Home » Retailing

632 posts categorized "Retailing"

June 29, 2015

Challenges for Amazon in Mexico

Amanda BoulierAnalyst Insight by Amanda Boulier - Research Analyst

View Amanda Boulier's profile on LinkedIn

With a distribution centre reportedly bought and several high profile hires made, evidence is mounting that Amazon is preparing to launch full e-commerce operations in Mexico in the coming months, despite the absence of an official announcement. Amazon has surely learned a lot about international expansion into emerging markets from its experiences in India and China, but Mexico still presents a number of challenges, such as payments, delivery and brand awareness, that Amazon will need to overcome for a smooth entry into Latin America.

Continue reading "Challenges for Amazon in Mexico" »

June 28, 2015

Cities Hotbed for Internet Retailing Growth

Kasparas AdomaitisAnalyst Insight by Kasparas Adomaitis - Senior City Analyst

Over 2014-2019, internet retailing is expected to grow by 76% to reach US$1.5 trillion in turnover (in constant value terms), while traditional store-based retailing will grow considerably more slowly at 11% to almost US$14.6 trillion. However, internet retailing seems set to take off only in markets where conditions are right. Specifically, the share of internet retailing in total retailing sales rises above 5% only in countries with high rates of household access to the internet – namely, in countries where household ownership of internet-enabled PCs exceeds 70%.

Chart 1. Access to Internet and Role of Internet Retailing in 80 Major Countries of the World, 2014

Internet-Retailing

Source: Euromonitor International 

Continue reading "Cities Hotbed for Internet Retailing Growth" »

June 24, 2015

The Royal Ahold and Delhaize Merger: How to Survive in the US Grocery Retail Market

Tim BarrettAnalyst Insight by Tim Barrett - Retailing Analyst

View Tim Barrett's profile on LinkedIn

On 24 June 2015, Royal Ahold NV and Delhaize Group announced their intent to merge, a move which is indicative of the increased competition in modern grocery retail and the need to compete on price. The combined company would have had a 4.6% market share of grocery sales with over 2,100 outlets in the US in 2014. Despite being international grocery chains, both generate around 60% of their total sales in US, making it a very important market. Their combined share will assist the new company in hammering out efficiencies by giving them the ability to limit redundant costs and utilize their increased bargaining power with suppliers to keep costs low wherever possible—both of which are essential to survive in a market that is focused mainly on low prices.

Continue reading "The Royal Ahold and Delhaize Merger: How to Survive in the US Grocery Retail Market " »

June 16, 2015

A win-win for Hudson Bay Company and Metro AG But Challenges Exist

Michelle GrantAnalyst Comment by Michelle Grant - Head of Retailing Research

View Michelle Grant's profile on LinkedIn

Hudson Bay Company announced its purchase of the department store banner, Galeria Kaufhof, from Metro Group for Euro2.83 billion, including debt, on 15 June 2015.

Overall, this is a good move for Metro AG and Hudson Bay Company.  Kaufhof only accounted for 5% of Metro’s sales in a fading channel with sales by department stores in Germany expected to decline by 2.3% over the next five years.  The proceeds from the sale will help pay down debt, which in turn, should free up more resources to help Metro’s cash and carry and electronics businesses compete successfully in hypercompetitive markets.  Hudson Bay gets a strong asset in the German department store channel from which to launch its European operations with the financing of the deal coming from sales of the prime German real estate assets.  But the company does face an uphill challenge for sales growth due to a shift away from the department store channel in Germany and stiff competition from apparel and footwear specialists, such as H&M.  To spur growth for the Galeria Kaufhof banner, Hudson Bay will need to have a deep understanding of how Germans shop, execute well on a multi-channel retailing experience and stock merchandise at prices that can compete in a fierce competitive environment.

Continue reading "A win-win for Hudson Bay Company and Metro AG But Challenges Exist" »

June 13, 2015

Looking Beyond the Obvious in Sub-Saharan Africa, Part 2: The Rise of E-commerce

Bernadette-KissaneAnalyst Insight by Bernadette Kissane - Apparel and Footwear Associate

View Bernadette Kissane's profile on LinkedIn

The building blocks for future developments in e-tailing are emerging in sub-Saharan Africa, as a growing middle class and young population create a demand for products that store-based retail simply cannot meet, due to a lack of shopping malls and gridlocked cities. Advancements have been most notable in Nigeria where a surge in telecom investments and smartphone purchases has fuelled growth in internet usage from 20% in 2009 to 41% in 2014. Furthermore, according to Euromonitor International data, Nigeria boasts the largest online market for apparel and footwear in the region, which is expected to grow from US$104 million in 2014 to US$1,077 million in 2019, mainly due to the dynamic development of trusted e-tailers, Jumia and Konga.

Meanwhile, South Africa, the region’s largest apparel market overall, is expected to record a much slower pace of growth in internet retailing from US$50 million in 2014 to US$73 million in 2019. This highlights consumer preference to use the internet as a research tool, and purchase items in store as a result of the mature formal retail environment.

Continue reading "Looking Beyond the Obvious in Sub-Saharan Africa, Part 2: The Rise of E-commerce" »

May 27, 2015

Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing

Bernadette-KissaneAnalyst Insight by Bernadette Kissane - Apparel and Footwear Associate

View Bernadette Kissane's profile on LinkedIn

For many fashion brands, South Africa has been the stepping stone into the sub-Saharan region due to the attractive economic growth and affluent market. But has the time now come to start expanding north? According to Euromonitor International, sales through apparel and footwear specialists in Nigeria and Kenya are expected to grow by 93% and 57% in constant 2014 value terms, respectively, from 2014 to 2019, highlighting growth opportunities outside the wealth-hub of the region. This is the first of a 2-part series of articles that sets out to examine growth drivers in the region, as well as the competitive landscape in store-based retailing; the second article will review dynamic growth in e-commerce.

Continue reading "Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing" »

May 24, 2015

Whole Foods to Open Low-Cost Chain

Grocery-aisle-banner

Listen as MP3

Whole Foods recently announced that the company would be launching a low-cost variant of its existing brand targeted at millennial consumers.  This move is in line with overall trends in the US grocery market, where discount grocers have seen rapid growth over the last few years.  This podcast goes in-depth into the competitive landscape and potential strengths for this new brand.  Listen for complete insights.

Continue reading "Whole Foods to Open Low-Cost Chain" »

May 13, 2015

A Brighter Future for RadioShack in Mexico

Amanda BoulierAnalyst Insight by Amanda Boulier - Research Analyst

View Amanda Boulier's profile on LinkedIn

On March 27, Grupo Gigante announced it would be purchasing the approximately 250 outlets of RadioShack México for a total of US$32 million dollars from RadioShack Corp. the owner of the electronics specialist chain in the United States and elsewhere.  Grupo Gigante previously had partial ownership of the retailer in Mexico but sold its stake in the joint venture in 2008 in the context of a challenging macroeconomic outlook.

RadioShack’s struggles, ultimately leading to bankruptcy and the closing of thousands of outlets in the US, are well-known.  In recent years the retailer found itself with an overburdened geographic footprint and an underdeveloped internet retailing presence.  RadioShack México, however, operates a smaller network of stores in a retailing environment in which internet sales are still nascent.  This gives the chain a chance to learn from its US mistakes and develop a proactive strategy of e-commerce investment and controlled outlet expansion before the market dynamics in Mexico evolve, in contrast to the reactionary position the brand adopted in the US.

Continue reading "A Brighter Future for RadioShack in Mexico" »

May 12, 2015

Brazil's Business Environment: Consumption in Economic Slowdown

250_brazilBusiness-v1.0On the surface, Brazil looks like an attractive market. It is the seventh largest global economy and has a population of 200 million, with high consumer expenditure and high demand for commodities.
But Brazilians are spending less, industrial confidence is deteriorating, and inflation is rising, meaning a future of slow growth and economic recovery.

Consumer goods companies operating in Brazil need to adapt their strategy to integrate the global market place. What are the reasons behind this slowdown and how can organisations work it to their advantage? 

Download our white paper today to learn:

› How Brazil’s rapid currency depreciation has affected its economy and consumers 

› Which consumer industries are slowing down and which have new opportunities

› Why the middle class is changing Brazil’s economic landscape

Download-Now

April 25, 2015

The Retailing Environment in Latin America

This video discusses the key retailing trends in Latin America including discounters in Chile, cash and carry in Argentina, co-branded finance cards in Mexico, and Internet retailing in the whole region.  Watch the video for full insights into these trends and more.

Subscribe

 RSS Feed

Receive New Posts via Email:

 

Join us on...


Filter by Category

Filter by Geography

Filter by Industry

Recent Posts

Challenges for Amazon in Mexico

Cities Hotbed for Internet Retailing Growth

The Royal Ahold and Delhaize Merger: How to Survive in the US Grocery Retail Market

A win-win for Hudson Bay Company and Metro AG But Challenges Exist

Looking Beyond the Obvious in Sub-Saharan Africa, Part 2: The Rise of E-commerce

Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing

Whole Foods to Open Low-Cost Chain

A Brighter Future for RadioShack in Mexico

Brazil's Business Environment: Consumption in Economic Slowdown

The Retailing Environment in Latin America