Global retailers have continued to grow their store networks in a wide range of international markets despite challenging conditions, according to the 2011 edition of 'How Global is the Business of Retail?' by leading global real estate adviser CB Richard Ellis (CBRE).
The UK maintained its position as the world's most international retail market for the fourth year running, attracting 58% of all international retail brands surveyed. The UK is closely followed by the United Arab Emirates (UAE) with 54%, and the US with 50%.
Europe continued to dominate CBRE's rankings of the most highly penetrated global retail markets, with the continent's five largest economies all featuring prominently in the top 10 international retail destinations: UK (1st), France (4th), Spain (5th), Germany, (6th), Russia (8th), and Italy (10th). However, the top 20 is increasingly global as retailers target key emerging markets in addition to established retail destinations. Turkey experienced the largest growth in retailer presence in the past year, with 39% of all retailers surveyed now located there, up by 2.2%. Belgium, Poland, Egypt, Vietnam, Brazil and Mexico also saw retailers increase their presence by 1.5% or more.
International expansion remains a key strategy for retailers throughout the world, with 40% of new openings occurring outside the retailer's home region. Even though the pace of expansion has slowed, with the overall store footprint increasing by 2% in the past year compared with 4% in 2009 and 12% in 2008, some 21 countries saw five or more new retailer entrants last year. At a country level, retailers from North America expanded their global markets the most, growing their footprint by 2.6% on average, while European and Asia Pacific retailers both grew by 1.8%.
Peter Gold, Head of EMEA Cross Border Retail, CB Richard Ellis, commented: "Although the pace of growth slowed in 2010, retailers continue to grow their store networks in a wide range of international markets, targeting both mature and emerging countries. While it is clear that the globalization process is ongoing, two factors will limit the rate at which retailers expand in coming years. Firstly, a limited pipeline of new space in many markets will restrict access to prime retail locations, and as a result, more retailers may look to grow their business via online platforms rather than expanding their physical store network."
Looking at CBRE's research into new store openings, India tops the rankings with the largest number (eight) of new r