Los Angeles, May 27, 2014 – Paris is the world’s hottest
global retail market attracting 50 new brands last year, while France is ranked
as the leading country for new entrants, according to the latest edition of How Global is the Business of Retail? by
property advisor CBRE Group, Inc.
The 2014 report, which tracks retailer’s movements
in 2013, found that the overall footprint of global retailers at
country level grew by 1.7%. More than half of retailers (51%) are now present in all
three major global regions, The Americas, Europe Middle East and Africa (EMEA)
and Asia Pacific, a slight increase on the previous year.
focused on more mature markets in 2013, with 18 of the top target cities considered
mature markets compared with only 14 the previous year. 83% of the survey
cities saw at least one new entrant throughout the year (compared with 81% the
year before); with the top target markets seeing a 28% rise in new entrants.
number of new entrants at city level was up by 26% year-on-year, with an
increasing number of retailers crossing borders to grow their businesses. Paris
has risen in popularity among the cities most attractive to retailers welcoming
50 new entrants over the year, including 10 new Luxury & Business Fashion brands.
Paris benefitted from three new shopping centers in
but it was the prime high street locations that attracted most global brands. Competition
on these high streets between luxury brands is fierce due to surging demand
from tourists, especially from China.
France also topped
the table of the hottest countries ahead of Japan and Hong Kong. France has
seen a renewed confidence in the market. Paris was the main point of entry
for many retailers and has seen rents increase to decade highs due to significant
interest from global retailers for the limited amount of available prime space.
Paris was not the only target market; retailers also chose nine other French
cities for their first store.
Tokyo is second as
the most attractive city for global retailers, seeing double the number of new
entrants during 2013 (48) than it did in 2012, reflecting renewed confidence in
the economic prospects of Japan. Half of all new entrants (24) came from the U.S.,
while a further 18 were from Europe. Hong Kong and Abu Dhabi were the third and
fourth ‘hottest’ markets with 43 and 42 new entrants respectively.
London is the home of
more international brands than any other city, yet it still attracted 31 new
market entrants last year. Other cities in the top ten included Beijing,
Moscow, Shanghai, Frankfurt, Taipei and Singapore.
Jose Luis Martin,
EMEA Senior Director of Cross Border retail, CBRE, commented:
economic prospects in Western Europe and North America is leading global
retailers to refocus their expansion plans on mature markets and the world’s
major retail destinations, with Paris, Tokyo, London and Berlin the top targets. Retailers have also turned their attention to recovering European
markets and Asian and South American cities where they are still under
shopping center development is also at an all-time high and is providing the
opportunity for retailers to enter new markets, particularly in Asia, Latin
America and Eastern Europe. Owners are putting
sizable resources into revamping, extending and freshening up their existing
centers and securing major international brands is a key part of this strategy.
“The growth of the online environment has also elevated the importance
of the brand – not just among luxury retailers, but across the retail spectrum
with consumers seeking out aspirational brands as well as high street and value
offerings, and this is driving demand for new stores.”
Retailers from the
Americas are by far the most global, with 80% present in all three regions,
compared with 48% of European retailers and 25% of Asia Pacific retailers. The
maturity of the American market has encouraged retailers to cross borders and to
extend their global reach in order to grow their companies. U.S. retailers
expanding into EMEA represented 40% of cross-border movements by American
retailers, 35% were entries into Asia, and only 18% were entries into other
countries in the Americas region.
Naveen Jaggi, Senior Managing Director, Retail
“The maturity and
density of the American market is encouraging retailers to look outside their
home borders in order to seek growth. Retailers from the U.S. were by far the
most active in their expansion with at least one American retailer entering 45
of the 61 countries surveyed.
“London remains the
top market for American retailers that are looking to move out of their home
region. The proportion of American retailers with a presence in London has
risen 4.2% since 2012 and two thirds of retailers based in the Americas are now
present in London.”
The Luxury and
Business Fashion sector accounted for the highest proportion (24%) of new
market entrants globally. One third (32%) of all new entrants to the Americas
were from this sector which is a direct reflection of the improved outlook for
U.S. consumption. Luxury and Business Fashion retailers also proved to be very
active in EMEA accounting for 24% of new entrants.
Notes to editors:
CBRE’s annual survey,
now in its seventh year, maps the global footprint of 334 of the world’s leading
retailers across more than 189 cities, tracking cross-border retailer
movements. It also looks at the markets retailers have targeted in 2013 and provides a definitive benchmark against which to measure future changes
in the global retail environment through a global
ranking of countries and cities which have been most successful in attracting
leading international retailers.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and
S&P 500 company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (in terms of 2013
revenue). The Company has approximately
44,000 employees (excluding affiliates), and serves real estate owners, investors
and occupiers through approximately 350 offices (excluding affiliates)
worldwide. CBRE offers strategic advice and execution for property sales and
leasing; corporate services; property, facilities and project management;
mortgage banking; appraisal and valuation; development services; investment
management; and research and consulting. Please visit our website at www.cbre.com