Selasa, 01/09/2009

World Retail Market Not Affected by Crisis

-jktproperty.com
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World Retail Market Not Affected by Crisis

THE CURRENT GLOBAL crisis has caused jitters in the global economy. But, the property market condition in one country is not always the same in other countries, especially concerning their retail sector. Lease prices of major retailers in Europe have continued to rise, giving positive signals against the uncertainty in other sectors.

Amidst the crisis, the buying power of consumers in the retail sector market in Europe, notably in Central and Eastern Europe (CEE), is continuing to grow, and this situation supports the region’s economic stability that is now spreading to the whole continent.

This proves that market growth and market resilience in any crisis can be seen only through the macro economic condition but also from the aspect of consumer behaviors that differ from one location to the other.

People’ strong belief that the European market will rise again came up when the commercial property market in the UK began indicating that the country’s economy had bottomed out of the recession and has shown signs of growth.

Even, at the moment London ranks first among the 10 largest commercial retail property markets, according to the results of a research conducted by CB Richard Ellis. The research was meant to determine the locations that are most attractive to retailers especially world class ones. Large cities in Europe indeed are predominant in the lists of commercial property markets that are produced by CB Richard Ellis.

Seven of the 10 locations are in Europe while the remaining three are New York City, Dubai and Tokyo. London, which is listed as one of the world’s most expensive trading cities in Europe succeeded to beat other favorite shopping locations like Paris, New York and Dubai. Around 60 percent of world class retailers are attracted to London and later Paris (40 percent). New York ranks third (47 percent) while Dubai surprisingly comes fourth (46 percent). Dubai’s position indicates that it should be taken into account in the international retail business.

The results of the research conducted by CB Richard Ellis show several factors that support the Dubai retail market like property development in that country that has caused a significant increase in retail space, the networks of franchise owners that help retailers expand their markets in an effective way. The CB Richard Ellis research not only listed the 10 locations but also other places.

Cities in Asia are quite predominant in the list of 15 international retail cities. They include Tokyo, Singapore, Hong Kong and Beijing. Meanwhile, major retail cities like London and Paris are continuing to attract the majority of international retailers, while second class retail cities like Manchester and Lyon can only attract around 60 percent of international retailers from capital cities. A similar condition is found in America. Cities other than New York can only attract 65-75 percent of its retailers.

The CB Richard Ellis survey also shows that retail cities outside major cities can only attract an average of 58 percent of the latter’s retailers. But, this condition is not found in Germany where for more than three quarters all international retailers in Berlin have also been found in Munich, Hamburg and Cologne.

According to Peter Gold, Head of EMEA Cross Border Retail of CB Richard Ellis, at the moment retailers no longer care about the market condition but stress the importance of finding locations with big numbers of prospective buyers. For them, what is more important is determine the cities for their outlets, rather than the countries where the cities are located.

“Our study emphasizes this micro-level focus, showing that the expansion of an international retailer into one city does not necessarily imply they will expand across other cities in the same country. Europe’s ongoing domination of the most popular retail destinations in the world is certainly a positive impact of the geo-political context of the region. The European Union is one of the great cross-border retail success stories, in that a common currency, legal platform and network of cultural and historic ties make cross-border retailing more attractive and straightforward,” said Gold. (JR)