2006 Global Retail Development Index published.

27 April 2006. AT Kearney published its 2006 Global Retail Development Inddex (GRDI). Findings are as follows. On a regional level, Asia reclaimed the lead position from the maturing markets of Eastern Europe. As part of Asia, the Middle East posted the highest retail sales growth globally, led by United Arab Emirates and Saudi Arabia. The Mediterranean held steady with mixed results, while Latin America recovered from its economic crises and enjoyed a strong return on the Index. Finally, Africa remains outside the game, but that is not stopping retailers from entering this populous region.

In a reversal of the past few years, Asian countries dominate this year's Index and outrank those from Eastern Europe. Asian countries hold 40 percent of the top 20 GRDI markets, while Eastern European countries hold 35 percent. Just last year, Asia accounted for 30 percent while Eastern Europe captured 55 percent. This shift is not a surprise. Asia has always been the largest region of emerging markets: It represents 26 percent of global GDP and 32 percent of global retail sales. Its annual retail sales grew at a healthy rate of 7 percent in 2005. More important, modern retailers have tapped into just 28 percent of the region, compared with 42 percent of the markets in Eastern Europe.

The leading Asia markets are also getting hotter: India topped the 2006 Index and Vietnam moved up five places to reach 3rd place. Three other Asian tigers-Thailand, South Korea and Malaysia-also made it to the top 15. The following snapshots provide insight into key markets:  

India keeps its lead. India is more attractive than ever to global retailers. India's economic growth, forecasted at 8 percent GDP in 2006, continues to support the retail industry. The estimated $350 billion retail market is expected to grow 13 percent and the top five retailers account for less than 2 percent of the modern retail market. And with one billion people, it is the second largest population in the world.  

There are also fundamental changes underway in India. In early 2006, the government announced that it would allow foreign companies to own up to 51 percent of a single-brand retail company.

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