Private Capital
Capitalizing on Egypt's Retail Surge
06 Jan 2025
Investment Thesis
  • Robust retail market & high growth rate:
    • Retail expenditure in Egypt is projected to surpass US$ 100B within the next three years, driven by increasing consumption patterns
    • Egypt is expected to witness the highest retail market growth among its regional peers, with a CAGR of 8.7% over the next three years, outperforming UAE (5.6% CAGR) & Saudi Arabia (5.4% CAGR)
  • Untapped retail segments:
    •  Food constitutes over 50% of the addressable retail market, while other segments remain underpenetrated
    • Emerging opportunities in categories like electronics and apparel, which are already significant in other geographies, present attractive growth avenues for market players
  • Growing B2B opportunity on a global scale:
    • B2B platforms are emerging as a dominant theme, supported by millions of merchants onboarded globally by leading platforms, showcasing substantial headroom for growth in Egypt, where market leaders currently serve only 50-100K merchants
    • Global peers are building comprehensive ecosystems, including fulfillment and logistics capabilitiestechnology-driven solutions highlighting the future potential for Egyptian market players to expand and diversify their offerings
  • Target’s diverse business model proposition: Target operates through both marketplace and retail models, enabling it to cater to a wide range of consumer and merchant needs & drive greater traction across its platform
  • Target’s strong value proposition across stakeholders:
    • Retailers: Best-in-class digital order processing with streamlined supplier consolidation for end-to-end procurement
    • Manufacturers: Ability to deliver superior customer reach with industry-leading fill rates (~90%), enhancing operational efficiency
    • Wholesalers: Competitive platform features, including flexible return window low turnaround times (TAT) for payments and settlements









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