SA RETAILERS EXPAND INTO AFRICAN MARKETS

AT KEARNEY’S Global Retail Development Index (GRDI) 2019 noted that South African retailers, such as

Pick n Pay and Massmart Holdings, were expanding into African retail markets, particularly Ghana, which was now ranked as the top African country on the index. South Africa itself does not feature in the Top 30 countries. South African retailers have not confined themselves to the African continent, as Makro has entered the Colombian market. The 2019 GRDI ranks 30 developing countries out of a universe of 200 nations based on three criteria. These are a “country risk” score above 35 points, having a population of at least five million, and a per capita gross domestic product of more than $3 000 (R43 060). The report noted that economic development and trade policy remained the largest factors in shaping retail growth in consumer markets. It said that while social media and e-commerce fuel the evolution of global consumers, national, regional and local realities, such as internet connectivity and the availability and cost of labour, continue to shape retail development globally. A key theme in this year’s report was the “arrival of the Middle East and Africa”, as 10 of the top 30 countries fell into this category, suggesting that emerging economies are maturing. “Driven by government-led economic reforms, a large and digitally connected youth consumer segment, and growing purchasing power, economies in the region have made significant gains in our rankings and have caught the attention of leading retailers,” the report said.