Thursday, April 26, 2012

Retailers & Franchising

RETAILERS
  • Retail sales are on the rise and are expected to continue to rise due to the expanding and increasingly young population, a more economically stable middle class, booming tourism, and the exciting entrance of women into the workforce.
  • Egypt is the largest market in the Arab regions.
  • Retail sales accounted for 40.3% of GDP and 11.4% of the workforce in 2009.
  • Value-added services, quality products, and international brads are increasingly popular.
  • Pharmaceuticals, consumer electronics, and automotive purchases are expected to sky-rocket.
  • The top 5 grocery retailers in Egypt only cater to 1.8% of the total market, leaving a huge opportunity for anyone willing to take it.
  • Egypt is ranked 2nd in terms of low market saturation.
  • Cheap, skilled workers in Egypt will help make start-up businesses profitable.
  • Hypermarkets cater to the lower and middle classes as they offer food products at outrageously discounted prices.
Leading Retail Companies:
Americana Group
Carrefour
CityStars
Hertz
HyperOne
Radio Shack
Spinney's


FRANCHISING                                                                           
  • It is becoming extremely popular to open a franchise in Egypt of a foreign business, particularly in the food industry.
  • Right now, the food franchise market is valued at about US$300 million.
  • Franchising has helped local agriculture as many of these food giants are using local products to create their end result.
  • Food sanitation is improving as the franchisee imposes strict regulations.
Popular Franchises Now Found in Egypt:
-Chili's
-Hard Rock Cafe
-Little Caesars Pizza
-McDonalds
-Baskin Robbins



Source:
Invest in Egypt