27 May 2015 –Tokyo
is the world’s hottest city for new retailer expansion, attracting 63 new
retail brands, according to CBRE’s new “How Global is the Business of Retail?”
The report highlights that retailer
globalisation continued in 2014 as retail brands targeted a wide range of
locations across the world. A total of 164 cities were surveyed and half saw at
least five new retailers open a store.
Melbourne and Sydney remain the
hottest cities in Australia for new retail entrants, ranking equal 39th
with 12 new entrants, followed by Brisbane in 45th position with 11
Stephen McNabb, CBRE’s Head of
Research for Australia, commented; “Overall our analysis paints a favourable
outlook for retail space demand. Importantly, the survey shows how North
American and European retailers are seeking further expansion beyond their home
markets. It also highlights that Australia
is attracting its fair share of new retail entrants, in line with, if not
higher, than our global economic weighting.”
Leif Olson, Head of Retail Brokerage
Leasing, Australia, said the globalisation of the retail sector was providing
opportunities for retailers outside of saturated, mature markets.
“There is a natural progression for
retailers to open in south-east Asia and use that as a stepping stone into
Australia,” Mr Olson said.
“We have been fielding an unprecedented
number of enquiries from international brands seeking to establish a foothold
in Australia and gain an understanding of this market. CBRE has held national
tours with a number of high profile retailers in recent months and are working
on their roll out plans through Australia and NZ.”
At a global level, Asia features
heavily on the list of target cities of new retailer entrants accounting for six
out of the top 15 markets.
Tokyo ranked as the hottest market,
with space highly sought after despite the mixed signals in the economy and an
increase in sales tax of 8% introduced in April 2014. Singapore follows 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
London has retained its position as
the world’s most international shopping destination with 57.9% of international
retailers present there. In 2014 12 new brands opened in the city, including
American Eagle and Lululemon Athletics. The UK’s capital city continues to be a
magnet for international retailers who want to showcase and establish their
brand. London was closely followed by Dubai which has 55.7% of international
retailers present and Shanghai with 53.4%.
Mr McNabb commented; “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.”
US retailers dominated cross–border
expansion and accounted for 26% of expansion into new global markets, whilst
Italian retailers were the second most active accounting for 14% followed by UK
based retailers with 11%.
fashion retailers remained the most active sector accounting for 21% of global
expansion, followed by Luxury and Business retailers with 20%.
Mr Olson concluded; “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.”
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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 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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.