Asia Pacific Special Report - Retail Hotspots in Asia Pacific 2014
Favorable macro factors such as urbanisation and the expanding middle class continued to support new retailer expansion across Asia Pacific in 2014. The number of new entrants rose to 464, an increase of 23% y-o-y.
Tokyo saw the most new retailer entrants in 2014 on the back of improved economic conditions and increasing tourism arrivals. Underpenetrated markets in Australia such as Melbourne and Sydney also recorded growing interest from international retailers.
The Luxury and Business sector accounted for the greatest share of new entrants. However, the rate of expansion is slowing as retailers in this segment turn more cautious. The profile of retailers in this category is becoming more diverse, with activity no longer confined to the major luxury groups.
Retail landlords’ strategy of introducing more experiential elements to their shopping malls supported a strong increase in the number of new Coffee and Restaurant entries in the region in 2014.
Retailers from the United States remained the most active, accounting for 24% of new retailer entries last year. However, retailers from this region, particularly Japanese, South Korean and Australian groups, turned more active as the competitive environment in their home markets encourages a focus on more lucrative opportunities overseas.