The Retail Playbook for Expansion into Emerging Economies

Retailers are increasingly looking to expand internationally to sustain growth, especially within a strong U.S. economy. According to the National Retail Federation, December figures looks likely to meet or exceed the organization’s forecast for a strong holiday shopping season.

This optimism is prompting businesses to explore new opportunities beyond their borders, and emerging markets are shaping new trends. These regions, particularly the Persian Gulf and Latin America, offer expanding consumer bases, rising disposable incomes, and a shift toward online shopping habits, making them fertile ground for growth. However, the allure of these markets isn’t without hurdles. 

Setting up operations in a new country involves overcoming regulatory complexities, ensuring compliance with local laws, and tailoring strategies to unique cultural and economic landscapes. It’s not just a set-it-and-forget-it situation with compliance — legislation is set to change in several regions, and not all at once. For instance, Mexico announced a new policy to end “border skipping” in mid-December, which took effect immediately. More changes are likely later this year, affecting how goods are shipped globally.

Markets on the Rise

In the Persian Gulf region, countries like Saudi Arabia and the United Arab Emirates (UAE) are increasingly becoming focal points for global trade. In 2023, the U.S. exported more than $24.8 billion in goods and services to the UAE, a 19% increase over the previous year. This surge reflects the region’s growing consumer base, fueled by high disposable incomes and favorable economic policies. Additionally, the adoption of delivery d…