London remains worlds most international shopping destination
A new report has named Tokyo as the worlds hottest city for new retailer expansion but London has retained its number one position as the worlds most international shopping destination.
CBRE’s "How Global is the Business of Retail?" report reveals that the Japanese capital attracted 63 new retail brands and that space in core areas of Tokyo remains highly sought after despite the mixed signals in the economy and an increase in sales tax of 8% introduced in April 2014.
Singapore followed Tokyo with 58 new retail brands and Abu Dhabi saw the arrival of 55 new retail brands, ranking the city in third place in the top target markets by new retailer entrants.
However, London retained its number one position as the world’s most international shopping destination with 57.9% of international retailers having a presence in the city. In 2014, 12 new brands opened in London as it continues to be a magnet for international retailers who want to showcase and establish their brand. In second place came Dubai, which has 55.7% of international retailers present, while Shanghai came in third place with 53.4%.
Andrew Phipps, head of EMEA retail research at CBRE, said: "The continued desire for expansion into new cities remains high for international brands and we are seeing a great deal of expansion into Asia and in particular into Tokyo, Singapore and Taipei, whilst, the desire to expand into the Middle East shows no sign of slowing down.
"However, more established markets such as London continue to draw international brands as it attracts a phenomenal amount of international visitors and overseas shoppers making it a truly global shopping destination. It remains key for international brands to have a strong presence in London, fundamentally due to its size, transparency and position on the global retail stage."
The report highlights how retailer globalisation continued in 2014 as brands targeted a wide range of locations across the world. 164 cities were surveyed and half saw at least five new retailers open a store.
Asia features heavily on the list of target cities of new retailer entrants with six out of the 15 cities from the region. Paris and Moscow were the only European cities that featured in the top 10 target markets, attracting 41 and 42 new entrants respectively. US retailers dominated cross–border expansion and accounted for 26% of expansion into new global markets. Meanwhile, Italian retailers were the second most active accounting for 14% followed by UK based retailers with 11%.
Peter Gold, head of EMEA cross border retail at CBRE, added: “The core elements of globalisation such as technology and demographic changes are continuing to have a dramatic impact on the retail business. As retailers look to drive market share and raise their brand profile, they will continue to expand and look for opportunities beyond their home territories. We are seeing brands open in diverse locations around the world such as Taipei, Doha and Manila which all feature in the top 15 target markets as well as more recognised cities like Paris and Dubai where retailers are opening more stores as these prove successful.”
Mid-range fashion retailers remained the most active sector accounting for 21% of global expansion, followed by luxury and business retailers with 20%. Expansion into the EMEA region was dominated by mid-range fashion brands accounting for 26% of activity, followed by specialist clothing retailers with 18%.
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