Accenture Globalization Index
1st November 2013
Introduction
Message from Chris Donnelly
Accenture Retail Industry
Managing Director
Message from Lindsay Cowan
Chief Knowledge Officer at
Planet Retail
As the Accenture Globalization Index starts its second
year we see some trends emerging.
Planet Retail is delighted to support Accenture in the
continued development of the Globalization Index.
Fashion and accessories retailers continue to top the
list for new market entries, using franchising to push
into new markets at great speed.
Now entering its second year, the Index continues to
go from strength to strength as a gauge of retailer
globalization. The trends highlighted in this edition of
the Index are highly topical and showcase how
interconnected the world’s retail markets are
becoming.
Grocers are franchising their fashion private labels as
stand-alone stores and the department store retailers
are expanding much more successfully this time
around, again through franchising.
Combine these trends with that of U.S. department
stores reaching out globally through their websites and
we have the intriguing sight of different retailers facing
off with each other via different channels.
We remain grateful to Planet Retail for helping make
this Globalization Index possible.
Copyright © 2013 Accenture All rights reserved.
Whether it’s expansion into Africa or bringing fashion
labels to the Middle East and Asia via franchise,
retailers continue to rank global expansion high on
their agendas under the ultimate aim of achieving
seamless retailing worldwide.
By lifting the lid on where, why and how retailers are
moving into new markets, we will further paint a picture
of retailer globalization in the coming quarters.
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The Accenture Globalization Index
What does the Index measure?

Accenture and PlanetRetail have identified a universe of almost 500* of the largest grocery and nongrocery retailers globally and has tracked their entries in new markets.
23

Period of Analysis:
16 July 2013 – 15 October 2013

There were 23 market entries

The second highest number of entries in
a quarter
Each market entry is tracked in terms of:
Source Country
Target Country
Entry Format
Entry Vehicle
Company’s home
nation
Countries they
entered
Format or channel
with which they
entered
Entry vehicle they
used
Note: * see methodology for more details
Copyright © 2013 Accenture All rights reserved.
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Fashion and accessories retailers have been the
main movers since the start of the Index
43
Other
Consumer Electronics
Leisure & Entertainment
Home Garden and Auto Stores
Department & Variety
1
2
5
1
32
2
2
6
25
Grocery
1
13
3
17
2
2
3
Fashion and Accessories
15
Q3 2012
2
5
6
3
23
1
2
3
5
3
1
12
13
Q2 2013
Q3 2013
11
4
6
5
Q4 2012
Q1 2013
Source: Accenture Globalization Index
Copyright © 2013 Accenture All rights reserved.
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This Quarter: North Africa is on the radar screen for
non-food retail and food service
A number of retailers entered
new markets in Africa during
the third quarter, adding to a
growing trend of companies
looking at the continent as a
market of real retail potential.
UK department store retailer
Debenhams and Casinobanner Monoprix both made
moves into the Libyan retail
market, while IKEA entered
Egypt.
Outside of the universe
covered by the Accenture
Globalization Index, Clarks
and food service chain
Subway entered Kenya, while
Dominos Pizza made a move
into Africa’s largest market
Nigeria.
Source: Accenture Globalization Index
Copyright © 2013 Accenture All rights reserved.
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New Gateways to Africa: Libya and Morocco have
attracted retailer interest. Political stability will
encourage more market entries in more countries
Country
Egypt
Egypt
Egypt
Egypt
Egypt
Egypt
Egypt
Egypt
Egypt
South Africa
South Africa
South Africa
South Africa
South Africa
South Africa
Libya
Libya
Libya
Morocco
Morocco
Morocco
Morocco
Morocco
Morocco
Morocco
Morocco
Morocco
Morocco
Company
Arcadia Group
BIM
Dairy Queen
Debenhams
Gap (The)
IKEA
L'Occitane
Metro Group
Sonae
Arcadia Group
Gap (The)
Inditex
Indomaret
Walmart
Yves Rocher
Debenhams
Casino (Monoprix)
Iceland
Casino
Couche-Tard
Fnac
Galeries Lafayette
Gap (The)
H&M
Kering
Lagardère Services
Next
Sonae
2010
X
2011
2012
2013
X
X
X
X
X
X
X
X
X
X
Retailers eye North Africa
Despite recent and on-going political turmoil,
the North African region has seen a number of
key market entries over the past few years.
Indeed, both Egypt (9) and Morocco (10) have
seen more entries since 2010 than South Africa
(6) – a country often described as the gateway
to retail Africa.
X
X
Libya meanwhile has seen three market entries
in 2013 alone (Iceland, Monoprix, Debenhams).
X
X
X
X
Given North Africa’s proximity to Europe and
the Middle East, political stability would likely
bolster the region’s reputation as a market of
real retail potential. Indeed, moves into North
Africa by IKEA (Egypt) and Iceland (Libya) mark
the first moves made by these retailers into
Africa overall.
X
X
X
X
X
X
X
X
X
X
X
Source: Accenture Globalization Index
Copyright © 2013 Accenture All rights reserved.
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Grocers are opening stand alone stores for their
private label apparel
Walmart (George)
Sonae (Zippy Clothing)
Prior to the third quarter, George
at Asda had opened eight
franchise stores across the
Middle East, UAE and Malta in
the last year alone. In Q3 the
brand debuted in Dubai and
Singapore. Further expansion is
planed for the Middle East and
emerging Asia.
Portuguese retailer Sonae has already
taken its Zippy Clothing brand to the
Middle East and in Q3, it opened its first
store in North America – a franchise store
– with plans for three more stores in the
next two months. The range of offer is
identical to that offered in its Portuguese
stores.
Tesco (F&F)
Loblaw (Joe Fresh)
Following franchise agreements
in Central Asia and across the
Middle East, Tesco has franchise
agreements to open seven F&F
stores
in
Switzerland
(in
partnership with COOP) and two
stores in Gibraltar.
Although Loblaw made no entries in
Q3, its Joe Fresh private label
clothing brand is already in the US
and Loblaw is suggesting that
Spring 2014 will mark its first foray
outside North America with Asia as
the first stop on its global expansion
push.
Source: Accenture Globalization Index
Copyright © 2013 Accenture All rights reserved.
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Franchising has become a very important entry vehicle for
all retail sectors across a wide range of countries
Fashion and accessories retailers are the main
users of the franchise model for international
expansion and grocers have used a franchise
model for their stand-alone fashion businesses.
Number of companies using franchise to
expand internationally by sector
Fashion & Accessories
13
Grocery
7
Department &
Variety
Home Garden & Auto
5
3
The fashion and accessories retailers have used
specific franchise partners to expand into multiple
markets; expect the grocers to follow a similar
pattern:
• H&M used Alshaya in at least 10 countries
• The GAP used Alhokair in at least 6 countries
• Inditex (Zara) used Azadea in at least 8 countries
and Alhokair in at least 4 others
While franchising is the only realistic way for
retailers to enter the Middle East, it is not limited
to the Middle East. Franchising has been used
by retailers to enter 30 different countries over
the 5 quarters of the Index:
Armenia
Azerbaijan
Bulgaria
China
Columbia
Costa Rica
Dom Republic
Georgia
Germany
Hong Kong
India
Indonesia
Jordan
Kazakhstan
Kuwait
Lebanon
Macedonia
Malaysia
Morroco
Pakistan
Qatar
Singapore
South Africa
Spain (Canary Islands)
Sri Lanka
Thailand
Turkey
UAE
Uruguay
US
Source: Accenture Globalization Index
Copyright © 2013 Accenture All rights reserved.
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The Top “5”: Number of market entries –
who, what, from where, to where and how
Retailer
H&M
Sector
4
Arcadia Group
2
IKEA
2
WalMart
2
Everyone else
13
Department & Variety
3
Home Garden & Auto
3
Leisure
1
Grocery
1
Entertainment
1
Other Specialty
1
1
Target Countries
Source Countries
US
8
Sweden
6
Entry Vehicles
Libya
2
Lithuania
2
Every Other
UK
Fashion & Accessories
Company
Owned Stores
10
Franchise
8
1
4
Joint Venture
France
Every Other
3
2
1
Web site
2
Source: Accenture Globalization Index
Copyright © 2013 Accenture All rights reserved.
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Methodology
Retailer Universe:

Top Retailers by Grocery Sales: Retailers that achieved grocery banner sales in excess of
US$ 1.5 billion in 2011. Currently 250 retailers.

Top Retailers by Non-Food Sales (not already included in the grocer list): Retailers that
achieved non-food banner sales in excess of US$ 750 million in 2011. Currently 239
retailers.
Globalization move definitions:

The opening of a new format in a new country (irrespective of whether a company has a
different format already trading in that particular country).

The opening of a new country-specific website (even if the retailer has existing operations in
that country).

The acquisition of a company in a target market.

The creation of a Joint Venture in a target country.

The launch of a franchise operation in a target country.
Copyright © 2013 Accenture All rights reserved.
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Contact Details
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with
approximately 275,000 people serving clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all industries and business functions, and extensive
research on the world’s most successful companies, Accenture collaborates with clients to help them
become high-performance businesses and governments. The company generated net revenues of
US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
To learn more about globalization contact:
Chris Donnelly
Managing Director
London, UK
christopher.donnelly@accenture.com
Dave Richards
Managing Director
Chicago, USA
david.t.richards@accenture.com
Takaaki Haraguchi
Managing Director
Tokyo, Japan
takaaki.haraguchi@accenture.com
Adrian Bertschinger
Managing Director
Johannesburg, South Africa
adrian.bertschinger@accenture.com
Copyright © 2013 Accenture All rights reserved.
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