Retailers across the globe have reported a tough 2015, be it due to low sales, sluggish economy, or not so profitable holiday season… The latest CBRE report – ‘How Global is the Business of Retail CBRE’ – on cross-border retail activity brings out the overall picture of the year 2015.
According to the report, specialist clothing retailers witnessed growth of 2 per cent at country level and 1.3 per cent at city level, while mid-range fashion retailers expanded their reach by 1.8 per cent and 1.6 per cent, respectively. During the year, luxury fashion retailers grew by 2 per cent at country level and 1.5 per cent at city level. In terms of fashion categories, denim retailers and value sector noted growth at both country and city level, marking 2.6 per cent and 2.4 per cent surge, respectively.
Also Read – Millennials strengthen hold on Retail
Retailers stressed on a varied set of markets in 2015. 90 per cent of the surveyed cities saw at least one new entrant in 2015 (compared with 85 per cent in 2014 based on a like-for-like basis) and 30 per cent of the markets surveyed saw at least 10 new brands open a store. The composition of the top 20 target markets also changed, the report mentions.
The overall level of cross-border retail activity in 2015 zoomed 3.1 per cent on year-on-year. Hong Kong was the ‘hottest’ market in 2015, with 73 new brands opening stores in the country. Asia dominates the top 10 rankings, accounting for four of the top five most attractive markets. Singapore is at second spot with 63 new brands, followed by Tokyo (57), Taipei (47), Moscow (40), London (39), Dubai (38), Beijing (37), Bucharest (35) and Doha (29).
Also Read – UAE Grows Stronger for Retail
The report further informs that European retailers lead cross-border retailer activity, and are increasingly global in their outlook. European brands accounted for 59 per cent of new market entrants worldwide. Nearly half of Europe, Middle East and Africa (EMEA) brands targeted Europe in 2015. Besides, there was also an increased interest in expansion into North America, up from 3 per cent to 13 per cent in 2015.
