Dubai: American retailers are taking on all comers in trying to find moorings in overseas markets, according to CBRE findings in ‘How Active are Retailers
Globally’. Last year, 26 per cent of such brands were from the US, while Italian labels came in second with 14 per cent. The British made up 11 per cent and the French 10 per cent.
“Those US brands which are still not represented internationally are nearing growth saturation in their home market and which means they will need new territories to get into,” said Nick Maclean, regional Managing Director at CBRE.
“In comparison, European markets still offer higher growth possibilities for their home grown brands, which is why there is less intent to reach out than their American counterparts.
“It’s more or less similar sentiments at work with Asian brands — the Asian shopping centres are still the fastest growing and which compels them to explore whatever expansion opportunities are available within than do something outside.”
In terms of specific categories, retailers/brands in the mid-range fashion were more likely to head overseas. The CBRE report notes that 21 per cent belonged to this category last year, and followed by luxury names with 20 per cent. Coffee and restaurant concepts came in third with 16 per cent, which was matched by specialist clothing labels.
“There is still a great deal of expansion into Asia, with particular focus on Tokyo, Singapore and Taipei, whilst the appetite to move into the Middle East shows no signs of abating with focus on Abu Dhabi and Dubai,” according to the report. “With some of the biggest shopping malls on the planet, the environment for expansion in the Middle East remains attractive with well-established franchise partners and templates for how to proceed being in place.”
