Hong Kong is top market for new retail entrants

LAS VEGAS, Nevada, US – Leading global property adviser CBRE ranks Hong Kong as the hottest target for new retail entrants. In report, How Global is the Business of Retail? CBRE maps the global footprint of 320 of the world’s top retailers across more than 200 cities, tracking cross-border retailer movements. The report found that retailers expanded into a wide range of markets in 2012, with 81% of cities seeing at least one new retailer enter the market.

U.S. retailers are by far the most aggressive when expanding store networks globally. Traditionally they focused on Asian and Western European markets, but several have entered the Middle East (18% of all new entrants were U.S. retailers last year), Central & Eastern Europe (17%), and Latin America (10%). Meanwhile European companies, particularly those from the UK, Italy and France, have concentrated within the region, and have noted targeting Asia.

Hong Kong was by far the most sought after city with 51 new retailer entries from all sectors – not just high-end fashion brands. The new entrants were principally from Europe, but also from the U.S., Japan and Korea.

Peter Gold, Head of Cross Border EMEA Retail, CBRE commented: “Hong Kong provides an opportunity for retailers to capitalise on the emerging middle class population and tourists from mainland China. Hong Kong is often used as a launch pad for brands entering the region, although less so than previously, as more retailers enter Chinese cities directly. While luxury brands led the way in 2012, retailers from across the spectrum opened their first store in the city last year, including Pierre Cardin, Forever 21 and Cos.”

Mature markets dominated retailers’ expansion plans last year although six emerging markets made the top 20. Kiev was in second place with 39 new entrants, with Sao Paulo (25 new entrants), Iasi (19), Muscat (17) and Ho Chi Minh City (15) also important targets. This is the second year that Kiev has been ranked in the top 3 globally. A combination of strong growth in real incomes and a serious under supply of quality retail space in the city is driving major shopping centre development, which in turn is attracting a wide ranAir Jordan XXXI 31 Shoes