Retail Sales Growth in Developing Markets

The developed (mature) retail marketplace is seeing relatively stagnant sales growth around the globe. However, many developing markets are witnessing strong sales increases across various retail store categories. In addition, the popularity of different store formats is evolving. This has significant implications for retailers looking to expand.
According to Nielsen:
“Globally, the trade channel mix is becoming more fragmented as consumers shift toward smaller store formats. On a value basis, large supermarkets and hypermarkets account for just over half (51%) of global sales, but smaller formats such as traditional, drug, and convenience outlets grew at a faster rate over the past 12 months. Year-over-year sales growth in drug stores (+6%), small supermarkets (+5%), and traditional stores (+4%) doubled, or more than doubled, that of large supermarkets and hypermarkets.”
“Channel structures and trends vary greatly between countries. In developed markets, 80% of sales come from large supermarkets, hypermarkets, and convenience stores. While sales in large supermarkets and hypermarkets were flat (+0.3% and +1%, respectively) in the latest 12 months, sales in convenience stores, hard discounters, and drug stores grew more rapidly (+3%, +2% and +2%, respectively). In developing markets, the story is much different. Traditional trade stores continue to be the dominant channel, accounting for 38% of total retail channel sales, but sales in supermarkets, hypermarkets, and drug stores are growing at a faster rate. Sales grew by double-digit rates in drug stores (13%) and large and small supermarkets (10% and 11%, respectively), compared with only 4% growth in traditional stores.”


Click the Nielsen chart to read more.


This entry was posted in Global Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together and tagged , , , , , , , . Bookmark the permalink.

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