Our publications

The retail sector - An investment perspective

The global retail sector has faced unprecedented challenges in 2008 and 2009. This has included volatility in commodity prices, fear of inflation givingway to fear of deflation and then fear of future inflation fromfiscal policy, and consumers being affected by the ongoing credit crisis.

The consensus view is that the resulting market conditions are forecast to continue throughout 2009/2010.

3i has significant investment experience in the retail sector, and its cyclical nature, as demonstrated by the numerous retail investments we have made around the world over the last two decades. We remain committed to investing in the retail sector which accounts for 20% of the global economy and have refined our investment philosophy to focus on investing in “winning retail brands to accelerate their growth”. We believe that current market conditions will lead to a polarisation of market participants, between winners and losers, with the winners benefitting from the trends we have identified below.

Through our international network of contacts and partnerships with online, brand and sourcing specialists we believe 3i is uniquely positioned to assist owners, management teams and their businesses in realising their full potential and creating value.