Destination Europe 2013 - Jones Lang LaSalle

2.
Retailer Presence
London tops the international
retailer league
London is the most attractive location for international retailers, based on the presence
of the top 250 international retailers in the key European retail markets. The UK’s capital
is differentiated by its retail market size and maturity, as well as the high degree of market
transparency, which together have resulted in a long history of success for international
retailers. This year we have seen a number of new brands coming to London, from Rag
and Bone and Victoria’s Secret from the US, to Bosideng from China. Major European
cities are first ports of call for international retailers, and London, which is a particularly
retail friendly market, leads for many as the springboard to Europe.
Other European cities successfully attracting international retailers include the core
established retail markets of Paris, Milan, Madrid, Rome and Munich. A pick-up in
retailer expansion has also been observed recently in other regional cities in Germany
and the Benelux countries. After entering core major markets, retailers are selectively
expanding into regional cities, then into growth markets. Borders are becoming less of a
barrier, and retailers are capitalising on new growth opportunities.
We have also observed the burgeoning success of the emerging growth markets of
Moscow, St Petersburg, Istanbul, Prague, Warsaw and Kiev. With a patchy and subdued
growth outlook for some Western and Southern European markets, Eastern Europe
provides some attractive expansion opportunities for retailers with established and
successful retail businesses.
Further down the rankings, there are still plenty of strong retail markets across Europe,
in particular some of the larger UK regional cities and the Scandinavian markets, which
despite market opportunity remain relatively untapped from an international retailer
perspective.
The trend towards increased penetration of international brands across Europe will
accelerate over the coming years, as expansion strategies for many retailers focus
on top tier cities. Retailers with a strong and translatable proposition should explore
international expansion, whilst appreciating and mitigating the risks. For now, however,
London remains number one, Paris is in second place, but Moscow in particular, is
catching up fast.
© Jason Hawkes Destination Europe 2013 | 7 |