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International expansion still important for retailers



Although costs are increasing and economic prospects are uncertain, retailers still place international expansion near the top of their lists for this year, according to CBRE Research.
CBRE has revealed that US retailers are very active, with around 16% of US brands preparing to expand internationally.  Approximately 43% of US retail brands have their focus on Hong Kong, Japan and China.  American retailers are tied with the UK and Germany at 16%, whilst 11% of retailers in Italy are planning global expansion.

Retail brands originating in Germany, UK, US and Italy are the most active

CBRE’s executive managing director of Retail Services, Anthony Buono, said with the challenges facing retailers due to cost increases, consumer behavior changes and omni-channel delivery, it has become very important to have an effective network of stores to represent their brand.  He added that retailers are aware that physical stores provide a positive consumer experience, hence they will continue to open new stores.

Around 47% of participating survey retailers stated that uncertain economic prospects and cost increases are their main concerns for this year, however, this is not stopping them from going ahead.

Germany has been ranked as the most targeted retail market globally, with 40% of retailers having plans to open a store within the country during 2015.  The UK is second on the list at 33%, with France third at 31%.  The US is ranked 7th with 21%.

The main reason for choosing Germany is opportunity.  Retailers are able to target more than 30 large cities with very high purchasing power within the country.  In the UK, London remains the most popular target.  France is attractive to retailers because of its mature market and a huge number of very successful centers.

CBRE stated that around 21% of retailers have plans to open one to five stores within Africa, the Middle East and Europe, with around 11% planning to open one to five stores within North America, during 2015.

The number of retailers with plans to open in excess of 40 stores has declined by 9% during 2015.




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