UAE. In a report released today by A.T. Kearney the UAE is ranked as the seventh most-attractive country in the Global Retail Development Index (GRDI), marking the eighth year in a row that the country has been globally ranked in the top 10.
The UAE’s retail market continues to grow steadily with retail space growing by 7 percent in 2014 to reach 1.6 million square meters and sales growing 6 percent to $70.9 billion. Overall, the UAE remains the retail hub of the region and the point of entry to the GCC for many global retailers.
The A.T. Kearney report also explains that new luxury entrants, along with global food and beverage offerings, are set to enter the market in the coming three years. Because the UAE remains the most developed regional retail market, it is a crowded space.
Several strategies are being put in place by players to further continue local growth. New entrants are enticed to enter the market through an increased availability of retail space. Retailers are considering opportunities to implement innovative customer service as a way to differentiate themselves from competitors.
Shamail Siddiqi, Principal of the Consumer and Retail Practice, A.T. Kearney Middle East, stated: “The UAE is exhibiting a pattern typical of most retail hubs. The UAE’s economic strength has allowed it to attract the biggest retail brands in the world, introducing them to further lucrative markets in the rest of the GCC and beyond.”
The 2015 GRDI includes a special feature on the prospects for luxury goods in developing markets. Martin Fabel, Partner and Global Head of the Strategy Practice, A.T. Kearney Middle East, commented: “Our work with consumer industries and retail clients show that retail sales growth is expected to continue. Luxury remains a relatively bright spot in emerging markets, as the wealthy have proven less vulnerable to economic woes than the general population.”
The feature includes an analysis of the 15 leading luxury brands and their presence in the GRDI’s top 30 countries.
The analysis shows emerging markets fall into three tiers of luxury development, with different implications for brands looking to enter or expand in these markets. The UAE currently hosts all of the top 15 brands, indicating a high local demand for luxury items and opportunities to leverage and build continued growth on this strong base.
To read the full 2015 GRDI report, please go to www.grdi.atkearney.com.
2015 Global Retail Development Index Ranking
Photo caption: Martin Fabel, Partner and Global Head of the Strategy Practice, A.T. Kearney Middle East,
About A.T. Kearney
A.T. Kearney (www.atkearney.com) is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world’s leading organizations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centers across 40 countries. From our Middle East offices in Abu Dhabi, Dubai, Manama, Doha and Riyadh, A.T. Kearney supports both private and public sector clients as well as nations to excel and prosper by combining our regional expertise and global business insights to achieve results.
For more information, visit www.middle-east.atkearney.com
About the A.T. Kearney Global Consumer Institute
The A.T. Kearney Global Consumer Institute is a worldwide network of professionals and executives. The Institute combines proprietary and public data resources with local knowledge to deliver strategic and operational insights to executives in consumer-facing industries seeking long-term growth and competitive advantage.
For more information, please contact [email protected].
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