by Brianna Crandall — April 29, 2016 — Many say success is a journey, not a destination, but according to global commercial real estate services firm JLL’s latest report, “the destination is everything.” JLL’s Destination Retail report, which looks at the top cities worldwide for retailing, shows 50 major global cities have risen to the top of the list for mainstream, premium and luxury retailers’ expansions.
While the list is dominated by cities in the Asia-Pacific (APAC) region, those in the Middle East are coming on strong, propelled by an ever-increasing array of international retailers, according to the report. In a battle between historic, established markets versus modern newcomers, JLL indexed the global cross-border retailer activity and attractiveness of 50 meccas and found:
- London stands at the forefront of international retailing as a global retail powerhouse, and the #1 retail market.
- One-third of the top 15 global retail cities are located in the Middle East (Dubai #4, Kuwait City #9, Abu Dhabi #11, and Jeddah and Riyadh tied for #12).
- Asia-Pacific outranks all regions, with 18 cities making the cut driven by sheer market size.
- Cities in the United States make up just over one-quarter (26.4 percent) of the Top 50 cities, with only one city (New York #5) in the top 15.
James Brown, director of Global Retail Research for JLL, pointed out:
Structural change is sweeping the retail industry as technology and e-commerce platforms become more sophisticated; however, demand for the right physical space, in the right location, is stronger than ever. Borders are becoming less of an issue for retailers pursuing opportunities overseas, and we’re seeing the global retail landscape shifting fast to accommodate the change.
JLL’s report examines the presence of 240 international retail brands and 140 international cities, including the drivers of their growth, opportunity and barriers, and also ranks and assesses the vitality and attractiveness of cities, giving insights for international retail expansion. The 140 cities make up 36 percent of the world’s GDP, 13 percent of the global population and 33 percent of total consumer spending.
The acceleration of international brand expansion across the world’s best and most attractive cities in the next decade is expected to continue, driven by fast-growing middle classes, new powerhouse economies, and rising tourism. Retailers who succeed in acquiring the right space and at the right time are expected to benefit from successful and profitable growth.
To learn more, register to receive the full Destination Retail 2016 report on the JLL Web site.
