“As e-commerce grows, retailers have become more deliberate and meticulous about how many stores they open and where they do so,” says Anthony Buono, chairman of CBRE's global retail executive committee. “Their global expansion favors the tried-and-true global gateway markets where they get the most exposure for their brands and access to huge populations with disposable income.”

If North America is less popular as a destination for retailers expanding internationally, then the opposite is true when it comes to the retailers engaged in this sort of growth. By a wide margin, US merchants remain the most active with regard to international expansion, says CBRE, citing the dollar's strength relative to other currencies as one possible explanation.

At city level, 21% of expansion was by US retailers. The next most aggressive expanders were Italian retailers with 12% new-market penetration and French retailers at 11%.

“US retailers' expansion abroad is aided significantly by their strong brands and execution, especially for food and beverage operators,” says Brandon Famous, CBRE senior managing director and retail leader, the Americas. “The US retail market is relatively mature and somewhat crowded, so several American retailers instead are targeting Europe, Asia and the Middle East for much of their expansion into new markets.”

LOS ANGELES—International retail expansion decelerated somewhat last year from the more determined pace set in 2015 as retailers globally adjusted to e-commerce and shifting exchange rates, CBRE Group says in its 10th annual study of this sphere of activity. Retailer activity in crossing borders increased by 2% in 2016, compared to 3.1% the year prior.

The moderate slowdown likely resulted in fewer retailers debuting in emerging cities, CBRE says. Only one up-and-coming market, the Croatian city of Split, ranked among the top destinations for expanding retailers in '16.

To gauge retailers' expansion activity, CBRE surveyed 166 cities across 51 countries on how many international merchants had debuted in their markets over the course of last year. The firm found that Europe has expanded its dominance as the preferred new destination for expanding retailers, likely on account of European retailers' current preference for expanding to other countries within their home continent rather than in markets where currencies have become expensive, such as the US.

According to CBRE, 43% of retailers' global expansion into new cities in 2016 occurred in Europe, up from 36% the year prior. Asia claimed 28% of international retail expansion last year; the Middle East and Africa claimed 12% and North America, just 11%.

“As e-commerce grows, retailers have become more deliberate and meticulous about how many stores they open and where they do so,” says Anthony Buono, chairman of CBRE's global retail executive committee. “Their global expansion favors the tried-and-true global gateway markets where they get the most exposure for their brands and access to huge populations with disposable income.”

If North America is less popular as a destination for retailers expanding internationally, then the opposite is true when it comes to the retailers engaged in this sort of growth. By a wide margin, US merchants remain the most active with regard to international expansion, says CBRE, citing the dollar's strength relative to other currencies as one possible explanation.

At city level, 21% of expansion was by US retailers. The next most aggressive expanders were Italian retailers with 12% new-market penetration and French retailers at 11%.

“US retailers' expansion abroad is aided significantly by their strong brands and execution, especially for food and beverage operators,” says Brandon Famous, CBRE senior managing director and retail leader, the Americas. “The US retail market is relatively mature and somewhat crowded, so several American retailers instead are targeting Europe, Asia and the Middle East for much of their expansion into new markets.”