Now Available: Venezuela Retail Report Q2 2016

While long-term prospects look favourable for Venezuela, the short-term growth forecast remains uncertain , and at best will remain subdued over the medium run. The ruling government ' s highly interventi onist stance in retail, along with high inflation, a weak currency and subdued oil revenues provide for a uncertain economic outlook remain the greatest challenges facing the retail sector. The effect will see a rapid contraction in spending and disposable income levels and purely essentials focussed purchases as consumer confidence remains low.

Key Views & Developments

Full Report Details at
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While the country's economic struggles continue, discount retailers and sellers of basic goods will continue to perform relatively well.

Low oil prices will continue, affecting Venezuela's balance of payments picture and government income. This will have a negative impact on the government's extensive subsidy programmes and will damage consumer confidence.

Due to unfavourable business conditions in the country, the main trend in Venezuela has been the consolidation of larger chain stores across the retail sector as opposed to increasing numbers of new entrants. We expect this to continue, as only the larger chains have the ability to challenge the big state-owned chains.

Total household spending is set to rise from USD183.6bn in 2016 to USD223.3bn in 2020.

Net income per household is set to rise from USD10,383 in 2016 to USD12,056 in 2020.

The proportion of households earning more than USD10,000 a year is set to rise from 23.6% in 2016 to USD31.7% in 2020.

The proportion of young adults (aged 20-39 years), a key spending demographic, is set to fall slightly from 31.9% in 2016 to 31.6% in 2020.

The Venezuela Retail Report has been researched at source and features BMI Research's independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.

BMI's Venezuela Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.

Key Benefits
Benchmark BMI's independent retail industry forecasts for Venezuela to test other views - a key input for successful budgeting and strategic business planning in the Venezuelan retail market.
Target business opportunities and risks in Venezuela through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.

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