Astonishingly 70 per cent of the world’s top 240 international retailers like Adidas and Zara among others have European roots. Yet they have built a comprehensive network of stores around the world to match their global fan base, a report of JLL Destination Retail reveals.
Jonathan Bayfield, senior retail research analyst, JLL says that European retailers continue to have a strong presence in the global retail landscape and as more of these brands look internationally to drive sales and diversify, retail expansion is here to stay. In developing markets it’s the fast growing middle classes from Beijing and Jakarta in Asia Pacific, to Dubai and Abu Dhabi in the Middle East, and a number of Latin American capitals that are boosting the growth for European retailers. On the other hand, mature retail markets such as London, Paris, New York and Hong Kong remain prime shopping destinations for increasing number of visitors.
However, with political and economic uncertainties creating waves at home, European retailers need to have the right international growth strategy in place. Adds Bayfield that the uncertain economic outlook and the growth of e-commerce in Western Europe is leading to a growing need for brands to continue to expand internationally in the right locations to achieve balanced sales growth.
