Business Monitor International


Venezuela Retail Report

Published 13 October 2014

  • 58 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Venezuela Retail Report

BMI View:   Rising incomes and an increasing number of middle class households make Venezuela's retail market attractive. However, these plus points are overshadowed by the uncertain business environment and economic instability.

The new Venezuelan Retail Report provides an extensive and comprehensive forecast of various retail indicators including household spending, and headline total spending across each retail sub-sector, household income and employment forecasts, demographic forecasts, and a detailed breakdown of household and per capita spending across a large number of retail areas.

We are forecasting real GDP growth of just 0.5% in 2014, in the face of high inflation and the challenges posed to the business environment by the government, such as the ongoing market distortions associated with price controls the country's complex system of acquiring foreign currency. This growth rate is far below the average 5.9% seen over the past decade.

Although Venezuela's retail sector has benefited from relatively high GDP growth over the last decade, with much expansion seen in the areas of mass grocery retail (MGR) and shopping malls, the industry now has a range of problems with which to contend.

The business environment, specifically government policy, is unpredictable, and the threat of expropriation remains real. Meanwhile the state is heavily involved in various aspects of the retail industry, subsidising and running MGR chains, which creates a highly uneven playing fields for private-sector firms in the market, as wells as setting rental rate maximums for commercial real estate, which has affected mall operators.

Meanwhile high inflation, which seriously erodes purchasing power, exchange rate issues, and shortages of basic goods all make it difficult for retailers to operate in Venezuela.

In the short term, therefore, although we see good growth in household incomes, and an increasing number of middle class Venezuelan's with disposable incomes, the risks in...

Table of Contents

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Industry Forecast
13
Headline Retail Forecast
13
Table: Total Household Spending, 2011-2018
13
Table: Retail Sector Spending, 2011-2018 (% of total)
14
Table: Retail Sector Spending As A % Of GDP, 2011-2018
15
Table: Headline Retail Sector Spending, 2011-2018
16
Retail Sub-Sectors Forecast
18
Food And Drink
19
Table: Food, Drink And Tobacco Spending, 2011-2018
19
Clothing And Footwear
20
Table: Clothing And Footwear Spending, 2011-2018
20
Household Goods
20
Table: Household Goods Spending, 2011-2018
21
Personal Care
22
Table: Personal Care And Effects Spending, 2011-2018
22
Household Income And Numbers Forecast
23
Table: Household Data, 2011-2018
24
Table: Labour Market Data, 2011-2018
25
Demographic Forecast
25
Table: Total Population, 2011-2018
26
Table: Population: Babies, 2011-2018
27
Table: Population: Young Children, 2011-2018
27
Table: Population: Children, 2011-2018
27
Table: Population: Young Teens And Older Children, 2011-2018
28
Table: Population: Young People, 2011-2018
28
Table: Population: Older Teenagers, 2011-2018
28
Table: Population: 21 Years +, 2011-2018
29
Table: Population: Young Adults, 2011-2018
29
Table: Population: Middle Aged, 2011-2018
29
Table: Population: Urban And Rural, 2011-2018
30
Macroeconomic Forecasts
31
Economic Analysis
31
Table: Venezuela - Economic Activity
36
Industry Risk Reward Ratings
37
Latin America Risk/Reward Ratings
37
Table: Latin America Retail Risk/Reward Ratings
37
Industry Risk/Reward Ratings
38
Rewards
38
Risks
38
Market Overview
39
Retail Formats
40
Retail Sub-sectors
41
Tourism
42
Competitive Landscape
44
Malls And Department Stores
44
Mass Grocery Retail
44
Glossary
46
Methodology
53
Industry Forecast Methodology
53
Sources
56
Risk/Reward Rating Methodology
56
Table: Retail Risk/Reward Ratings Indicators
58
Table: Weighting Of Indicators
59

The Venezuela Retail Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Venezuela Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits

  • Benchmark BMI's independent retail industry forecasts for Venezuela to test other views - a key input for successful budgeting and strategic business planning in the Venezuelan retail market.
  • Target business opportunities and risks in Venezuela through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.

Coverage

BMI Industry View

Summary of BMI’s key forecasts and industry analysis, plus a discussion of major industry developments and a snapshot of key short-term demand-driving macroeconomic movements.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the retail sector and within the broader political, economic and business environment.

BMI Industry Forecasts

There are four separate 5-year forecast modules in the retail reports. These are:

Headline Retail Forecast: Total Household Spending, (US$bn and local currency, % growth, % GDP, per capita, per household); Spending by Retail Sector for: food and non-alcoholic drink, alcoholic drink, clothing and footwear, housing and utilities, furnishings and home, health, transport, recreation, education, transport, restaurants and hotels, personal care and insurance (US$bn and local currency, % growth, % GDP, % of total spending)

Retail Sector Forecast: Breakdown of Food, Non Alcoholic Drink, Alcohol, Tobacco, Clothing, Footwear, Household Goods, Furnishings, Appliances, Glass and Tableware, Household Textiles, Consumer Electronics, Garden Toys and Pets, Home and Garden tools, Personal Care, Personal Effects Spending (US$bn, % Growth);

Household Income and Numbers Forecast: Number of Households (‘000,% growth); gross income per household and per capita; net income per household and per capita; tax and social contributions per capita; breakdown of household incomes – US$5000+, US$10,000+ US$50000+ (‘000, % of total); labour force, employment and unemployment (‘000, % change)

Demographic Forecast: Total population; Babies 0-12 months; Young Children 0-4yrs; Children 5-9yrs; Young Teens and Older Children 10-14yrs; Older Teens 15-19yrs; Adults 21yrs +; Young Adults 21-29yrs; Middle Aged 40-64yrs (‘000, % growth, male, female); Urban Population (‘000, % population); Rural Population (‘000, % population).

Industry Risk Reward Rankings

BMI’s Retail Industry Risk Reward Rankings provide a country-comparative Risk Reward Rankings index aimed at investors in the regional retail market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

Market Overview

Provides a detailed country-specific analysis of the key trends and developments in the retail sector as a whole, as well as an assessment of the main drivers affecting the major retail segments including mass grocery retail, fashion, pharmacies, consumer electronics, home improvement and personal care.

The market overview also considers the most effective store formats in a given country and the impact of these factors on the main international and domestic players’ development strategies.

Competitive Landscape

This provides a brief overview of the key players in each subsection of the retail sector including MGR, Fashion, Home Improvement, Consumer Electronics, Pharmacies, and Department Store chains.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc