THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Retailers think US is hardest market to crack

A new study has revealed that nearly half of British retailers believe that the US is the most difficult market in which to achieve commercial success despite it being the current destination of choice for international expansion.

GENERAL MERCHANDISE

Retailers think US is hardest market to crack

A new study has revealed that nearly half of British retailers believe that the US is the most difficult market in which to achieve commercial success despite it being the current destination of choice for international expansion.

The survey by banking group Barclays found that retailers consider the US to be the most challenging market. This was despite the growth of online which provides a low-cost means of entry and the seemingly similar cultures and values shared by British and American consumers. 

China came in second with 33% of retailers saying they had encountered problems when trying to set up shop while Asia was third with 19% of those questioned claiming they had experienced difficulties in entering the market. 

When asked about future expansion, 23% of retailers said Germany was their number one choice for overseas expansion in the next five years, closely followed by China and Australia.

Richard Lowe, head of retail & wholesale at Barclays, said: "On the surface the US would appear to be an easy market in which to secure a foothold but its sheer scale means achieving commercial success across the whole country is an incredible feat. As for China, nothing is impossible but, everything is difficult." 

While total UK retail spend is expect to grow by around 11.5% to £345.6 billion by 2016, in the US spend is predicted to rise by 17.5% to £2.3 trillion. However, China is expected to see an 85% surge in spending to £3.6 trillion by 2016, the highest in the world.   

Lowe continued: "It would be unreasonable to say there is no further growth in domestic markets, but it is becoming increasingly difficult to extract in the current climate. The economic realities across the western world mean that retailers now have international expansion firmly on their radar."   

Nearly a quarter of retailers surveyed thought that Africa would be the new retail growth story within a decade. However, only 21% currently generate sales on the continent. Of those which do, 53% said South Africa was their top market.  

When asked where in Africa they would consider expanding in future, South Africa remained the number one choice for 18% of those questioned followed by Ghana and Kenya. The reasons given for this interest was Africa’s burgeoning middle class followed by the take up of mobile technology. 

"Many of the trends which have driven the economic development of emerging economies in Asia and South America are beginning to take hold in Africa," added Lowe.

"It's rapidly expanding middle class increasingly need goods and services which cannot be catered for domestically, providing a golden opportunity for internationally-minded retailers. This is a truly ‘ground floor’ moment in many African economies." 


 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues