Study: London top target for international retailers; North American retailers continue to expand aggressively
New York -- London has reclaimed the number one position as the most targeted market for international retailers, according to a survey by global property adviser CBRE. It was followed by Dubai, New York City, Moscow and Paris.
CBRE’s annual survey -- now in its fifth year -- mapped the global footprint of 326 of the world’s top retailers across more than 200 cities to identify trends in global retail expansion at national and local levels. The report, “How Global is the Business of Retail?,” found that retailers expanded into a wide range of markets in 2011, with 74% of the countries in the survey seeing at least one new retailer enter the market last year. The overall global footprint of retailers grew 2.1%, similar to the previous year, demonstrating that retailers continue to grow their cross-border businesses in spite of a challenging consumer environment.
Attracting more than half (55.6%) of all international retail brands surveyed, London reclaims the outright number one position after sharing top spot with Dubai last year. London benefited from a mini-boom in 2011 as tourist spending boosted a relatively robust local economy, and remains a key hub for retailers looking to expand into Europe. The United Kingdom also retains number one position as the most penetrated global country with 56.7% of retailers in the survey present there.
“London is generally the first port of call for global retailers, but once they have established a presence in the capital, they are willing to extend their reach into other major U.K. cities, as well as major regional shopping centres such as Trafford Park, Meadowhall and Bluewater.” Peter Gold, head of EMEA Cross Border Retail, CBRE
Dubai (53.8%) dropped into second position due to a handful of retailers exiting the market. New York (43.9%) remains in third position, while Moscow (43.2%) moves up the rankings following a number of new market entrants in 2011 to join Paris (43.2%) in fourth position ahead of Hong Kong (40.5%). Kuwait City (39.5%) is another big mover, rising to eighth position from 12th place last year.
North American retailers are by far the most global with 73% present in all three regions (Europe, Middle East and Africa; Asia Pacific; The Americas), compared with 44% of European retailers and 23% of retailers from Asia Pacific. London is the number one city targeted by American retailers with 64.7% operating at least one store there, closely followed by Dubai (61.2%) and Kuwait City (49.3%) in third position.
When looking at the most targeted countries by global retailers, the United Kingdom holds onto first position in the rankings closely followed by the United Arab Emirates (53.1%) and the United States (50.3%). Spain is in fourth position (47.5%) closely followed by China (47.2%), with France and Germany (46.9%) joint sixth in the rankings. Russia (44.5%), Italy (43%) and Saudi Arabia (41.1%) make up the remainder of the top 10.
Further CBRE research into the number of new store openings in the past year reveals that Europe was the most targeted region at city level accounting for 48% of new entries, followed by the Middle East and Africa with 22%, and Asia with 14%. North America, Pacific, and Latin America attracted 8%, 6% and 1% respectively.
CBRE Group, based in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenues).