Germany is the most popular global market for retailers in 2014
March 18, 2014
Germany is the most sought after retail market in the world with 40% of global retailers planning to open a store there in 2014, while US retailers dominate large-scale expansion plans with almost half aiming to open 40 stores or more, according to the latest research from global property advisor CBRE.
Germany is by far the most attractive global retail market ahead of France, UK, Austria and China. Global retailers are attracted to Germany as it offers the opportunity to target 20 large cities in one market. More than 40% of retailers globally plan to open a store in Germany in 2014 and this figure increases to 70% when taking into account only European retailers. Germany is also the second most important target for American retailers.
The amount of retailers with large-scale expansion plans has increased dramatically in 2014 revealing a renewed confidence in the global retail market. More than one third (35%) of retailers plan to expand their store portfolio by 40 stores or more over the next 12 months. Of those retailers looking to open 40 stores or more, Mid-Range fashion and Value fashion are the most active sectors accounting for one third of the total each.
“An upturn in consumer confidence and renewed vigour in the global retailer community has put large scale expansion firmly back on the agenda. While the pace of international growth has slowed in recent years, retailers are making clear their intention to materially invest in their store networks throughout 2014. Their preference for a wide range of markets highlights the continued importance of cross-border growth. Germany is on top as the market of greatest interest to retailers this year. The countries continued appeal reflects the strength and scale of the economy and the successes of several big brand new entrants”, Peter Gold, Head of Cross-Border Retail, CBRE, commented.
American retailers have the most extensive large-scale expansion plans with almost half (47%) of retailers surveyed looking to open more than 40 stores in 2014. The US is the largest retail market in the region and unsurprisingly the most important target market for retailers based in the Americas - almost half (43%) are aiming to expand there in 2014. However, due to the maturity and competition of domestic markets, many North American retailers are seeking to grow their global businesses, providing the opportunity to expand on a large scale. US retailers are targeting European markets in particular with 19% looking to open stores in Germany this year and 14% in the UK, Canada, France and Austria.
“Although the country’s perception has somewhat improved compared to last year, Hungary is still not in the same league with Poland or Czech Republic, as far as the retailers’ expansion plans are concerned. Hungary was ranked 38 out of the 55 countries in the survey – putting us to the same line with neighbouring Slovakia, Romania or Croatia. Looking ahead, however, we are optimistic. Retail sales finally started to grow and this won’t remain unnoted by retailers. International brands will realize the underestimated potential of the Hungarian market and they will start to expand more dynamically in Hungary as well”, Anita Csörgő Head of Retail at CBRE Budapest added.
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