Germany remains the most popular global market for retailers in 2015 – not China.
While international expansion remains high on the agenda for retailers in 2015, despite uncertain economic prospects and cost escalation, new research from global property advisor CBRE shows waning enthusiasm for Asian forays.
Some 47 per cent of retailers surveyed in the annual How Active are Retailers Globally indicated that unclear economic prospects and cost escalation, largely due to increases in rental costs and lack of quality retail space, are the biggest concerns for 2015. However, despite these challenges appetite for international expansion remains a strong focus as retailers continue to invest in their store network throughout 2015.
Germany has retained its number one position for the second consecutive year as the most popular retail market in the world with 40 per cent of retailers planning to open a store there in 2015. The UK is second with 33 per cent and France third with 31 per cent of retailers.
Meanwhile, Asia retail brands are more interested in South Korea (50 per cent) than China. Forty-three per cent of US-based retailers are looking at Japan, China and Hong Kong.
Global retailers are said to be attracted to Germany largely due to the opportunity to target more than 30 large cities with high purchasing power. Despite the huge interest in the German market retail rents in most of the markets have remained stable or have seen a slight increase. The UK also continues to be a popular target for overseas retailers as demand for store space remains resilient, especially in London. This is evident from the strong prevailing rental growth and high premiums.
France follows closely behind the UK attracting retailers due to its mature market with several strong cities and a large number of very successful shopping centres across the country. Retailers are generally attracted to the ability to get critical mass quickly, and have focussed on Paris ]before expanding into other cities. Recent changes to Sunday trading days from five to 12 per year in some areas, and the creation of Zones Of International Tourism, which will allow Sunday opening all year round is further improving the attractiveness of France to retailers.
