDP growth has been 6% since 2007 and unemployment is at an all-time low.