AFRICA – Africa may be small in terms of revenue-contribution to the global retail universe, but the market offers a compelling investment case.
Dylan Piatti, Africa Consumer Business chief of staff at Deloitte, said on Tuesday Africa should not be overlooked because it offered above-average growth prospects and there was significant retail investment on the continent. He was speaking at the launch of the professional services firm’s African Powers of Retailing report.
The top 25 listed retailers in Africa collectively earned revenue of US$44.3bn in the 2013 financial year, contributing around 5.4% to the total African retail market size of US$823.2bn, according to Deloitte.
“The more mature South African retail market has performed strongly from a continental perspective, which is one of the reasons international retailers eager to establish a footprint on the African continent have tended to enter via SA.
“However, there is an emerging shift in the regional focus of entry, as well as key players looking beyond African borders for expansion opportunities in Asia and the UK. It is also testament to the ability of the country’s retailers to compete in what remains a very tough operating environment,” Mr Piatti said.
Shoprite was named Africa’s number one retailer, followed by Massmart and Pick n Pay, with Spar Group fourth and Woolworths placing fifth, Deloitte said.