How Global is the Business of Retail?

By analysing the brand sectors that have been expanding and the flow of cross-border expansion we are able to interrogate what this means and what impact this is likely to have.​

Hot Markets
At least half of the 164 cities surveyed saw more than five new openings in 2014. The number of retail brands looking to enter new markets increased by 14% (based on a like-for-like comparison, in terms of cities reviewed).

As might be expected, Asia features heavily on the list of target cities with six out of the top 15 cities from the region.

Doha, Toronto, Manila, Stuttgart and Istanbul are all new entrants this year in terms of target markets, suggesting that retailers are looking for new markets of opportunity.

Tokyo topped the list of target markets in 2014 with 63 new entrants. Leasing momentum in core areas remained strong, despite the mixed signals in the economy and an increase in the sales tax to 8% from April 2014.

Outlook
The core elements of globalisation, technology and demographic change continue to have a dramatic impact on the business of retail. As retailers look to drive market share and raise their brand profile through increased awareness they will continue to expand beyond their home territory.

We are seeing further expansion into diverse locations as the stores that have opened prove popular with the local consumers. The continued development and refurbishment of shopping centres and city centre high streets creates the perfect environment for retailers looking to further export their brand proposition around the world.