04 marzo 2008

"Spain’s growing ability to attract global retailers to its shores is fuelling its rise as a global retail destination and threatening the United Kingdom’s title as the ‘most international retail market’ in the world, according to a new study by CB Richard Ellis.

The report, entitled How Global is the Business of Retail?, maps the global footprint of 250 of the world’s top retailers, exploring the globalisation of the retail industry and scrutinising retailer presence in relation to market sectors, country of origin, regional trends and other influences.

The study ranks the UK as the current global leader in relation to international retailer presence, with 55% of retailers surveyed present. Spain’s position as the second-ranked market, closely trailing the UK, is an unexpected result which gives perspective to the market’s new global significance, with 51% of retailers present. Spain is a relatively new destination for international retailers, the very strong recent performance of the Spanish economy having boosted retail sales and created strong demand for retail space. This strong platform for growth, along with positive market sentiment from both retailers and investors regarding the Spanish market, continues to suggest that a challenge to the UK’s number one position is not unlikely.

France and Germany also performed strongly in the global ranking, achieving third and fourth positions respectively, and emerging markets including the United Arab Emirates, China and Russia all figured in the top 10. The penetration of international retailers in these emerging markets is similar to that of much more mature economies, explained by a number of domestic political, economic and retail market idiosyncrasies. The United States surprisingly registered outside the top 10, at number 11, with 39% of international retailers present in that market. CB Richard Ellis attributes this to the maturity, size and strength of its domestic retailers, which make it a market that only the strongest foreign retailers are able to break into.

The report also analysed which types or categories of retailers have the strongest international penetration, and found that luxury goods dominated international retail expansion, with almost 90% having a presence in more than 10 markets. This was markedly more than grocery, food and drink retailers, with just 60% present in 10 or more markets, and the clothing, footwear and accessories retailers of which 54% were in more than 10 markets. However, as the report illustrates, many of the luxury retailers are particularly well-known for their clothing ranges, such as Hugo Boss or Versace, reflecting the historical tendency for high fashion brands to be offered internationally. Least likely to ‘travel’ were the department stores, with only 5% represented in 10 or more markets.

Speaking about the report, Peter Gold, EMEA Head of Cross Border Retail, CB Richard Ellis, said: "This is the first time that the globalisation of retail has been examined in this way, capturing real data about the expansion of international retailing. It gives retailers unique insight into international opportunities, trends and challenges, and raises questions about why markets behave in particular ways and attract particular retailers.

"There is an under-representation of European retailers in Scandinavia, for instance, suggesting that European retailers may benefit from reconsidering opportunities in this region and potential gaps in the market.

"One of the most exciting things to watch in the global retail landscape is the growth and influence of the BRIC emerging markets (Brazil, Russia, India and China). China and Russia are already strong global performers and represented in the top 10 most international markets in our study. India and Brazil still have some domestic barriers to growth, but are quickly evolving and likely to present huge opportunities to retailers in the near future."

Top 15 Most International Retail Markets
 

Rank	Country	% of International Retailers Present*
1	UK	55%
2	Spain	51%
3	France	49%
4	Germany	47%
5	Italy	45%
6	Switzerland	42%
7	Austria	42%
8	United Arab Emirates	41%
9	China	40%
10	Russia	39%
11	United States	39%
12	Netherlands	38%
13	Singapore	38%
14	Belgium	37%
15	Ireland	35%

* Percentage of retailers surveyed for the How Global is the Business of Retail? report " ( CS della Società)