Page 21 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes new markets, such as the entry by the ‘hard discount’ supermarket operators (Aldi, Netto, Lidl)
into the UK in the early 1990s and Vishal Megamart, Big Bazar, Shoppers’ Stop in India in the late
1990s.

Did u know? Brazil is now ranked as the top developing economy for global retail
expansion, according to the 10th annual Global Retail Development Index (GRDI) released
last week by A.T. Kearney.

Notes A.T. Kearney Global Retail Development Index, 2011
A.T. Kearney says the 2011 GRDI ranking mirrors the dramatic changes that have taken
place in global markets, and the varying impacts they have had on different emerging
economies.
For example, South American countries have fared well during the recession, posting an
impressive 6 percent GDP growth in 2010. In addition to Brazil’s top ranking, three other
South American countries made the Top 10 of the GRDI: Uruguay, Chile and Peru. Brazil
jumped to first place from no.5 in last year’s GRDI. Likewise, Uruguay climbed up the
rankings to no.2 from no. 8 last year, and Chile rose from #6 in 2010 to no.3 this year.
The Middle East and North Africa also ranked highly in the 2011 GRDI. Political unrest in
countries like Egypt and Tunisia are undoubtedly current challenges to growth, but Kuwait,
Saudi Arabia, and the UAE (all top 10 GRDI markets in 2011) have not experienced the
turmoil of some of their neighbors and are expected to remain stable going forward.

Here is a complete list of the Top 10 GRDI markets in 2011:
1. Brazil
2. Uruguay
3. Chile

4. India
5. Kuwait
6. China
7. Saudi Arabia
8. Peru

9. U.A.E.
10. Turkey
Over the past ten years, the GRDI study has shown that global retail expansion is a portfolio
game. Retailers must have an optimal mix of countries, formats and operating models to
succeed.

Self Assessment

Fill in the blanks:
12. ........................................ is the world’s biggest retailer.

13. ........................................ is at the top of GRDI.

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