Remember when expanding to Latin America pretty much was defined as opening in Mexico? A number of retailers have been there and done that, so brands are looking even farther south, to Central America. The announcement that Cold Stone Creamery will debut in El Salvador during the fourth quarter is the latest sign that this region, often overshadowed by the larger Mexico and a number of countries in South America, increasingly is attracting attention.
Walmart, for example, is opening 149 stores in Mexico and Central America this year.
Perhaps spurred by the expansion of the Canal, Panama, where TV network Nickelodeon opened its first retail outlet, ranks 14th on A.T. Kearny's Global Retail Development Index. Other global retailers expected to open there include Michael Kors, American Eagle Outfitters, Gap, Cotton On, Ted Baker and Paul Smith.
Costa Rica ranks 24th, but should move up the ranks, says the A.T. Kearny report, as the middle class expands. Such brands as Gap, Guess, Payless, Tommy Hilfiger and Aeropostale already are in the country, the company reports.
The result: Rents are rising, according to local reports. Metro areas in Costa Rica are reporting that rents per square meter rose 13 percent over the last two years, and new projects are being developed.
This seems to be yet another case of getting in to a market while the getting is good.
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