According to the latest edition of global property advisor CBRE's How Global is the Business of Retail?, Paris is the world's hottest global retail sector, welcoming 50 new brands last year, and France is the leading country for new entrants. buy property in qatar
The total presence of global retailers increased by 1.7 percent at the country level, according to the 2014 survey, which monitors retailer movements in 2013. More than half of retailers (51%) now operate in all three major global regions: the Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific, up slightly from last year.
In 2013, retailers concentrated on more mature markets, with 18 of the top target cities becoming mature markets, up from 14 the year before. Throughout the year, 83 percent of survey cities had at least one new entrant (up from 81 percent the year before), with the top target markets seeing a 28 percent increase in new entrants.
The number of new entrants at the city level increased by 26% year over year, with more merchants crossing borders to expand their businesses. Paris has become one of the most appealing cities for retailers, with 50 new entrants this year, including 10 new Luxury & Business Fashion brands. In 2013, three new shopping malls opened in Paris, but it was the prime high-street locations that attracted the majority of global brands. Due to increased demand from tourists, especially from China, competition between luxury brands on these high streets is fierce.
France also came out on top of the list of hottest nations, beating out Japan and Hong Kong. In France, there has been a resurgence of investor confidence. Due to strong demand from global retailers for the small amount of available prime space, rents have risen to decade highs in Paris, which was the key point of entry for many retailers. Retailers selected nine other French cities as their first store locations in addition to Paris.
Tokyo is the second most appealing city for global retailers, with twice the number of new entrants (48) in 2013 compared to 2012, indicating renewed trust in Japan's economic prospects. A total of 24 new entrants come from the United States, with another 18 from Europe. With 43 and 42 new entrants, respectively, Hong Kong and Abu Dhabi were the third and fourth 'hottest' markets.
Despite the fact that London has the most foreign brands of any region, it still attracted 31 new market entrants last year. Beijing, Moscow, Shanghai, Frankfurt, Taipei, and Singapore were among the top ten cities.
"The improving economic prospects in Western Europe and North America are leading global retailers to refocus their growth plans on mature markets and the world's major retail destinations, with Paris, Tokyo, London, and Berlin the top targets," CBRE EMEA Senior Director of Cross Border Retail Jose Luis Martin said. Retailers are also focusing on reclaiming European markets, as well as Asian and South American cities where they are still underrepresented."
"Global shopping center growth is also at an all-time high, allowing retailers to expand into new markets, especially in Asia, Latin America, and Eastern Europe," says the report. Owners are investing a significant amount of money in revamping, expanding, and refreshing their established centers, and acquiring big international brands is a vital part of this strategy."
"The growth of the online world has elevated the importance of the brand - not only among luxury retailers, but across the retail spectrum, with customers finding aspirational products as well as high street and value offerings, and this is driving demand for new stores," says the report.
By far the most global are retailers from the Americas, with 80 percent operating in all three continents, compared to 48 percent in Europe and 25 percent in Asia Pacific. The maturity of the American market has enabled retailers to expand their global scope and cross borders in order to increase their businesses. 40 percent of cross-border movements by American retailers were into EMEA, 35 percent were into Asia, and just 18 percent were into other countries in the Americas region.
"The maturity and density of the American market is encouraging retailers to look beyond their home borders in order to seek expansion," said CBRE Senior Managing Director of Retail Services Naveen Jaggi. With at least one American retailer entering 45 of the 61 countries surveyed, retailers from the United States were by far the most involved in their expansion. For American retailers looking to expand outside of their home country, London remains the most popular destination. Since 2012, the percentage of American retailers with a presence in London has increased by 4.2 percent, and two-thirds of retailers from the Americas already have a presence in London."
Globally, the Luxury and Business Fashion industry had the largest proportion of new consumer entrants (24 percent). This sector accounted for a third (32%) of all new entrants to the Americas, which is a clear reflection of the improved outlook for US consumption. In EMEA, luxury and business fashion retailers were also very involved, accounting for 24% of new entrants.