Mexico Retail Report - Business Monitor International - Industry Reports

Mexico Retail Report

Mexico Retail Report - Business Monitor International - Industry Reports
Mexico Retail Report
Published Jul 23, 2016
64 pages — Published Jul 23, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

Strong growth in labour-intensive sectors such as manufacturing and construction will lead to higher employment rates in Mexico, which will provide a valuable boost to average household income rates when measured in local currency terms in ----, though we note currency movements will lead to a short- term contraction in average household income when measured in US dollar terms, reflecting the ongoing weakness of the Mexican peso. Higher household income rates combined with improving access to credit and low inflation will in turn support robust growth in total household spending in ----, again when measured in local currency terms, with total household spending reaching some MXN-,---bn (USD---bn). ...Strong growth in labour-intensive sectors such as manufacturing and construction will lead to higher employment rates in Mexico, which will provide a valuable boost to average household income rates when measured in local currency terms in ----, though we note currency movements will lead to a short- term contraction in average household income when measured in US dollar terms, reflecting the ongoing weakness of the Mexican peso. Higher household income rates combined with improving access to credit and low inflation will in turn support robust growth in total household spending in ----, again when measured in local currency terms, with total household spending reaching some MXN-,---bn (USD---bn). Banco de Mexico (Banxico) is expected to hold the benchmark overnight interest rate at -.-- when it meets in late June, supporting our current forecasts. ...Swedish brand Make Up Store has also opened a new store in Mexico City, alongside other Swedish brand H&M, which has expanded rapidly in Mexico. Further reflecting the expected growth in the Mexican retail segment, Walmart Mexico announced in May ---- it plans to open over -,--- new stores in Mexico and the wider Central America region over the next ten years.

...BMI View: Mexico s retail market is expected to prove the regional outperformer in the short-to-medium term, with positive economic and labour trends supporting healthy growth in household income rates, which in turn will boost spending in a number of retail segments. The country is attracting a high level of international investor interest and we expect to see a large number of new retail units opening over the coming months, including the introduction of major international fashion and electronics brands to the market - reflecting growing consumer demand for non-essential and higher value items as disposable income rates rise. ...BMI View: Mexico s retail market is expected to prove the regional outperformer in the short-to-medium term, with positive economic and labour trends supporting healthy growth in household income rates, which in turn will boost spending in a number of retail segments. The country is attracting a high level of international investor interest and we expect to see a large number of new retail units opening over the coming months, including the introduction of major international fashion and electronics brands to the market - reflecting growing consumer demand for non-essential and higher value items as disposable income rates rise. While some risk to investors does stem from ongoing security concerns and a reliance upon the health of the US economy, overall Mexico s retail market is expected to grow and diversify rapidly and as such presents a valuable opportunity for a range of retailers. ...

...With inflation likely to remain low and with employment forecast to grow at -.- year-on-year (y-o-y) on average over the forecast period, BMI s Country Risk team believes that Mexican household spending will drive headline growth over a multiyear period. Household consumption will benefit from a strengthening US economy that will boost remittance flows to Mexico. Meanwhile, Mexican labour market dynamics are poised to improve, as rising US demand for manufactured goods supports increased hiring in the manufacturing sector. Against this backdrop, and following a short-term contraction due to currency movements, total household spending is set to increase steadily over the next four years at an average annual growth rate of --.- between ---- and ----, reaching USD---bn by the end of the forecast period (up from USD---bn in ----). The attraction of the Mexican retail sector is evidenced by the expansion of a number of major retail groups in the market, including the entry of British luxury retailer Ted Baker and ...

  
Source:
Document ID
2040-9052
Country
Industry
Format:
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Mexico Retail Report" Jul 23, 2016. Alacra Store. Dec 10, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Mexico-Retail-Report-2026-929>
  
APA:
Business Monitor International - Industry Reports. (2016). Mexico Retail Report Jul 23, 2016. New York, NY: Alacra Store. Retrieved Dec 10, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Mexico-Retail-Report-2026-929>
  
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