Tokyo is World’s “Hottest” Retail Market

According to CBRE’s Annual “How Global is the Business of Retail, Tokyo is the world’s hottest market for retail expansion, attracting 63 new brands last year as leasing momentum in core areas remained strong, despite mixed signals in the economy and an increase in the sales tax to eight percent in April 2014, according to the latest report from CBRE.

The report—which tracks the target markets of new brands in 164 cities in 50 countries—U.S. retailers are the most active when it comes to expanding into new global markets. In 2014, U.S. retailers accounted for 26 percent of cross-border expansion. Primary expansion targets for Americas retailers are Asia (41 percent) Europe (33 percent), and the Middle East and Africa (12 percent).

Italian retailers were the second most active, accounting for 14 percent of cross-border expansion, followed by U.K.-based retailers (11 percent) and French retailers (10 percent). Globally, Europe accounted for 42 percent of retailer expansion, followed by Asia with 39 percent and the Middle East and Africa with 10 percent. North America was only a target for three percent of retailers.

“The core elements of globalization, technology and demographic change, continue to have a dramatic impact on the business of retail. Demographic shifts in many countries have resulted in changes in both spending power and shopping habits. Technology enables retailers to enter markets and evaluate performance more swiftly,” said Brandon Famous, Senior Managing Director, Retail Occupier Advisory & Transaction Services, CBRE. “Consumer traveling patterns mean that many brands are well known before they even enter a market and the pent-up demand for the chance to purchase locally creates a ready-made market before entry.”

Among the most active retail sectors globally, Mid-Range Fashion retailers led the field, accounting for 21 percent of global expansion, followed Luxury & Business retailers, with 20 percent, and Coffee & Restaurant and Specialist Clothing, each with 16 percent. When it comes to expansion into the Americas, Luxury & Business retailers were the most active at 26 percent, followed by Mid-Range Fashion representing 20 percent of total activity, and Specialist Clothing representing 14 percent.

“Consumers continue to view the physical store as their preferred mode of purchase and perhaps more importantly, as a point of social interaction,” Mr. Famous added. “Consumers view shopping as a leisure activity and the continued expansion of brands and the development/improvement of shopping locations gives them the opportunity to embrace this.”

 

WEB'S BEST

Top stories from across the globe

  • A Short History of Investing in Gold – and What to Expect for 2017
  • Asia Pacific's Top Six Credit Risks For 2017
  • The 5 Most Shocking News in 2016
  • Hazel Moore: Banks Are Completely Wasting Valuable Customer Data
  • Morgan Stanley CEO Makes First-Ever Stock Sales After Bank Rally
  • Former Goldman's Partner in Boutique Venture
  • Hong Kong and Singapore in Push for Fee Transparency
More

PHOTO GALLERIES

finews.asia Networking Event

finews.asia Networking Event

Show pictures

stars China Symposium 2016

stars China Symposium 2016

Show pictures

Compare my salary

Compare my salary

Feeling Underpaid? Benchmark your salary by job title, company and location. Find out where you stand in minutes.

compare my salary

Newsletter

Newsletter-SymbolFree Subscription

Subscribe to our free newsletter and receive daily email alerts from the finews editorial team with a list of the top featured articles.

Share with us

Do you have any market intelligence to share with finews.asia – email us on info@finews.asia – All communication is completely confidential and strictly anonymous.