Boston, MA -- (SBWIRE) -- 03/31/2014 -- Mexico's retail sector is booming, with healthy economic growth ensuring that 80% of households will be in the middle-income wage bracket of US$10,000+ by 2018. Six out of 12 headline retail sectors will average double-digit growth over the 2014-2018 period, buoyed by a large population that shows no sign of slowing down. Health spending, however, is the underperformer by quite a way, with spending growth to contract by 3.4% per annum.
Mexico's economy is strong, with real GDP growth of 3.5% anticipated for 2014 - above the global average of 3.2%. This is a marked improvement from the 1.5% estimated for 2013, with economic growth set to average 3.7% between 2014 and 2018. This will be helped by higher public and social investment in Mexico's 2014 budget, which is to be 8.8% higher than 2013 levels. The country has the second-largest population in Latin America, and bucks the global trend in terms of household size. Most developed and developing countries are witnessing a contraction in household size, while Mexico's is to remain static over the forecast period, at four persons per dwelling.
View Full Report Details and Table of Contents
Personal care & effects is to be the outperformer over the 2014-2018 period, with spending growth to average 15.9% per annum. Health spending is the only headline retail sector set to suffer a contraction, declining by 3.4% per annum, a fact that could be linked to the country's obesity epidemic. According to the UN's Food and Agricultural Organisation, almost 33% of the Mexican population is obese and the country has the world's biggest weight problem. A 'soda tax' has been implemented in a bid to curb the country's health problem; if it works, health spending could increase, although this has the potential to dent spending on non-alcoholic drinks.
- In January 2014, it was reported that US fashion retailer Chico's FAS was to launch its first Mexican store in spring 2014, in an exclusive franchisee deal with El Puerto de Liverpool. The first Chico's outlet, a stand-alone boutique, will be opened at Perisur Mall in New Mexico. The second stand-alone boutique will be opened in Villahermosa, Tabasco. Meanwhile, Liverpool itself plans to open six new department store shop-in-shops in H114.
- In January 2014, it was reported that stocks of Mexican retailers, including Grupo Commercial Chedraui and Grupo Sanborns, had dropped, with same-store sales registering a decline. Shrinking sales have fuelled concerns that higher taxes are taking their toll on consumer demand. In December 2013, retail sales dropped by 0.4% at stores that had been operational for over a year, according to retail trade association Asociacion Nacional de Tiendas de Autoservicio y Departamentales.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Retailing research reports at Fast Market Research
You may also be interested in these related reports:
- China Retail Report Q2 2014
- Peru Retail Report Q2 2014
- Chile Retail Report Q2 2014
- Colombia Retail Report Q2 2014
- Indonesia Retail Report Q2 2014
- Czech Republic Retail Report Q2 2014
- Bahrain Retail Report Q2 2014
- Hong Kong Retail Report Q2 2014
- Singapore Retail Report Q2 2014
- Argentina Retail Report Q2 2014