{ "docId": "019dd923-5ca1-7489-b637-d7a66052de17", "docSlug": "a587d39c6652536d", "documentTitle": "Global Retail Expansion at Crossroads", "authorId": "Kearney", "authorName": "Kearney", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.678, "pageNumber": 21, "pageCount": 31, "prevPage": 20, "nextPage": 22, "slideType": "regional_insights", "function": "summarize", "density": "overcrowded", "nDataPoints": 6, "notes": "The slide discusses the Global Retail Development Index (GRDI).", "elementsJson": [ "paragraph", "kpi_table" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-5ca1-7489-b637-d7a66052de17/21", "deckHref": "/decks/019dd923-5ca1-7489-b637-d7a66052de17", "deckJsonHref": "/decks/019dd923-5ca1-7489-b637-d7a66052de17.json", "deckAnchorHref": "/decks/019dd923-5ca1-7489-b637-d7a66052de17#slide-21", "components": [ { "bbox": null, "kind": "callout", "text": "With some “small gems” leaving the GRDI and turmoil in some major markets, Latin America has a smaller presence at the top of the rankings in 2016.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd951-c7c9-7288-bbc3-8ee213214884", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.3, "x": 0.09, "y": 0.62 }, "kind": "metric", "text": "Population: 32 million\nTotal retail sales: $70 billion\nRetail sales CAGR (2013-2015): -3.3", "attrs": null, "subkind": "big-number", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "03a178b4-d1af-47be-9eb1-d2b7dc9d0fe2", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Retail sales CAGR: -3.3", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd951-c7c9-7288-bbc3-91d7e34ddb3a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.82, "x": 0.09, "y": 0.09 }, "kind": "paragraph", "text": "The mall sector is also getting strong investment, with Majid Al Futtaim announcing plans to invest $500 million in building the third City Centre mall, with more than 103,500 square meters of retail space. Its Mall of Egypt will open later this year as the country’s largest mall at 160,000 square meters, and it will feature an indoor ski resort and a long list of international brands.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0b24d77c-ef48-4159-9766-eb8acd594634", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.27, "w": 0.82, "x": 0.09, "y": 0.68 }, "kind": "paragraph", "text": "Peru (9th) is Latin America’s top-ranked country, and understandably so. In 2015, the country performed above regional averages and had 3.6 percent GDP growth, well ahead of the overall region. The government’s continued efforts to stimulate integration and pursue free-trade agreements have helped open up the economy and attract foreign investment to the country. The economic conditions have helped boost private consumption (up 4.1 percent in 2015), and consumer confidence is the highest in Latin America.\nRetail continues to gain force, particularly in some of Lima’s emerging neighborhoods and in secondary cities like Arequipa, Trujillo, Chiclayo, Cusco, and Ica, but the growth remains predominantly in urban areas. The retail environment is modernizing as the government invests in increasing sector capacity and commercial associations promote omnichannel solutions.\nA key theme for 2016 is the development of malls inspired by the sophisticated urban spaces of neighboring Chile. There are 75 operating malls in Peru today, and six new developments are expected to open in 2016. With this, space for new players is opening up and fast-fashion is booming, particularly in Lima. Fashion retailers see the country’s textile manufacturing capacity", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "981ce3ff-0eed-4761-8f3b-d419d7265b9e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.24, "w": 0.82, "x": 0.09, "y": 0.18 }, "kind": "paragraph", "text": "Latin America\nWith traditional “small gems” Uruguay, Costa Rica, and Panama exiting the GRDI due to our updated methodology (see appendix on page 28) and Mexico and Chile graduating due to market saturation, Latin America has less presence at the top, but remains a vibrant and exciting option for future retail investment opportunity. Peru cracks the top 10 behind free trade stimulus and steady growth, as retailers expand to emerging neighborhoods and secondary cities. Brazil’s position keeps dropping as the not-so-long-ago booming market suffers the impact of increasingly eroding political and economic conditions.\nRetailers are adapting, adjusting store formats in large cities, investing in promotions and other ways to boost sales, and seeking out relatively untapped markets with steady GDP growth, such as Paraguay, the Dominican Republic, and Peru’s emerging neighborhoods and secondary cities.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d475c63f-5580-4884-83c8-8fb79ec25f9d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.82, "x": 0.09, "y": 0.43 }, "kind": "title", "text": "With some “small gems” leaving the GRDI and turmoil in some major markets, Latin America has a smaller presence at the top of the rankings in 2016.", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "32d27767-bb82-42d3-963b-f5f124797108", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.09, "y": 0.59 }, "kind": "title", "text": "Peru: Rising retail market", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff39a25a-368b-4be2-8761-899496608143", "frameworkName": null, "frameworkSlug": null } ], "metrics": [ { "metricRaw": "Retail sales CAGR", "numberRaw": "-3.3", "numberKind": "plain", "actionTitle": "With some “small gems” leaving the GRDI and turmoil in some major markets, Latin America has a smaller presence at the top of the rankings in 2016.", "calloutText": "With some “small gems” leaving the GRDI and turmoil in some major markets, Latin America has a smaller presence at the top of the rankings in 2016.", "numberScale": null, "numberValue": -3.3, "metricFamily": "growth_rate", "numberCurrency": null } ], "tools": [ { "name": "Pyramid Principle", "slug": "pyramid-principle", "agent": "Architect", "layer": "slide", "matchId": "ab1ae4a4-8c14-4092-8a09-25ef78936f55", "evidence": "Peru (9th) is Latin America’s top-ranked country, and understandably so.", "confidence": 0.5 } ], "frameworks": [], "arcBeats": [ { "to": 25, "from": 13, "beatId": "39becb00-0474-4700-b538-4d5d523521b5", "arcName": "Monroe's Motivated Sequence", "arcSlug": "monroes-sequence", "beatName": "Satisfaction", "beatSlug": "monroes-sequence-satisfaction", "evidence": "The document provides satisfaction by offering country insights and industry trends", "position": 2, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }