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Retail in BRICS countries offers a powerful combination of scale, demographic momentum, and untapped consumer segments. However, international retailers entering these markets face a turbulent landscape shaped by inconsistent regulations, protectionist trade policies, and infrastructure deficits. Governments often prioritize domestic competitors through subsidies, tax advantages, or local sourcing mandates. Moreover, informal retail remains dominant in several BRICS economies, making formalization—and thus scalability—a challenge. Political interference in pricing (especially for essentials), foreign ownership restrictions, and shifting e-commerce laws add further layers of complexity.

In the last five years, market trajectories have varied widely. Walmart’s expansion in India via its majority stake in Flipkart has been a relative success, tapping into e-commerce growth while avoiding some of the restrictions on physical foreign retail stores. Conversely, French retail giant Carrefour exited China in 2019 and Brazil in 2023 due to underperformance, rising operational costs, and strategic mismatches. In Russia, global players such as IKEA and H&M were forced to suspend or fully withdraw operations in 2022 due to sanctions and reputational risks following the Ukraine war. South Africa has seen moderate retail growth, but sustained inequality, high unemployment, and frequent load-shedding have strained consumer demand and supply chain continuity.

Foreign retailers must also contend with fast-shifting consumer behaviors, digital disruption, and localization demands. Failure to tailor offerings to local preferences—ranging from product mix to payment solutions—can derail expansion plans. Additionally, e-commerce is often regulated separately, with distinct cybersecurity and data localization laws, particularly in China, Russia, and India. The ability to manage dual-channel models (physical and digital), protect brand integrity, and respond to regulatory shocks is essential for long-term success.