London was the most sought after city for retail investment in Europe last year, with 65 new brands opening, while Paris, the number two, was a distant second for Europe at 36. The success of London was partly attributed to the influx of tourists and the low pound, which pushed up interest from investors. Hong Kong took the number one spot with 87 new retain brands entering the market.
New analysis from CBRE, finds that the city of London is the second most sought after destination for the retail industry looking to expand their global operation. The city saw 65 new retailers open stores in the city last year – more than any of its European counterparts. The majority of the new premises were obtained by US-based chains and brands, while the total investment into the city by the retail industry hit a record €2.3bn (£2bn) last year.
The city benefits from a range of factors, including its brand, an influx of tourists leveraging the lower pound, although competition too has picked up among retailers vying to secure the most prestigious spots and their key target demographics. In terms of type, 25% have been Mid-Range retailers, while certain areas, such as Mayfair, attracted the largest number of with luxury retailers and making up 20% of all new retail entrants. However despite benefiting from this continued popularity, London has also been a high-profile victim of gentrification and commercialism over the past few decades, in no small part thanks to the continued desirability of the city as a financial hub.
In the total rankings, European cities remain the preferred destination for global retailers at 43% of total new investments, up from 36% last year. This is in part due to the expansion of brands within the region across the wider market. Across the globe, coffee shops and restaurants saw the most new international expansions, at 22% of total expansions, specialist clothing stores (18%) followed, while mid-range fashion stores (17%) came third.
