African Retail Development Index: Retail potential on African continent confirmed

September 8, 2015 5:56 pm0 comments by:

JOHANNESBURG, South-Africa, September 8, 2015/ — The 2015 African Retail Development Index has been released. It reveals the most attractive developing markets across Africa for expansion. It discusses the growth in the middle class in Africa, increased consumerism, the spread of malls, land being taken up for development for retail purposes and Sub-Sahara’s young and connected middle class that is growing fast and still deciding on its favourite brands.

The report reveals :
• The African Retail Landscape – what the retail market in SSA looks like today
• ARDI 2015 ranking incl. South Africa’s ranking and the opportunities for its retailers in the rest of SSA
• Right Approaches to Africa – which countries provide the best opportunities and how does this link to retail maturity stages?

With Sub-Saharan African brimming with potential being one of the few markets with annual GDP growth of more than 5%. AT Kearney’s 2015 African Retail Development Index (ARDI) reconfirms the potential of many nations throughout Africa—not just oft-discussed markets like Nigeria and Ghana, but also small, dynamic markets such as Gabon, the ARDI’s top-ranked market and home to Sub-Saharan Africa’s highest GDP per capita, and also mid-sized and fast-growing countries such as third-ranked Angola.
The report begins with a look at entry strategies for Sub-Saharan Africa, followed by an in-depth analysis of the top 14 countries.

The authors are available this week to share their views of the report & insights on:
• The outlook for the retail sector for 2015/2016
• South Africa’s retail sector vs other emerging markets such as India, Brazil, etc

The 2015 ARDI ranks the top 15 Africa countries according to market attractiveness for retail expansion. The ARDI is a useful framework for retailers because it not only identifies the markets in Africa most attractive for retail expansion today, but those that offer the most potential.

The Index identifies three distinct differences in stages of retail advancement in the Top 15 countries—basic, developing, and mature—with only Southern Africa falling into the mature bracket. They are characterized by having a formal shopping culture, international and growing private label exposure, innovation, and stable and transparent pricing. In this market, the key purchase drivers are convenience and quality.

Mirko Warschun, AT Kearney partner and leader of the firm’s consumer industries and retail practice for Europe, Middle East, and Africa (, noted that Nigeria (#4) moved down the index, despite its market size and room for growth. “Nigeria has massive room for growth in formal retail with 25 new shopping centres in development,” said Warschun. “True spending, however, remains comparatively low as the ‘true middle class’ is a lot smaller relative to the smaller countries ranked higher.”

With its tremendous potential and strong economic projections, however, Nigeria is still a market to consider.

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