Despite the problems facing the global economy, particularly in mature cities, retail sales across the 27 Cities of Opportunity locations reached record levels in 2012, passing the $US1,100- billion mark. Mature markets still dominate in terms of spending levels, reflecting the higher prices and higher average incomes in those markets.
The growth of the emerging Cities of Opportunity, however, is shifting the balance toward greater spend in emerging markets. Of the 27 urban centres, emerging cities now account for 38% of total retail sales in 2012 compared with 34% in 2000. There’s no doubt about it: the wealth and demographic profiles of the Cities of Opportunity are changing, reflecting patterns across the globe. One of the key drivers of change in the future retail and consumer goods market will be the accelerating growth in middle- and high-income emerging-market households.
That trend sets the foundation for our favourable retail sales projections and, long term, will bring newfound consumer purchasing power to urban centres previously unable to support significant “high-end” demand.
Looking ahead across the 27 Cities of Opportunity locations, a staggering $US19.3 trillion of cumulative retail sales is projected by 2025. It equates to an average of $US1,500 billion of retail sales every year and reflects an annual growth rate of 3.9%.