London is still the world’s most important shopping city: the British capital is the go-to spot for all major brands that want to open a physical store, despite the popularity of eCommerce and the surge of Asian cities.
Good location is more important than ever
Jones Lang LaSalle (JLL) has mentioned the world’s most appealing cities for retailers in its ‘Destination Retail Report 2016’. The real estate agent looked at 240 brands and their presence in 140 cities, totaling 13 % of the world’s population and 33 % of all consumption expenses. “With eCommerce’s surging popularity, demand for the right physical space, in the right location, is stronger than ever”, global retail research director James Brown.
London is still number one: international retailers love the British capital because of its large mature market, which attracts local buyers and tourists alike. Many brands also start their foreign expansion in London, as it is considered a stepping stone to the rest of Europe.
Asia has strong presence in top fifty of shopping cities
Another remarkable point is how the Far East has moved up the list: in the list of the fifty most attractive shopping cities, it occupies eightteen spots, with Hong Kong as its highest entry. With an increasingly large middle class and spending capacity, the region will continue to grow. Its retail real estate is also relatively new, which makes stores all the more appealing.
Shanghai and Beijing are the other most interesting cities in China and are considered to be the ideal testing ground for the rest of Asia, with their very affluent citizens. Tokyo, Singapore, Seoul, Osaka and Bangkok are also very appealing trade cities, if one looks outside of China.
Middle East is making strides
Not only the Far East has performed well, the Middle East is also becoming a more appealing location for retailers. It currently occupies fifteen spots in the top fifty. Dubai (including the Dubai Mall which attracts a lot of tourists), Kuwait, Abu Dhabi and Riyadh are the prime locations in this region. The market is not entirely developed yet, which means there is still a lot of potential. International partners often use a local partner here, reducing their risk, which also makes the move more appealing.
America also has sixteen cities in the top 50, including fifteen in the United States itself. New York, San Francisco, Miami, Chicago and Los Angeles are top of the class, while the United States itself has the most retail space of any nation in the world.
