When it comes to retail expansion, Tokyo is the “World’s Hottest Market,” according to a new study by CBRE Group (Los Angeles). The report found that the Japanese capital attracted 63 new brands last year. In the Americas, Toronto attracted more international brands (25) than any other market.
The study, “How Global is the Business of Retail?” tracked the target markets of new brands in 164 cities in 50 countries. It found that American retailers entered the most new global markets in 2014. U.S. retailers last year accounted for 26 percent of the retail industry’s international expansion, traveling mostly to Asia, 41 percent; followed by European markets, 33 percent; and the Middle East and Africa, 12 percent.
Italian retailers also proved to be somewhat aggressive in their expansion efforts and were responsible for 14 percent of cross-border expansion in the retail industry, followed by U.K.-based retailers, with 11 percent; and French retailers, 10 percent. Markets in Europe accounted for 42 percent of international expansion, followed by Asia, with 39 percent; and the Middle East and Africa, 10 percent. North America was a target for only 3 percent of internationally-expanding retailers.
Mid-range fashion accounted for most of the global expansion (21 percent), followed by luxury brands (20 percent), specialty retail (16 percent) and coffee shops (16 percent).