Luxury shops lead retail expansion
Published: 20 July, 2010
Luxury goods retailers have been found to be the most expansive in the whole retail sector, making up 23 per cent of new store openings during the past year, according to CB Richard Ellis.
The CBRE’s annual survey mapped the global footprint of 294 of the world’s top retailers across 69 countries and found that despite the economic downturn, luxury retailers have continued to globalise.
London is the second most popular global destination for luxury, attracting 87 per cent, after Hong Kong which attracts 91 per cent.
Luxury retailers operate in over 25 countries and 50 cities worldwide, and are thriving in China where increasing disposable income has led to a strong demand for luxury western brands.
Joel Stephen of Retail Services China, CBRE, said: “A common trait of emerging market consumers is that they are often seeking ways to display their new-found wealth. This is clearly true of the luxury shopper in China, who is increasingly looking for and excited by new brands entering the market.”
In total, Asian cities accounted for eight of the top 15 luxury cities, with Taipei, Beijng, Shanghai and Singapore all featuring in the top 10.
Peter Gold, head of EMEA cross-border retail, CBRE, commented: “For some retailers, difficult trading conditions in their domestic markets, saturation in their home countries, and the search for margin growth by operating in lower-cost locations, may all be factors influencing retailers’ decisions to move into emerging markets.”
