Retail expansion back on the cards for 2011
Published: 19 November, 2010
The UK remains a leading target for international retailers as they ramp up their expansion plans for 2011, according to new research by CB Richard Ellis, launched yesterday at Mapic, Cannes.
The UK emerged as the fifth most popular market for expansion in the EMEA region in 2011, signalling a return to confidence in the sector as an increasing number of retailers plan to significantly increase their store networks next year.
“Large scale expansion is back on the cards for a lot of retailers,” said Neville Moss, CBRE’s head of retail research (EMEA), at the launch of the report - How Active are Retailers in EMEA? – which examines the attitudes and 2011 expansion plans of 212 leading retailers.
Mid-range fashion and value and denim retailers plan to create the largest increases of any sector in the rate of new openings in 2011, with 28 per cent looking to open more than 30 stores next year compared to 16 per cent in 2010.
The US clothing brand, Forever21, recently revealed plans to launch an assault on the UK market with an aim to open more than 100 stores and other brands such as Aldo, Superdry and Hollister are all also on the expansion trail.
Peter Gold, head of CBRE’s EMEA Cross Border Retail, said: “Retailer sentiment has risen markedly since its low point last year. It is clear that more retailers are now feeling confident enough to accelerate their expansion. Retailer openings have picked up over the past 12 months, with retailers expanding aggressively around Europe.
“However, while some retailers see the current market as a time of opportunity, some are still cautious and will be looking to minimise risk. The preferred expansion option by far is to enter new cities in existing markets.”
Other new CBRE research showed that retailer demand is feeding through into rental growth with demand for prime retail space remaining strong in most locations across the world. London and Edinburgh have seen significant annual rental growth, growing by 20 per cent and 25 per cent respectively compared with the same period in 2009.
