Top 10 Global Retail Markets

Top 10 global retail markets April 03, 2008

The story of globalisation of retail industry is interesting. A decade back, it was hard to imagine that international retailers would set up shop in your neighbourhood. But global retail giants are now spreading their wings across the globe to cash in on new opportunties. Though India boasts of an emerging retail market with top international retailers like Wal-Mart, Carrefour keen to establish their presence, India does not figure in the top ten most preferred global retail markets. Out of the BRIC (Brazil, Russia, India and China) countries, China and Russia are in the top 10 list. 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. So which are the other countries that make up the top ten most preferred retail hotspots? 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. . 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. 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.