1. UNITED KINGDOM
The United Kingdom is ranked as the most preferred by international retailers. The UK is home to the highest percentage of the world's top international retailers, with 55 per cent of 250 brands surveyed present, according to 'How Global is the Business of Retail?', a new report from CB Richard Ellis.
India ranks 44th in the list of most preferred retail destination in the world due to factors like FDI restrictions and lower average per-capita income, a report has said. While retailers from the United States are represented around the world, in markets as diverse as South Africa, Scandinavia, Ireland and Israel, the UK attracts more American retailers than any other country.
London is often a springboard destination for American retailers, allowing them to be present in an iconic fashion hub and explore opportunities for expansion into Europe at the same time.
2. SPAIN
Challenging the UK's dominant position is Spain with the second-highest presence of international retailers. Spain's position as the second-ranked market a gives new insights into the emerging global significance of its market, says the CBRE report.
It houses 51 per cent of retailers surveyed. Spain's ability to attract global retailers is promoting itself as global retail destination and threatening the UK's title as the 'most international retail market' in the world.
Several countries which have not historically proven attractive to international retailers have enjoyed increased interest over the last few years. Despite its second place global ranking of international retail presence, Spain is a relatively new destination for international retailers.
Strong economic performance has boosted retail sales, generating strong demand for space in high street and shopping centre locations from both domestic and international brands.
3. FRANCE
France has the next highest presence of American retailers, attracting 48 per cent of retailers. US retailers have a relatively low penetration outside the mature Western European markets, suggesting that Europe still holds good opportunities.
According to the report, of the 52 North American retailers surveyed, 75 per cent are currently present in the UK.
Establishing a presence in the five largest global economies (the US, Japan, Germany, France and China) would give a retailer exposure to 57% of the world's GDP. Operating in the 10 largest economies covers almost three quarters of the total global economy.
American retailers are on average present in only 14 markets but, by virtue of being in the United States, they access over half of global GDP. European retailers are typically present in a larger number of markets, but access less than 40% of global GDP because almost half are not present in the US.
4. GERMANY
Germany is the 4th most preferred retail destination. The particular geo-political context of Europe has a significant influence on the preference of retailers.
There are now 27 countries within the newly enlarged European Union, 15 of which share a common currency (the Euro, introduced in 2002). Within the EU there are effectively no barriers to trade or the movement of goods, thereby promoting cross-border trade and facilitating retailer expansion across the continent.
With a large number of countries in close proximity, the emergence of a 'single European market' has encouraged many European retailers to move into new countries.
5. ITALY
Italy ranks 5th among the most preferred retail destinations. Italian retailers were found to be the most international, on average having a presence in 25 countries outside Italy.
This was notably ahead of the next highest country, Spain, whose international retailers were operating in an average of 19 other countries. To some extent, however, this also reflects the historic dominance of luxury goods and clothing by European 'haute couture' fashion houses.
Luxury retailers were the most 'international' of all those surveyed, nearly 90 per cent had a presence in more than 10 markets, way ahead of the grocery, food and drink retailers, of which only 60 per cent had a presence in more than 10 markets, and clothing, footwear and accessories retailers of which 54 per cent were in more than 10 markets.
6. SWITZERLAND
Switzerland, one of the world's most attractive tourist destinations, is also a hot favourite among international retailers. It ranks 6th in the CBRE list.
Interestingly, while European countries are attracting more retailers, the United States is ranked at 11, with the presence of only 39% of international retailers.
According to the report, the maturity, size and strength of the domestic retailers in the US make it a market that only the strongest foreign retailers are able to break into.
7. AUSTRIA
Austria is the 7th most preferred retail destination. This country has a presence of 42 per cent international retailers.
Austria is one of the 10 richest countries in the world in terms of GDP per capita. The country has a highly developed industry sector and international tourism is also an important part of the economy. Being a member state of the European Union, it attracts more foreign investors and global retailers.
8. UNITED ARAB EMIRATES
The United Arab Emirates is a shopper's paradise and the 8th most preferred destination for international retailers. The UAE has a presence of 41% international retailers.
Retailing in the UAE has changed significantly in recent years, with the emergence of some of the most high profile retail developments anywhere in the world.
One of the world's largest shopping malls is set to open this year in Dubai. The Dubai Mall spread across an area of 12 million square feet will house 1,200 stores. This will be much bigger than the largest retail centre in Dubai, Mall of the Emirates.
9. CHINA
Emerging markets are becoming very vital for many retailers. The booming Chinese economy ranks 9th, attracting 40 per cent of international retailers.
While the average consumer spending per capita remains low, in emerging markets, the level of international retailer presence in these markets is similar to that of much more developed economies.
The reason is politically and economically, both China and Russia have seen a significant relaxation of restrictions on investment as they have started to move towards free-market capitalism; China's commitment to the World Trade Organisation at the end of 2001 saw a huge influx of retailers into the country.
The sheer size of their markets and strong growth in consumer spending per head (over 10% per annum in China and 7.5% per annum in Russia) also makes them attractive, and their potential for further growth is clearly significant.
10. RUSSIA
Russia remains a hotspot for top global brands. With 39 per cent of the international retailers preferring Russia, it is ranked at the 10th position.
Within the primary cities (such as Beijing, Shanghai and Guangzhou in China, and Moscow in Russia), there is a significant concentration of wealth and it is around these cities that much of the international retail activity is still centered. This strength of expenditure, and thus retailer demand (particularly from luxury brands), has seen Moscow emerge as the most expensive retail destination in Europe in terms of prime rental values.
Russia is followed by US, Netherlands (38%), Singapore (38%), Belgium (37%) and Ireland (35%) as the most preferred retail hotspots.
Meanwhile, the rapid growth of emerging markets, emerging middle-classes in India, Russia and China, newer and easier marketing strategies make it much easier to develop a global retail brand now. There's no doubt that this is an exciting time for retailers and consumers as well.
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