U.S. retailers should remain aware that there is a looming invasion of international retailers into their turf.Not only are the British invading, but the Spanish, French, Italians and many others are also taking advantage of obtaining prime real estate as local brands close their doors.
The most recent indication of this shift to international brands is the announcement by Sears that it is preparing to lease space to Primark, the European retail group, in seven of its location. Primark is preparing to open its first store in the U.S. in Boston, during next year. Sears will however still retain a presence in six of the locations.
The senior vice president of retail services at JLL Retail, Michael Hirschfeld, said the biggest shifts during the past years have been a range of tenants entering the United States. He said that the luxury, mass-market businesses, such as Zara, H&M and Uniqlo have moved into the U.S, often taking away custom from the local retailers.
H&M opened 29 stores in the U.S. over a nine-month period ending August 31. On the other hand, Aéropostale has been struggling to compete against the fast-fashion brands and has confirmed that it will be closing 120 of its stores by the close of 2014. This is a much higher number than the original plan of closing 40 to 50. This figure is an additional number to the 125 P.S. By Aéropostale which have already been scheduled for closure.
JLL have released a new report which ranks the most attractive markets for international retailers. These are based on rent, vacancy levels and population growth forecasts. Markets with a marked international presence, such as Miami and New York City have been favored.