Moscow, St Petersburg and Prague top list of retailer destination.
11 Dec, 2007, London
The results are part of the 2007 International Retailers Survey.
UAE and Russia come top for expansion plans.
On-line retailers are the ‘retailers’ to watch.
Cities in Central and Eastern Europe (CEE) dominate a top-20 ranking of new-destination cities to be targeted by cross-border retailers over the next five years, with Moscow in No 1 position, followed by St Petersburg and Prague.
The only Western European city in the top ten is Amsterdam, which shares 10th position with Kyiv. This year’s risers are the capital cities of the European Union’s newest members, with Sofia and Bucharest both up two places to 6th and 7th respectively.
The ranking is part of the annual 2007 International Retailers’ Survey, commissioned by Real Estate Publishers (REP) in association with the International Council of Shopping Centers (ICSC), and produced by global real estate consultant Cushman & Wakefield.
The survey interviews property executives responsible for international expansion at 250 retail companies from 23 countries across Europe. The survey focuses on retailers’ views on expanding across border, their expansion plans, and the main issues affecting these plans. For the first time, retailers were also asked about sustainability (see 2007 Sustainability Retailers’ Survey and separate press release – European retailers to “lose market share” if they fail to address sustainability).
Marinus Dijkman, President/CEO of REP says: “Central and Eastern Europe, in particular Russia, is still clearly seen as the land of opportunities for many cross-border retailers. At the same time, we are also seeing retailers with their origins in CEE expanding internationally.”
On a country basis, Russia and the United Arab Emirates are in joint top position, with 9 per cent of retailers planning to expand in these countries over the next five years. Then comes Slovakia (6 per cent of retailers), followed by Bulgaria, Slovenia and Hungary (5 per cent each).
When looking at the current international representation of the retailers interviewed,
26 per cent have units in France and Spain, at the top of the list, 25 per cent in Belgium, German and the UK, 20 per cent in Austria and Italy, 18 per cent in the Netherlands and Switzerland, and 17 per cent in the Czech Republic, Portugal and Russia.
TOP 20 CITES TARGETED BY INTERNATIONAL RETAILERS OVER THE NEXT FIVE YEARS
Source: 2007 International Retailers Survey.
Other key findings of the 2007 International Retailers Survey include:
Expansion plans …
Current markets …
Multi-channel retailing …
Retailers to watch
Retailers were also asked their main issues of concern. Top comes performance of the economy, followed by property occupancy costs, multi-channel retailing, workforce availability, consumers’ ethical concerns, venture capitalists moving in, and, lastly, sustainability/becoming neutral.
Regarding the issue of sustainability, Dr Yvonne Court, Head of European Retail Research & Consultancy at Cushman & Wakefield, says: “The low level of awareness of sustainability issues is alarming given that this is a key area where retailers could gain a competitive advantage, through lower energy costs in particular.”
On the way ahead, Ermine Amies, Managing Director of ICSC Europe, says: “The coming year will remain challenging for retailers, in particular with the rise of on-line operators, but the sector has always been highly competitive, with innovation and cost controls being the fundamentals of success.”