Fifteen years ago, global retailers in developing markets were true pioneers: either they held the deed to a beautiful tract of land and a future of growth, or their best-laid plans moldered in a foreign grave. It was a true risk-reward play: global expansion could bring tremendous growth and benefit, or surprising failure and disaster.

Today's global retailers get it. They have become more strategic in their expansion and in avoiding the operational pitfalls of entries into developing markets. Using e-commerce, they are pressure-testing demand in new markets to reduce risk, and they are taking advantage of financial vehicles such as credit cards and cash-on-delivery to help increase demand. The leaders are also identifying the unique challenges of each market, from India's foreign direct investment policies to Brazil's high duties to Turkey's high credit card regulations. And even after they get a foot in the door in major metropolitan shopping districts, retailers are forced to strategize quickly to capture growth in tier 2 and 3 cities before the field becomes too crowded.

The overall theme of A.T. Kearney's 2014 Global Retail Development Index™ is continued expansion. Yes, there were some notable contractions in the past year—Walmart pruned its portfolio in China and Brazil, and Tesco's more cautious approach to China included some store closings and a new joint venture—but for the most part retailers are continuing their push into developing markets.

In particular, regional players are flexing their muscles, using their proximity as a competitive advantage to steal share in neighboring markets. Chile's Falabella and Cencosud have begun aggressive growth plans to widen their footprint across Latin America, and UAE-based LuLu Hypermarkets and Majid Al Futtaim have begun expanding in the Gulf region. South African retailers Shoprite and Woolworths have