Rising incomes and urbanisation are broadening the appeal of modern retailing, with more consumers able to access these channels. However, informal retailing remains strong, while poor infrastructure hinders retailing development.
Tanzania's retail industry is expanding rapidly due to increased urbanisation, population growth, and improvements in the market environment and infrastructure. The recent registration of new businesses demonstrates the expansion of the business environment.
With most of the population in Tanzania still living below the poverty line, traditional and informal retailing remain the most popular retail channels for most consumers, with consumers usually shopping for groceries daily, while purchases of non-grocery products tend to be saved for special occasions. Traditional retail outlets are prevalent throughout the country and are the default option for most consumers.
Tanzania's population is growing at a quick pace of and the country has a youthful population (more than 60% of the population is under 30) and a small elderly population (less than 5% of the population is above 65 years old). Children and young people represent a massive opportunity for retailers.
The transport infrastructure remains insufficient in Tanzania and low-income consumers must rely on local retail outlets or incur the added expense of travelling to stores in more distant locations. Most people in cities still use low-priced, but overcrowded, mini-buses to commute.
Informal retailing is the dominant form of retailing in Tanzania, accounting for an estimated 90% of the total market size. Informal retailing occurs widely in open-air markets.
Over the forecast period, retailing is expected to increase by 12% due to urbanisation, population expansion, the favourable trade environment, infrastructure, and the government’s commitment to assist local businesses. As a result, local brands will continue to expand their value shares as the government protects and assists domestic manufacturers.
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Understand the latest market trends and future growth opportunities for the Retailing industry in Tanzania with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
If you're in the Retailing industry in Tanzania, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Sales of new and used goods to the general public for personal or household consumption. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts, fuel. Also excludes foodservice, rental and hire and wholesale industries (Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retailing is the aggregation of Store-based retailing and Non-store retailing. Retailing excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, ie retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer which is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retailing. In relation to click and collect purchases (i.e. where purchases are made over the internet but picked up at store) where the sales data is attributed depends on where the payment is made: If payment is made in store, then the sale is included in store-based sales. If payment is made over the internet, then the sale is included in internet retailing.See All of Our Definitions
This report originates from Passport, our Retailing research and analysis database.
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