Retail
From The Report: Panama 2015
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Profiting from stable economic growth, Panama’s retail sector has continued to expand over the past two years. The entry of luxury brands to the local market has diversified the retail landscape while growing demand for retail space has also fuelled the construction boom. The sector’s outlook is promising, with a number of indicators pointing toward continued growth in retail consumption. Between 2007 and 2010 poverty levels decreased by 11%, while the middle class, which now represents nearly 40% of Panamanian society, according to World Bank statistics, grew by 10%. The country also boasts the lowest level of inflation in Central America, with a rate of 2.6% at end-2014. Moreover, it has experienced a significant increase in the number of foreign residents, which have become an important high-end target for retail chains. Buoyed by the rising popularity of e-commerce among local consumers, the online retail market is particularly promising.

This chapter features an interview with Abdul Waked, President, Grupo Wisa.

Articles from this Chapter

Overview

A green light: With a promising economy and major investments, the sector is receiving a large boost
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Despite slower GDP growth in 2014 – 6.5% compared to 8.4% in 2013 – Panama remains one of the fastest-growing economies in Latin America and the Caribbean, with regional counterparts averaging 5.5%. According to figures from the World Bank and the IMF, while the Panamanian economy is currently the 13th largest in the region, with a nominal GDP of $43.8bn, growth is set to continue at around 6% annually, which will make it the ninth largest in the region by 2026-27. Profiting from the advantageous…

Analysis

The finer things: Location and favourable conditions make the country an attractive luxury retail destination
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The combination of Panamanians’ growing purchasing power and the presence of foreigner visitors eager to spend in upscale boutiques has contributed to the latest boom in the luxury retail sector. The tangible impact of this growth can be seen in the influx of international high-end brands and ongoing investments in the construction of luxury retail space. Looking Up The prosperity of Panamanian customers has encouraged upscale brands such as Burberry, Louis Vuitton, Gucci, Fendi and Hermès to…

Interview

Abdul Waked, President, Grupo Wisa: Interview
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Interview:Abdul Waked How can distribution chains in Panama enhance efficiency to reduce the cost of logistics? ABDUL WAKED: Logistics implies product movement through the different levels of a supply chain, in a profitable and efficient manner. In order to achieve higher efficiency and profitability, adequate inventory levels must be defined at each level of the chain. Moving fewer inventories requires lower transportation, storage and manipulation costs, while improving cash flow efficiency.…