• GLOBAL RETAIL

• NEGATIVE FACTORS
• UK\USA

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Introduction
• Global retail is experiencing an explosive
modernization.
• Modern retail grew between 25 and 30 percent in
India.
• 13 percent in both China and Russia.
• Retail sales in the U.S will show a slight
decrease in 2008.
• UK retail sales were £265 billion in 2007.

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 Negative factors
• Extremely low consumer confidence
• Rising unemployment levels
• Extremely high consumer debt levels
• Global terrorism, tension and uncertainty.

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Retail Apparel Index, 2008
Absolute Growth
Market Size Prospects Consumer
Rank Country Score
Affluence
1 Brazil 44.5 33.4 42.1 48.2
2 China 74.0 22.1 35.7 47.0
3 India 57.4 37.4 31.1 46.6
4 Turkey 29.4 36.8 58.9 46.2
5 Chile 22.3 46.7 44.2 45.9
6 Romania 21.1 53.8 33.7 45.1
7 Argentina 20.6 43.7 38.8 41.1
8 Thailand 22.0 24.6 57.0 40.0
9 Russia 51.7 21.9 38.7 38.7
10 UAE 31.2 41.9 27.9 38.1

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Global Retail Development Index,
2008
Country 2008 2007 Change
Rank Rank
Vietnam 1 4 +3
India 2 1 -1
Russia 3 2 -1
China 4 3 -1
Egypt 5 14 +9
Morocco 6 15 +9
Saudi Arabia 7 10 +3
Chile 8 6 -2
Brazil 9 20 +11
Turkey 10 13 +3

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UNITED KINGDOM
• Menswear underperforming the rest of the
clothing sector, with growth of 1.5%, down from
3.3% in 2007.
• Smaller, niche clothing specialists are gaining
share from market leaders, collectively increasing
their share by 1.1 percentage points to 34.2% of
the market.

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UNITED STATES
• Experts are estimating the recessionary
conditions will last from 18 months to 11 years.
• The overall consumer electronics category
posted an 8.7% comparable store sales decline
for December, 2008.
• 87% of American consumers believe that the U.S
is in a recession.

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 Company Headquarters Sales in No. of stores Countries of
billion operation

Wal-Mart Stores US $312.40 6,380 Argentina,

Brazil,
Canada , USA,
UK

Tesco UK $69.6 2,365 UK, China

Kroger US $60.6 3,726 United States

Sainsbury UK $29.2 808 United

Kingdom

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Conclusion
• All current trends point to a tough time for
retailing.
• Profits at retailers for 2008-2009 are going to be
low.
• Sales in October 2008 dropped a record 2.8%
over the previous month.

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