Scotland retains its place as a target for international retailers
Published by Anne Marie Hughes on Sat 09 Jun 12 @ 22:16
Within a field of more than 200 cities across the globe, Glasgow and Edinburgh hold their positions as targeted markets for international retailers, according to the 2012 edition of How Global is the Business of Retail? by leading global property adviser CBRE.
CBRE's annual survey - now in its fifth year - mapped the global footprint of 326 of the world's top retailers across more than 200 cities to identify trends in global retail expansion at national and local levels. The report found that retailers expanded into a wide range of markets in 2011, with 74% of the countries in the survey seeing at least one new retailer enter the market last year. The overall global footprint of retailers grew 2.1%, similar to the previous year, demonstrating that retailers continue to grow their cross-border businesses in spite of a challenging consumer environment.
In Scotland, attracting 25.9% of all international retail brands surveyed, Glasgow retains its title as a prime Scottish destination ranked at 60th in the global field. Almost half (47.4%) of the international retailers in the city come under the 'value and denim' category, followed closely by supermarkets at 33.3%. Edinburgh was ranked at joint 90th, along with Bristol, Dalian (China), and Cairo (Egypt). The report notes how coffee and restaurant international retailers are the predominant category at 21.9% for Edinburgh consumers.
Kevin Sims, retail director, CBRE, commented: "Despite the general economic conditions, retailers are still looking to acquire new stores in Scotland. As the report shows, Glasgow remains ever popular, evidence of this includes recent additions by such international brands as Nike and Hollister. The demand for Edinburgh from exciting new brands also remains strong with new occupiers in the last year including Anthropologie and more recently The Kooples, Sweaty Betty and Hollister.
"The outlook for the retail sector in Scotland remains positive although generally demand is focused either at the top end of the market in the larger cities and shopping centres or at the discount sector of the market. Mid-market towns in between are under pressure which is highlighted by falling rents and an increase in availability."
When looking at the most targeted countries by global retailers, the UK holds onto first position in the rankings closely followed by the United Arab Emirates (53.1%) and the United States (50.3%). Spain is in fourth position (47.5%) closely followed by China (47.2%), with France and Germany (46.9%) joint sixth in the rankings. Russia (44.5%), Italy (43%) and Saudi Arabia (41.1%) make up the remainder of the top 10.
Kevin Sims continued: "US fashion retailers are expanding beyond their own borders with renewed vigour and are increasingly focusing on Europe - building on the highly successful entries of several major US brands in recent years. Whilst London is usually the first stop for a lot of these brands it is hoped they will continue to make the foray north of the border further strengthening the Scottish retail offer."