Retail

The second-largest contributor to GDP after construction, the retail sector reported 6.7% year-on-year growth in 2012, and continued to post 5% growth in the first half of 2013. The rapid development of the sector has meant a significant advantage for retailers that established a presence in the country in the early 2000s, and as a result a few conglomerates have dominant stakes across various retail segments. Land availability in Peru’s biggest cities remains a challenge, as does infrastructure, particularly in more remote regions. With the industry’s fundamentals set to continue to support growth in the coming years, retail should retain its high ranking in terms of both investment and contribution to national GDP, while the sophistication of consumer loans, which have grown six-fold over the past decade, is also expected to help spur development.