Retailers expanding globally turn to developing markets

Turkey, the sixth-ranked country, is luring international retailers with a growing economy and favorable consumer demographics. Apple is opening its first store in Istanbul this year.

In Mexico, which rose by seven rankings to land at 21st, Payless ShoeSource will open 41 stores though a Mexican franchiser in the next three years. Apparel chain H&M has opened its first Mexico City store.

And sub-Saharan Africa continues to build momentum, with Botswana and Namibia in the rankings.

Because five of the 12 most populous countries will be in Africa by 2100, "there is no doubt that this continent is a dramatic retail opportunity for those that can navigate the business and political risks," the report says.

For luxury retailers, some up-and-coming hubs are on the horizon. Small-population countries with wealth and a focus on consumers were ranked highly, among them Uruguay; ranked third, Mongolia, seventh; Georgia, eighth, and Armenia, 10th.

The index also found examples of global retailers reversing course after aggressive expansions, including in China, where "many are scaling back plans for new stores and choosing sites more carefully," the report says.

Meanwhile, in Latin America and Central Asia, more retailers are opening in smaller countries before deciding whether to enter larger markets.

lorraine.mirabella@baltsun.com