[slideshow_deploy id=’1637′] Peru has come a long way from the days of over 7,000 percent inflation and negative GDP growth. On a 11/2011 visit to Peru, Christine Lagarde, the IMF’s chief said: “Peru is one of the most vibrant economies in the world”. With a population almost at 30 million, Peru continues to undergo strong economic expansion – the longest on record – resulting in tripling per capita income ($5,100 for 2010) and a 20-point fall in poverty rates. Peru registered over 6 percent GDP growth in 2011 and, due to deteriorating international conditions, is projected to stay at a 5.6 percent for 2012 (Peru Central Bank). Peru retail market has been undergoing an impressive boom in last decade.
The continued economic bonanza has given birth to a dynamic Peru retail sector which has spurred frantic shopping center development, although it remains at low penetration levels relative to other markets. Peru’s retail universe is shared by domestic and foreign players. Strong retail growth has intensified the demand for retail space and investment in the sector in which both foreign and domestic players seek to dominate. Investments in commercial real estate have so far delivered 45 shopping centers just in the past decade and new projects in the works will double that number over the next 4 years, according to Peru’s shopping center association, which estimates 100 shopping centers by 2015. Peru’s largest cities are generating the strongest investments in the retail sector, as in other countries in Latin America. Cities such as Lima, Arequipa, Trujillo, Piura, and Chiclayo have the highest population and are the main drivers of economic activity and retail development, however, as the best deals run out in the larger cities, investors are increasingly looking for opportunities in smaller, interior cities (provinces) .
Peru’s international retailer presence continues to grow. Brands found in Peru’s shopping centers include : Adolfo Dominguez, Armani Exchange, Benetton, Bvlgari, Carolina Herrera, Cartier, Calvin Klein, Cat, Emporio Armani (coming soon), Esprit, Ermenegildo Zegna, Floorsheim, Guess, Givenchy, Hugo Boss, Hush Puppies, Levi’s, Kenneth Cole, Juicy Couture, Nike, Payless, Radio Shack, Salvatore Ferragamo, Versace, and others. QSR brands include KFC, McDonalds, Pizza Hut, Domino’s, Dunkin Donuts, Starbucks, and casual dining such as Chili’s, TGI Friday’s, Benihana, Tony Roma’s, etc. Gap has plans to enter Peru in 2013 through a subsidiary. First movers are grabbing the best locations in the highest-profile cities and offering complementary services, such as in-store-credit.
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