UK RETAINS TITLE AS MOST INTERNATIONAL RETAIL MARKET IN THE WORLD, WITH THE UAE HOT ON ITS HEELS
Global Retail Report Tracks Shifts in Global Retail Market Hierarchy
London, 5 April 2010 – The United Kingdom (UK) has maintained its position as the world’s most international retail market, according to the new edition of the How Global is the Business of Retail? report by leading global real estate adviser CB Richard Ellis (CBRE). Attracting 58% of all international retail brands surveyed, the UK is now closely followed by the United Arab Emirates (UAE) where 54% of international retailers are present. This emerging market’s growing ability to attract international retailers fuelled its rise as a global retail destination during 2009, seeing it take second position in CBRE’s top global retail markets ranking for the first time. Ireland’s country ranking fell slightly in 2010 although Dublin gained ground in the city rankings year-on-year.
CBRE’s annual survey – now in its third year – mapped the global footprint of 294 of the world’s top retailers across 69 countries, exploring the globalisation of the retail industry at national and city levels and highlighting differences between sectors and regions, thereby identifying changing trends in the patterns of global retail expansion.
Despite a bumpy year for retail markets across the world, the UK maintained the number one position in the top 20 most international retail markets ranking for the third year running. Overall, Europe continued to dominate the top 20, with all five of the largest European economies featuring in the top 10 international retail destinations: UK (1st), France (4th), Spain (6th), Germany (7th) and Italy (8th). However, the top 20 list has become considerably more global in the past year as retailers target key emerging markets in addition to the more established retail destinations. For example, the United Arab Emirates and China have rapidly expanded their international retail offer. As a result, China, for instance, has moved up the global ranking by two places in the past year to enter the top five for the first time, with 47% of retailers now present there. Reflecting the scarcity of international retail expansion in Ireland over the last 12 months, Ireland dropped three points in the country rankings in 2010 from 29 to 32. However, Dublin has moved up two points in the city rankings since last year from 57th most international retail market in 2009 to 55th in 2010.
Cormac Kennedy, Executive Director in the retail team of CB Richard Ellis, Dublin commented: “27% of international retailers surveyed have a presence in the Irish market which is very good in an international context. However, it is interesting that Ireland ranks in 7th place globally in terms of the number of mid-range fashion brands that are located here with 42% of these brands having a presence in the Irish market. While Ireland ranks highly in terms of the number of international retail brands trading here, this research highlights the clear opportunity for more international retailers to establish operations here”.
Emerging markets also continue to play a critical role in the global expansion strategies of international retailers. Despite the much-publicised economic challenges in the Middle East, this region is fast becoming a prime spot on the global retail map. The inherent medium-term growth potential of many emerging markets remains a key strategic magnet, helped by the fact that in some cases these markets have as yet only been targeted by relatively few international brands. Finding suitable real estate is a common barrier to entering a new market, and we are finding that the opening of new retail space and shopping centres are key triggers for international retailers considering a move into particular new markets. The current decrease in the development pipeline is likely to restrict the opportunities for retailers to expand further over the coming years.
Almost half of all retailers in the survey (49%) had some presence in each of the three main global regions, but their footprint varied widely. The most expansive retailers have a presence in over 60 countries and 170 cities. Other global retailers are present in all three regions, but in only five to 10 key countries and 10 to 15 major cities. Luxury retailers continued to expand in Asia, but those markets which saw most new retailer arrivals succeeded in attracting entrants from a wide range of retail sectors. The Middle Eastern markets also saw strong growth from the fashion sectors, but with the majority of new entrants coming from the Luxury and Business retailers. By contrast, the majority of new openings in Central and Eastern Europe were led by Value and Mid-Range retailers.
See below for a pdf download of the Executive Summary of our ‘How Global is the Business of Retail?' Report 2010.
For more information and a copy of the full ‘How Global is the Business of Retail?’ report for 2010, please visit: www.cbre.eu
Note to Editors:
In previous editions of How Global is the Business of Retail?, the country analysis has excluded domestic retailers in order to remove the effects of nationality bias with the sample. However, given that the sample has been expanded and now contains such a large number of retailers, in this edition the analysis includes all retailers operating within a country, including those based in the country concerned. This has retrospectively impacted the country-level rankings for previous years.
About CB Richard Ellis
CB Richard Ellis 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 firm (in terms of 2009 revenue). The Company has approximately 29,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis 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. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row. Please visit our website at www.cbre.com.