Asia-Pacific: top priority for cross-border retail expansion

According to the source, 18 of the top 50 most attractive cities for cross-border retail are located within this region. While Asia Pacific dominates the leaderboard, London is the no. 1 retail market, standing at the forefront of international retailing as a global retail powerhouse. London edges out Hong Kong in terms of international luxury brand presence, as it continues to attract new brands thanks to its blend of market size, maturity and high degree of transparency. Many retailers regard London as the entry point to Europe, including recent entrants J.Crew, Arcteryx, Club Monaco, Kit and Ace, and John Varvatos, according to JLLs report.

Findings also reveal that one-third of the top 15 global retail cities are located in the Middle East – Dubai (4), Kuwait City (9), Abu Dhabi (11), Jeddah (12) and Riyadh (12). Also, cities in the US make up 26.4% of the top 50 cities, with only New York (5) in the top 15.

The Middle East`s top cities have large quantities of affordable retail space, supported by franchise structures, which present options for international retailers and reduce their operational risk at entry. Additionally, the domestic retail market in the Middle East is not as mature as other regions, allowing international brands to enter without too much competition from domestic brands. JLLs report found that pent up shopping demand across the region has spurred some of the highest sales volumes for retailers.

Many Asian cities benefit from large amounts of new, fit-for-purpose modern retail space. Hong Kong remains Asia`s leading shopping destination, with top brands from luxury to fast fashion competing for prime locations. Across the region, cities are catching up to modern retail markets in Europe and the US. Shanghai and Beijing are on international retailers` maps as key locales for brand exposure and test markets. Key cities outside of Greater China that are also gaining attention from international retailers include Tokyo, Singapore, Seoul, Osaka and Bangkok.

While the Americas region captures one-quarter of the top 50 cities for attractiveness, 15 out of the 16 cities identified are located in US. The Land of Opportunity has more retail space than any other country, with 12.8 billion square feet, and presents retailers with several options for entry, either in malls, shopping centers, power centers or general retail space. The portal cities of New York, San Francisco, Miami, Chicago and Los Angeles remain robust with global brands, but the 137 remaining key markets are largely untapped by international retailers.

JLLs new report, dubbed Destination Retail 2016, examines the presence of 240 international retail brands across 140 retail cities, giving insights for international retail expansion. The 140 cities make up 36% of the world`s GDP, 13% of the global population and 33% of total consumer spending.