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Retail Industry Offers Huge Potential, Says DHL

May 6, 2014

CAPE TOWN, South Africa, May 6, 2014 /PRNewswire/ –

Retail expansion is key to DHL Express’ Africa business strategy. This is according to
Sumesh Rahavendra, Head of Marketing for DHL Express, Sub Saharan Africa. The recently
released A.T Kearney African Retail Development Index further validated the company’s
plans as it ranked the top 10 countries in Sub-Saharan Africa for retail expansion and
highlighted Rwanda, Nigeria, Namibia, Tanzania and Gabon as Africa’s most attractive
markets for retailers looking to expand.

According to Deloitte, Africa’s middle class has tripled over the last 30 years, and
the current trajectory suggests that the African middle class will grow to 1.1 billion in
2060, making it the world’s fastest growing continent. This growth, coupled with the
forecasted GDP growth of over 6% which the International Monetary Fund (IMF) is
predicting, drives the potential for retail growth on the continent significantly through
increased purchasing power and consumer demand.

The growth of ecommerce and access to technology has further upended the traditional
shopping experience for consumers, and retailers are increasingly beginning to maximize
the opportunities arising from the growing number of digitally-empowered consumers, who
are opting to purchase goods via ecommerce channels

“We are now in a position to directly relate growth in our retail footprint to growth
in our earnings so we know the potential is huge.” says Rahavendra.

According to the index, African retailers such as South Africa’s Shoprite, which
operates in more than 16 African countries, and Nakumatt, which is based in Kenya and has
stores in neighbouring Uganda, Rwanda, and Tanzania, have done most of the expansion, but
global retailers are moving in. In 2011, Wal-Mart acquired South Africa’s Massmart, and it
plans to open 90 supermarkets across Africa over the next three years.

DHL Express, who has a retail presence in over 2400 outlets across Africa, will
continue its aggressive expansion strategy in Africa in 2014. “We have made great progress
in making the global market and world at large more accessible and connected by increasing
the number of points where customers can access DHL and our global network. This allows
anyone – from a student to a small business – to access over 220 countries and
destinations that we serve.”

Key retail markets for DHL currently are Nigeria, South Africa, Kenya, Tanzania,
Uganda, Ghana, Senegal, Côte d’Ivoire, DRC, Zambia and Zimbabwe.

Commenting on the general retail landscape across Africa, Rahavendra adds, “Supply
chains in Africa are more challenging than many other markets in the world. The key to
success is understanding these challenges in order to offset the risks versus the
opportunity which the continent offers. This knowledge will allow retailers to service
markets with a supply chain that is agile enough to respond quickly to sudden or
unexpected changes, flexible enough to customize products and efficient enough to protect
margins. We have been active on the continent for over 36 years, and being the only
international express company to operate our own airline and extensive infrastructure
throughout Africa, we are well positioned to connect Africa with the world.”

DHL – The Logistics company for the world

DHL is the global market leader in the logistics industry and “The Logistics company
for the world”. DHL commits its expertise in international express, air and ocean freight,
road and rail transportation, contract logistics and international mail services to its
customers. A global network composed of more than 220 countries and territories and about
285,000 employees worldwide offers customers superior service quality and local knowledge
to satisfy their supply chain requirements. DHL accepts its social responsibility by
supporting environmental protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 55 billion
euros in 2013.

For more information: http://www.dpdhl.com [http://www.dp-dhl.com ]

Stock images available: http://www.dpdhl.com/en/media_relations/media_library.html

        Media Contact:
        Megan Collinicos. Head: Advertising & Public Relations, Sub-Saharan Africa
        DHL Express
        Tel +27-21-409-3613 Mobile +27-76-411-8570
        megan.collinicos@dhl.com

SOURCE Deutsche Post DHL


Source: PR Newswire



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