The Global Retail Development Index 2017 finds that geopolitical instability and the growing power of local and regional competition in emerging markets are forcing global retailers to rethink their strategies. At the top of this year’s Global Retail Development Index rankings, India and China have switched places, with India overtaking China for first. In terms of both size and momentum, Asia is the driving force behind global retail and the expansion of branded food and beverage, personal care products, apparel, fashion, and luxury. North Africa is making a comeback with the Arab Spring in the rearview mirror, while the Gulf Cooperation Council (GCC) region, specifically the United Arab Emirates and Saudi Arabia, is developing new ideas for growth. Sub-Saharan Africa keeps growing and South America’s Andes markets continue to impress. Russia and other countries in the Commonwealth of Independent States are still battling with sluggish growth.

Top 30 Global Retail Development Index List (2017)

Rank	Country		Score	Remarks
1		India	71.7	With a growing middle class and rapidly increasing consumer spending, India overtakes China for the number one spot in this year’s GRDI.
2		China	70.4	China, long the Index leader, drops to second place as the market matures, but the country still leads the pack in other areas, most notably e-commerce.
3		Malaysia	60.9	Malaysia’s long-term prospects are strong, thanks to tourists, higher disposable income, and government investments.
4		Turkey	59.8	Despite serious challenges in the past year, Turkey moves up two places to 4th in this year’s Index.
5		United Arab Emirates	59.4	The United Arab Emirates remains the most attractive market in the region, as growth opportunities expand beyond saturated Dubai.
6		Vietnam	56.1	Vietnam moves ahead and is emerging as an important market for retail expansion with its liberalized investment laws.
7		Morocco	56.1	Morocco continues to rise in the rankings thanks to government efforts to attract foreign investments.
8		Indonesia	55.9	Indonesia has long been an elusive target for foreign retailers, but continued liberalization and infrastructure investments are attracting more foreign interest.
9		Peru	54.0	Peru continues to outperform other regional economies, the result of two decades of solid growth.
10		Colombia	53.6	Despite lower than expected GDP growth, Colombia has remained attractive for retailers.
11		Saudi Arabia	53.6	Saudi Arabia is focusing on diversifying its economy away from oil, and the retail sector is in the spotlight.
12		Sri Lanka	51.8	Sri Lanka retains its 12th position in the Index despite sluggish GDP growth due to reduced investment from China, lower remittances, and moribund export markets.
13		Dominican Republic	51.7	Despite relatively low GDP per capita, trade-friendly policies make the Dominican Republic an attractive destination for investments.
14		Algeria	50.1	As oil revenues fall, Algeria’s economic circumstances remain difficult and consumer spending has dropped, but the country has risen four position in the Index.
15		Jordan	49.0	Jordan’s economy is gradually recovering from the aftershocks of regional conflicts.
16		Kazakhstan	48.4	Despite expected GDP growth through 2019, Kazakhstan falls 12 spots in this year’s rankings.
17		Côte d’Ivoire	48.4	The combination of a underpenetrated market and GDP growth of 8 percent makes Côte d’Ivoire an attractive target for retailers that can manage the risks.
18		Philippines	46.8	The outsourcing industry is boosting incomes and propelling retail growth as the Philippines’ large retail market begins spreading beyond the big cities.
19		Paraguay	45.7	Paraguay’s GDP grew well above Latin American averages in 2016, driven by investment incentives and manufacturing.
20		Romania	45.6	With 20 million people, Romania is a natural expansion target for foreign retailers looking to enter Eastern Europe.
21		Tanzania	45.4	Making its Index debut, Tanzania has a fast-growing economy and an underdeveloped retail market.
22		Russia	43.2	The Russian economy continues its slow path to stabilization, but timelines remain unclear.
23		Azerbaijan	42.9	Azerbaijan’s GDP has begun to recover, but the economic outlook remains uncertain and dependent on oil prices.
24		Tunisia	42.7	Tunisia rises two positions amid small improvements across all dimensions of the Index.
25		Kenya	41.3	A growing population, increasing per capita incomes, urbanization, and a property boom make Kenya attractive for modern retail.
26		South Africa	40.2	South Arica’s apparel and e-commerce sectors are growing rapidly, as local retailers seek new ways to grow.
27		Nigeria	39.9	Nigeria presents immediate challenges, yet its large population, growing middle class, and long-term potential keep it on the Index.
28		Bolivia	39.6	After a decade of five percent average GDP growth driven by natural gas and mining exports, Bolivia enters the Index for the first time this year.
29		Brazil	39.3	Brazil drops nine spots on the back of a contracting economy, political chaos, and record unemployment.
30		Thailand	37.8	Thailand re-enters the Index this year despite political and security challenges.