LONDON-CBRE has just released its results from its annual “How Global is the Business of Retail” survey, identifying trends in global retail expansion through responses by 326 of the world’s top retailers in more than 200 cities. Here are the top five lessons learned:
1. London’s retail market is still the number one draw.
Retailers, especially those from the United States, gravitate more toward London to try out or open new stores. Peter Gold, head of EMEA cross border retail for CBRE, said in a statement that retailers looking to go global are staying safe by choosing markets such as London, considered a safe haven. Dubai is in second, New York City remains in third position, Moscow moved up to a tie with Paris for fourth and Hong Kong is fifth.
2. US retailers look outward because their local market is saturated.
Gold said US retailers are picking the United Kingdom, particularly London, for new locations because of the lack of a language or cultural barrier. American retailers are the most global, according to the survey results, with 74% being present in all three major regions.
3. European retailers favor the Middle East
Dubai is the most popular destination for European retailers, with 60.1% of all European companies having a store in Dubai, followed by Istanbul (48.6%), Kuwait City (44.3%), Riyadh (44.3%) and Jeddah (42.1%). However, Dubai dropped a few points in this year’s survey due to a handful of retailers exiting the market.
4. Asian retailers are less traveled, but have more local spaces to fill.
Asian retailers, especially in China, are still trying to expand into the unexploited opportunities in their own regions. Surprisingly, Kazakhstan was the most sought after city for new retail entries, with 18 new locations moving into the city in part because of major infrastructure improvements and new shopping center space. China still leads, by far, in retail development.
5. Global retail growth continues despite uncertainty
About 74% of the countries in the survey reported seeing at least one new retailer enter the market last year, and the overall global footprint of retailers grew 2.1%, a similar rate from last year.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
