Retail Destination Europe 2013
Upcoming SlideShare
Loading in...5
×
 

Retail Destination Europe 2013

on

  • 2,208 views

Informe de Jones Lang Lasalle donde analiza las 250 marcas más renombradas en retail y su presencia en las principales ciudades europeas. Londres se alza como la ciudad más atractiva entre los 57 ...

Informe de Jones Lang Lasalle donde analiza las 250 marcas más renombradas en retail y su presencia en las principales ciudades europeas. Londres se alza como la ciudad más atractiva entre los 57 principales mercados de distribución. París, Moscú, Milán y Madrid, mercados de distribución maduros, copan los restantes puestos de la clasificación de las cinco ciudades más atractivas.

Sin embargo, en un contexto de crecimiento económico débil en el oeste y sur de Europa, estas compañías también están comenzando a mirar simultáneamente hacia el este. Los mercados emergentes ofrecen oportunidades de expansión atractivas. Generalmente, los niveles de los alquileres son inferiores a los de los mercados más maduros y las perspectivas de ventas minoristas son claramente superiores. Por lo tanto, en este contexto San Petersburgo (8ª), Praga (9ª), Estambul (11ª), Varsovia (19ª) y Kiev (23ª) presentan una destacada evolución en nuestro índice. El este y centro de Europa cuentan con más mercados entre los 30 primeros del sector de la distribución que el sur de Europa. Para las compañías minoristas maduras establecidas en mercados europeos centrales, Europa del Este ofrece oportunidades tanto de crecimiento como de diversificación.

Rusia (con el tercer puesto de Moscú y el octavo de San Petersburgo), España (gracias al quinto puesto alcanzado por Madrid y al décimo de Barcelona) e Italia (con Milán en el cuarto puesto y Roma en el sexto) son los únicos países europeos que cuentan con dos ciudades entre los diez primeros puestos del índice, destacando por encima de la media.

Por su parte, Alemania cuenta con cinco ciudades entre las veinte primeras (con Múnich en el séptimo puesto, Berlín en el duodécimo, Hamburgo en el decimotercero, Fráncfort en el decimosexto y Düsseldorf en el decimonoveno).

Compañías minoristas en expansión: Zara es la única minorista que abarca el 100 % de los principales mercados europeos incluidos en el informe y, por lo tanto, se sitúa a la cabeza de la clasificación en cuanto a cobertura. Le sigue H&M con un 96 %. The Body Shop, Benetton, Mango, Lush, Tommy Hilfiger, Timberland y Foot Locker son el resto de marcas que superan una cuota del 80 %. Los veinte primeros puestos de la clasificación están copados por las minoristas dominantes, que representan doce de las veinte primeras distribuidoras según su cobertura total.

Existen seis minoristas de alta gama entre las veinte primeras, siendo las firmas estadounidenses Tommy Hilfiger y Timberland las mejor clasificadas (ambas en el séptimo puesto) con más de un 80 % de cobertura en los principales mercados de Europa.

Italia es el primer país exportador de marcas de comercio minorista, con un 17 % de la presencia internacional. Estados Unidos se sitúa en segundo lugar, con una cuota del 16 % de la presencia internacional, mientras que el Reino Unido ocupa el tercer puesto, con un 13 %. Sin embargo, se prevé que Estados Unidos supere a Italia en 2013.

Statistics

Views

Total Views
2,208
Views on SlideShare
2,206
Embed Views
2

Actions

Likes
1
Downloads
32
Comments
0

2 Embeds 2

https://twitter.com 1
http://ikusmer.businessandmedia.net 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Retail Destination Europe 2013 Retail Destination Europe 2013 Document Transcript

  • Destination Europe 2013The 250 most renowned retailer brands and their presence across the key European cities
  • ForewordOur 2009 report, Cross Border Retailing in Europe, explored the internationalexpansion of retailers into country markets. This report examines, for the firsttime in detail, the expansion and presence of international retailers in the key,leading European retail cities.Using our unrivalled knowledge and insight into retail markets, in conjunctionwith our network of local offices, we have analysed the presence of the 250leading international retailers across Europe. Our research covers 55 keyEuropean markets, as identified within our 2011 Retail City Profiles, and twonew retail markets in Eastern Europe (Belgrade and Bratislava).International retailer ‘road mapping’ is becoming increasingly focussed oncities, as cross border barriers fall and as retailers chase diversification andgrowth. Whilst retail is becoming increasingly international, at the same time,retailers are under growing pressure to improve profitability and margins,which often means rationalising portfolios and sifting out non-performingstores. Expansion remains firmly on the agenda however. Factoring in thecontinuing challenging economic conditions for retailers across Europe(with little sign of the headwinds abating), and the structural changes to theindustry resulting from the rise of multi-channel retailing, it is clear that anyexpansion needs to be careful, considered, and selective.The relative attractiveness of cities to international retailers is based on acombination of numerous complex factors; market size, maturity of market,resilience and growth prospects, adjacencies and market familiarity,competition, real estate transparency and risk. This puts a premium on expertadvice from professionals that live and breathe retail, and have access to thescale and breadth of data to enable them to provide accurate, holistic adviceacross Europe and beyond. Jones Lang LaSalle’s pan-European Retail teamnow consists of 1,000 dedicated retail staff, across 76 corporate offices in31 countries. The goal of each is to provide a truly integrated service acrossthe EMEA region, creating a competitive advantage for our clients, applieddirectly to their individual real estate decision-making needs, through the useof accurate data, market knowledge and forward-focused thinking.We hope this report proves to be useful and insightful, be you retailer,investor, developer or landlord. Whilst retail undoubtedly faces challenges,clear new opportunities are still emerging.James Dolphin James BrownHead of EMEA Head of EMEA RetailRetail Agency Consulting and Research© Westfield Stratford City
  • 1234567891011121314=14=16=16=1819=19=19=2223=23=2526=26=2829303132=32=34353637=37=37=404142434445=45=45=4849=49=51525354555657• London has the highest presence of international retailers across Europe, followed by Paris, Moscow, Milan and Madrid.• Italy, driven by luxury, is the largest exporter of retail fascias across the key retail cities in Europe, although the US is catching up fast.• Zara, H&M and Mango have the greatest retailer coverage across Europe; Guess and Calzedonia are amongst the most expansive retailers.• Paris commands the highest rents for international retailers, followed by Zurich and London; London tops the luxury rental table, followed by Paris and Moscow.• London just edges out Paris at the top of the luxury retailer index, followed by the powerhouse Moscow, and Milan.LondonParisMoscowMilanMadridRomeMunichSt PetersburgPragueBarcelonaIstanbulBerlinHamburgViennaAmsterdamFrankfurtAthensAntwerpWarsawLisbonDüsseldorfBrusselsZurichKievStockholmDublinCologneValenciaBudapestBucharestZagrebLyonCopenhagenManchesterBilbaoMarseilleTurinSevilleGlasgowStuttgartBordeauxLilleLiverpoolBelgradeOsloBirminghamAnkaraBratislavaLuxembourgLeedsHelsinkiCardiffBelfastGothenburgNottinghamEdinburghMalmõ0 50 100 150 200 250 IndexJones Lang LaSalle Cross Border Retailer Index 2012Source: Jones Lang LaSalleCity Rank | 4 | Jones Lang LaSalleRank City Index Mainstream Premium Luxury LondonParisMoscowMilanMadridRomeMunichSt PetersburgPragueBarcelona235217196174168151146142140138123456789101.Five Fast FactsAverage(Average representation = 100)
  • London is the most attractive location for international retailers, based on the presenceof the top 250 international retailers in the key European retail markets. The UK’s capitalis differentiated by its retail market size and maturity, as well as the high degree of markettransparency, which together have resulted in a long history of success for internationalretailers. This year we have seen a number of new brands coming to London, from Ragand Bone and Victoria’s Secret from the US, to Bosideng from China. Major Europeancities are first ports of call for international retailers, and London, which is a particularlyretail friendly market, leads for many as the springboard to Europe.Other European cities successfully attracting international retailers include the coreestablished retail markets of Paris, Milan, Madrid, Rome and Munich. A pick-up inretailer expansion has also been observed recently in other regional cities in Germanyand the Benelux countries. After entering core major markets, retailers are selectivelyexpanding into regional cities, then into growth markets. Borders are becoming less of abarrier, and retailers are capitalising on new growth opportunities.We have also observed the burgeoning success of the emerging growth markets ofMoscow, St Petersburg, Istanbul, Prague, Warsaw and Kiev. With a patchy and subduedgrowth outlook for some Western and Southern European markets, Eastern Europeprovides some attractive expansion opportunities for retailers with established andsuccessful retail businesses.Further down the rankings, there are still plenty of strong retail markets across Europe,in particular some of the larger UK regional cities and the Scandinavian markets, whichdespite market opportunity remain relatively untapped from an international retailerperspective.The trend towards increased penetration of international brands across Europe willaccelerate over the coming years, as expansion strategies for many retailers focuson top tier cities. Retailers with a strong and translatable proposition should exploreinternational expansion, whilst appreciating and mitigating the risks. For now, however,London remains number one, Paris is in second place, but Moscow in particular, iscatching up fast.London tops the internationalretailer league© Jason Hawkes Destination Europe 2013 | 7 |2.Retailer Presence
  • Core Retail MarketsThe mature, established retail markets are generally the first port of call for retailersseeking international expansion. The map opposite shows the core retail markets(together with the growth markets, discussed later) across Western Europe, with thegreatest international retailer appeal.The number in each circle represents the cross border retailer index ranking for eachcity, and the arrow represents current occupier demand. As we can see, demand forthe right space in the right place remains resilient to cyclical headwinds.The following pages contain a brief description of each of the core retail markets ofLondon, Paris, Milan, Madrid, Rome and Munich.Europe’s Core and Growth Retail MarketsSource: Jones Lang LaSalle(Circle size is proportional to Cross Border Retailer Index)London 1Paris 2Madrid 5Rome 6Milan 43 Moscow8 St. Petersburg11 Istanbul19= Warsaw9 PragueMunich 7Marketcoregrowth| 8 | Jones Lang LaSalle Destination Europe 2013 | 9 |23= KievDemandstrongsteadyflat
  • London ranks as the most attractive location for international retailers in Europe. Itattracts international brands for a number of reasons, including: size, maturity andtransparency of the retail market, in addition to the track record of retailers who havesuccessfully opened here. The four main shopping areas, Oxford Street, RegentStreet, Bond Street and Covent Garden, collectively form the largest concentrationof retail in Europe. The opening of the two Westfield shopping centres has also beenthe catalyst for a number of new entrants into the London market, which continuesto dominate the UK retail market, driven in part by tourist spend. London is a retailfriendly market and will continue to act as an entry point to Europe for internationalbrands. This year we have seen a number of new brands coming to London, from Ragand Bone and Victoria’s Secret from the US, to Bosideng from China.Paris is the second most attractive location for international retailers in Europe. Parisis one of the world’s leading tourist destinations and, along with London, one of thestrongest global retail locations. It continues to attract the biggest international andnational brands that inevitably look to the city to open flagship stores, in particular thepremiumandluxurybrands.Bothshoppingcentresandhighstreetsareattractivetothecity shoppers, with centrally-located Parisians preferring areas such as the Champs-Elysées, Opéra and Boulevard Haussmann, while those living on the periphery tendto migrate to suburban shopping centres Rosny 2 or Velizy 2. The Champs-Élysées,the most expensive retail location in France, has recently welcomed such new tenantsas Abercrombie & Fitch, Marks & Spencer, and Banana Republic. Other recent newentrants include Calzedonia, Forever 21, Aldo and Intimissimi.LondonRANK 1| 10 | Jones Lang LaSalle Destination Europe 2013 | 11 |ParisRANK 2© Westfield Stratford City
  • Munich ranks as the seventh most attractivelocation for international retailers in Europe.The Bavarian state capital is the top retaillocation in Germany, and retailers are queuingup for units in good positions. Retail spendper capita in Munich is among the highest inEurope, and a strong tourist market also helpsto buoy the local economy. Kaufingerstrasse,Neuhauser Strasse and the area aroundMarienplatzaretheprimehighstreetlocations,with the best performing centrally-locatedscheme being Fünf Höfe. Maximilianstrasseis the home to most luxury retailers in the city.Recent international retailer market entrantsinclude Tory Burch and Woolrich.Rome is the sixth most attractive location for internationalretailers in Europe. The Italian capital attracts millions of touristsevery year, and the retail market has been dynamic in recentyears. Several large out-of-town shopping centres have openedrecently, but the high street has maintained its pre-eminence forboth local and international shoppers. The areas around Piazzadi Spagna and Piazza del Popolo in the old town are traditionallythe most sought after. Via Condotti and Via del Babuino are alsoconsidered prime locations. In terms of shopping centres, Portadi Roma (North Rome) and Roma Est (East) remain the bestperforming schemes and each feature some important flagshipstores. Recent international retailer market entrants includeSuperdry and Deichmann.RomeRANK 6| 12 | Jones Lang LaSalle Destination Europe 2013 | 13 |MunichRANK 7Milan is the fourth most attractive location for international retailers in Europe, and is the industrial,commercial and financial capital of Italy, with an economy dominated by the service sector. Milanis also one of the world’s most famous fashion centres, and is a particularly strong premiumand luxury retailer market. The city centre boasts a large retail floor space, although there areno shopping centres in the central areas of the city. The city centre comprises two distinct butvery affluent shopping areas; the first, with a very upmarket emphasis, is located around ViaMontenapoleone, the second is the more mainstream area around the Piazza del Duomo,including Vittorio Emanuele II. Recent entrants to the market include Cos, Agent Provocateurand Just Cavalli.Madrid ranks as the fifth most attractive locationfor international retailers in Europe. Being thecapital and largest city in Spain, Madrid drawsupon a large consumer base, which is amongthe most affluent in the country. It is also atransport hub, and as such a magnet for touristand business travellers. The Madrid retail marketappeals to a wide audience and many of thetop fashion brands have their flagship storeshere. Preciados is the prime high street, and themost famous retail location in Spain. The maincity centre shopping centres are La Vaguadaand Parquesur. The stretch of Ortega y Gassetbetween Serrano and Velazquez Street is theprime area for luxury brands. Recent internationalretailer market entrants include Tiger of Sweden,Hollister, Apple and Agent Provocateur.MilanRANK 4MadridRANK 5
  • Power Retail Growth MarketsWith current headwinds across most European markets, opportunities for expansioninto territories with stronger growth prospects are becoming increasingly attractive.Once established in multiple markets, retailers can benefit from reduced risk associatedwith being reliant on one or fewer geographies. In some instances, expansion is aboutreducing the risk of over-reliance on a dominant domestic market, for others it is aboutgrowth.Whilst the Far East is clearly a key growth market, attractive opportunities for internationalexpansion exist closer to home, in Central and Eastern Europe in particular. Centraland Eastern Europe’s growing importance as a global retail market is demonstrated bythe fact that it now has more cities in the top 30 retail locations than Southern Europe.Current hotspot retail markets in Central and Eastern Europe are the growth marketsof Russia (Moscow and St Petersburg) and Turkey (Istanbul), in addition to the capitalcities of the Central European powerhouse economies (Prague and Warsaw) andthe emerging retail market in Kiev. These markets, as shown opposite, are alreadysuccessfully attracting significant numbers of international retailers, either throughfranchise or company-owned stores. They still have scope for further expansion,however, due to the market size, and/or positive retail sales outlook.The size of bubble in the graph opposite (and throughout the report) represents thesize of the country retail market. As such, it provides an indication of the wider marketopportunity presented by entry into each individual country market.Key: Country Level Retail Sales (2011)Cross Border Retailer Index Rank vs. Retail Sales Growth ForecastSource: Jones Lang LaSalle, Oxford Economics (Belgrade data unavailable)Under €50bn| 14 | Jones Lang LaSalle -20 -10 0 10 20 30Retail Sales Growth Forecast (5 yr %)CrossBorderRetailerIndexRanking€50bn -€100bn€100bn -€200bn€200bn -€300bn€300bn -€400bnOver €400bnMalmõAnkaraLuxembourgLeedsHelsinkiCardiffBelfastNottinghamEdinburghGothenburgGlasgowStuttgartBordeauxLilleOsloBirminghamBilbaoLiverpoolSeville TurinCologneValenciaBucharestBudapestZagrebLyonCopenhagen ManchesterMarseilleHamburgAthensAmsterdamFrankfurtViennaAntwerpLisbonDüsseldorfBrusselsZurichStockholmDublinLondonParisMilanMunichRomeMadridBarcelonaBerlinMoscowSt PetersburgPragueIstanbulWarsawKievBratislavaKey:growth markets
  • Moscow ranks as the third most attractive location for international retailers in Europe.Russia is predicted to become Europe’s leading retail market, with disposable incomesincreasing rapidly and a burgeoning middle class. Moscow’s high overall ranking in ourIndex is due mainly to the high penetration of mass retailers in the city. There are over80 shopping centres in the Moscow region (with a further estimated 320,000 sq m in thepipeline), in addition to some prominent areas of high street retail. Tretyakovsky Proezdis the main luxury street, whilst the GUM and TSUM areas, in addition to Petrovka andStoleshnikov Lane, also host luxury brands. The main streets for local and internationalmass market brands are Tverskaya, Novy and Stary Arbat. Recent entrants into themarket include; American Eagle, Victoria’s Secret, American Apparel, Ben Sherman,Koton, La Senza, Mac Cosmetics, Marlboro Classics, Okaidi and Warehouse.StPetersburgistheeighthmostattractivelocationforinternationalretailers in Europe. St Petersburg is the second largest city inRussia, and a major financial and industrial centre. Consumerspend is divided between out-of-town regional shopping centresand the city centre, which is skewed towards mass-market andpremium brands. Nevskiy Prospect is the historic centre of thecity and the most popular street, providing a large variety of massmarket shops. Premium brands are found mainly in multi-brandchain stores. 2010 brought long-awaited large new schemes tothe market, Galeria and Nevskiy Centre, and there is a furtherestimated 425,000 sq m in the pipeline. Recent entrants intothe market include Chanel, Guess, Mac Cosmetics, MarlboroClassics, Sephora and Trussardi Jeans.MoscowRANK 3St PetersburgRANK 8| 16 | Jones Lang LaSalle Destination Europe 2013 | 17 |Istanbul is the eleventh most attractive location for international retailersin Europe. Turkey is the seventh largest organised retail market inEurope, with a total leasable area of 8.3 million sq m across 332 shoppingcentres. Approximately 2.6 million sq m of leasable space is currentlyunder construction, with Istanbul accounting for almost half of this total.The huge market of approximately 13.3 million consumers in Istanbul isviewed by many retailers as the perfect gateway to the Middle East andCaucasus region. Istanbul’s retail market is revolutionising itself at greatspeed, with significant quantities of modern shopping centre stock comingonline. The importance of shopping centres in the market is growing, withthe likes of Forum Istanbul and Istinye Park trading particularly well. Thiswill be further fuelled by the huge development pipeline, and in particularthe imminent opening of several landmark schemes, including the ZorluCenter and Emaar’s Boulevardi. Istanbul’s retail culture is still mostlydominated by the high street, however, with Istiklal Street the dominantmass market location on the European side, along with Nişantaşi district,which caters for luxury brands. On theAsian side, Bagdat Street is the mostwell-known and popular area, featuring a range of local and internationalbrands. Recent entrants into the market include Aeropostale, Carluccio’s,Zadig&Voltaire, Promod and Gymboree.Prague ranks as the ninth most attractive location for international retailers in Europe. The Czech Republic capital’sretail market is dominated by shopping centres. Nový Smíchov shopping centre is located on one of the busiesttransport hubs in Prague, helping make it the best performing centre in the city. The prime high street locations areconcentrated in two places; the area around Na Příkopě provides the mass retail offer, and includes four shoppinggalleries. Pařížská Street is home to luxury brands such as Louis Vuitton and Hermès, and offers a smaller numberof shops in a more ‘intimate’ atmosphere. Recent entrants into the market include Carpisa, Aldo, T.M. Lewin,Desigual, Tiffany & Co, Jimmy Choo and Parfois.PragueRANK 9IstanbulRANK 11
  • Other Hotspot Retail MarketsIn addition to the fast-moving growth markets, there are a number of more establishedretail markets that have attracted retailers in the last 12 months, and which benefitfrom a relatively strong retail sales growth outlook. In particular, the Benelux cities(Brussels, Amsterdam, Antwerp), have seen some of the strongest internationalretailer interest in the last 12 months. And the regional German cities of Frankfurt andDüsseldorf, together with Vienna, are all established, affluent markets which havebeen successful in attracting international retailers from the first-stop core cities, onthe next phase of their expansion.Further down the rankings, there are numerous retail markets that are relativelyuntapped from an international retailer perspective, but which are forecast to benefitfrom above average retail sales growth. Whilst relatively small in terms of overallmarket size, the affluent Scandinavian markets of Malmõ, Gothenburg and Helsinki,in addition to some of the larger UK regional cities of Edinburgh, Nottingham, Belfastand Cardiff, should be on the radar of expansive international retailers going forward.Warsaw ranks as the equal nineteenth most attractive location for international retailersin Europe. The retail landscape in the Polish capital is dominated by shopping centres, areflection of the shopping patterns of Polish consumers, who prefer covered schemes toexposed streets. Nevertheless, high street locations are gradually gaining in importanceand capturing retailers’ interest. The prime high street locations are concentrated inMarszałkowska Street, along with the renovated Wars and Sawa Junior departmentstores. This area is the most sought-after pitch for popular mass market brands.Warsaw’s shopping centres continue to perform strongly, in particular the Zlote Tarasyscheme. Recent entrants into the market include Gap, Cos, American Eagle, Victoria’sSecret, Bath & Bodyworks, Carpisa and Marco Polo.The Ukrainian capital is the equal twenty-third most attractivelocation for international retailers in Europe. After a longperiod of uncertainty resulting from the financial crisis andpolitical instability, Kiev’s retail market activity has picked upmarkedly. The recent European Football Championshipsstimulated significant infrastructure and commercial real estatedevelopment, but Kiev still lags behind most European capitalsin terms of quality of shopping centre stock and provision percapita. The main shopping streets in Kiev include Kreschatik,Krasnoarmeyskaya and Sagaidachnogo – home to the inter-national brands. Upmarket brands traditionally prefer theprestigious area around Passage and Gorodetskogo. Thereare several shopping centres in the city centre with qualitytenant-mixes, including Globus and Mandarin Plaza. The re-constructed TSUM is expected to be opened on KreschatikSt in 2015. Recent entrants into the market include Diesel,Oviesse, Valentino, Prada, Dolce & Gabbana, Mac Cosmeticsand Trussardi Jeans.| 18 | Jones Lang LaSalle Destination Europe 2013 | 19 |WarsawRANK 19=KievRANK 23=
  • 1000 2000 3000 4000 5000 6000 7000 8000240220200180160140120100806040International Prime Rent (€/sq m/year)CrossBorderRetailerIndexZurichParisLondonMoscowMilanMadridRomeMunichSt PetersburgIstanbul BarcelonaBerlinFrankfurtHamburgCologneDüsseldorfAmsterdamAthensLisbonBrusselsWarsawAntwerpKievStuttgartMalmõGothenburgAnkaraBilbaoSevilleLeedsEdinburghNottinghamBefastLiverpoolBirminghamStockholmBucharestBudapestZagrebValenciaDublinCopenhagenManchesterOsloPragueAmsterdam| 20 | Jones Lang LaSalle3.Rental AnalysisCross Border Retailer Index vs. International Prime RentSource: Jones Lang LaSalleUnder €50bn €50bn -€100bn€100bn -€200bn€200bn -€300bn€300bn -€400bnOver €400bnKey: Country Level Retail Sales (2011)LyonCardiffLuxembourgHelsinkiTurinGlasgow / Bordeaux / Lille / MarseilleRetailer appetite for the best space across Europe remains strong. Many top-tierretailers will accept flagship space (often in the form of brand pavilions, which areeffectively showroom style stores that showcase the brand) in iconic locations, andnothing less. This is maintaining or, in some instances, putting upward pressure onrents in super-prime locations, while more secondary locations are seeing highervacancies and reduced demand for space.Looking at the rental levels commanded by international retailers (luxury rents areexplored later in the report), there is a clear correlation between the number ofinternational retailers present in a market, and the prime rents paid by internationalretailers, as demonstrated opposite.BratislavaBelgrade
  • | 22 | Jones Lang LaSalleParis, Zurich and London clearly commandthe highest international retailer rentsfor prime, mainstream retail space,on the Avenue des Champs-Élysées,Bahnhofstraße and Oxford Street re-spectively. The core cities of Munich andMilan, as well as the growth powerhousemarket of Moscow, are also commandinghigh rents, and lead the following pack.The graph on the previous page also clearlyidentifies the regional clusters, whereby UKregional, Scandinavian, French regional,German, Benelux, Eastern European andSouthern European cities are generallygrouped together. Whilst not surprising,this illustrates that there are useful referencepoints and commonalities between cities inthe same country or region.The maturity of the retail market clearlyinfluences prime rental levels. The growthmarkets of Istanbul, St Petersburg, Warsaw,Prague and Kiev are all commandingrelatively low rental levels, relative to theirinternational retailer presence. Thesemarkets are also forecast to benefit fromsome of the strongest medium-term retailsales growth in Europe. Clearly as thesemarkets mature, retail sales grow, and thenumber of international retailers presentincreases, rents are likely to rise further.Paris commandstop internationalretailer rentsRetail Sales Growth Forecast vs. International Prime RentSource: Jones Lang LaSalle, Oxford Economics (Belgrade data unavailable)ParisLondonZurichMoscowAnkaraWarsawKievLisbonBilbaoAthensSevilleMilanHamburgMunichCologneBucharestOslo 1000 2000 3000 4000 5000 6000 7000 80002520151050-5-10-15-20International Prime Rent (€/sq m/year)RetailSalesGrowthForecast(5yr%)LiverpoolZagrebAntwerpBrusselsDüsseldorfMalmõStockholmPragueBarcelonaDublinValenciaTurin RomeMadridFrankfurtGothenburgBerlinStuttgartViennaLeedsCopenhagenMarseilleBordeauxAmsterdamLyonBelfastBudapestNottinghamEdinburghIstanbulGlasgowManchesterBirminghamLuxembourgHelsinki CardiffLilleSt PetersburgKey:core marketsgrowth marketsBratislava
  • Italy tops the retailer exporter leagueLooking at the country of origin of international retailers, as we can see in the map overleaf,Italy is the number one exporter of retail fascias, accounting for 17% of total internationalretailer presence in the 57 European markets covered. Benetton and Diesel are the highestplaced Italian retailers, with strong coverage across the 57 markets. However, it is thestrength of the Italian Luxury retailers which accounts for Italy’s position at the top of therankings. Max Mara is the most prolific luxury retailer in our analysis, with presence in 75%of the markets covered.Italy’s supremacy, however, is under threat from across the Atlantic. The US is currently insecond place, accounting for 16% of total international retailer presence, but is rising rapidlyas American retailers continue to selectively expand across Europe. Long establishedoperators such as Starbucks continue their expansion and a variety of newer entrants tothe market, including most recently, Victoria’s Secret are exploring new markets.The UK ranks third, accounting for 13% of all international retailer presence. Whilst Londonis the largest importer of international brands, the UK is also successfully exporting brandsglobally. Retailers such as The Body Shop, Lush, Burberry, Marks & Spencer, Debenhams,Primark, Superdry, and Topshop are actively, albeit selectively, expanding into newterritories.The top three exporter countries are followed closely by Germany, also accounting for 13%of the market, driven by its strength in mass market retailing, France with 12%, driven byLuxury, in particular through the large holding companies of Pinault-Printemps-Redoute(PPR) and LVMH, and Spain with 10%, driven mainly by the reach and coverage of Mangoand the Inditex brands.We have also analysed the main countries targeted by the top six exporter countries. Notsurprisingly, it is generally a question of neighbouring, familiar markets being the favouredtarget countries. The Italian brands have strong presence in the German and Spanishcities, for instance, the US brands initially favour the UK market, and London specifically,as their springboard into Europe. UK retailers have a strong presence in Germany andincreasingly in Russia, whilst French retailers target the neighbouring German cities, andSpanish retailers are heavily represented in French cities.| 24 | Jones Lang LaSalle Destination Europe 2013 | 25 |4.Retailer Countryof Origin
  • SPAINRetailer RankZara 1stMango 3rd =Massimo Dutti 11th =Bershka 31st =Desigual 31st =ITALYRetailer RankBenetton 3rd =Diesel 11th =Max Mara 13th =Geox 16th =Emporio Armani 37th =FRANCERetailer RankLouis Vuitton 19th =Petit Bateau 37th =Escada 37th =Cartier 47th =Hermès 53th = GERMANYRetailer RankAdidas 16th =Hugo Boss 19th =New Yorker 24th =Deichmann 27th =Puma 27th =UKRetailer RankThe Body Shop 3rd =Lush 6thBurberry 31st =Karen Millen 37th =Marks & Spencer 64th =Retailer Country of OriginSource: Jones Lang LaSalle1st6th5th3rd4th| 26 | Jones Lang LaSalle Destination Europe 2013 | 27 |USARetailer RankTimberland 7th =Tommy Hilfiger 7th =Foot Locker 9th =Claire’s 16th =Starbucks 19th =2ndKey:Rank – Retailer Coverage Ranking (1-250)
  • Zara tops the coverage leagueZara is the only retailer with 100% coverage across all the key Europeanmarkets reviewed, and therefore tops the retailer coverage league. Zara’sSpanish owner Inditex group also owns the Massimo Dutti premiumclothing brand, which ranks equal 11th in the retailer coverage list. In total,the Inditex Group operates 5,693 stores across the world, and opened 166stores in the first six months of 2012 alone.Swedish retailer, H&M, is second on the list, with presence in 96% ofmarkets covered. Despite its first international expansion taking placenearly 50 years ago, pan-European coverage has only really materialisedin the last five to ten years. With plans to open stores in Mexico, Malaysiaand Kuwait over the next eighteen months, H&M clearly has its sights onglobal coverage.Rival UK cosmetics retailers, The Body Shop (equal 3rd) and Lush (6th),are closely matched in terms of coverage of the key European markets.Both use a franchise model, which provides retailers with a quick and lowrisk means of increasing coverage. In addition, the need for small retailunits, combined with relatively affordable products, allows both retailers toexport their brand successfully with relative ease across many markets.Not surprisingly, Starbucks is the only Food and Beverage retailer to makethe Top 20 of the coverage table (equal 19th). Further expansion lookslikely, as plans to open 300 new stores across the EMEA region in the nextfive years have been widely reported.The Top 20 is dominated by retailers we define as mainstream, accountingfor 12 out of the Top 20 retailers by total coverage. There are six premiumretailers within the Top 20, with US retailers Tommy Hilfiger and Timberlandranking highest (equal 7th), both with over 80% coverage of Europe’s keymarkets. Italy’s Max Mara (equal 13th) and France’s Louis Vuitton (equal19th) are the only Luxury brands to make it into the Top 20.ZaraH&MThe Body ShopBenettonMangoLushTommy HilfigerTimberlandFoot LockerG-StarDieselMassimo DuttiMax MaraJack JonesGantGeoxClaire’sAdidasStarbucksLouis VuittonHugo Boss60 65 70 75 80 85 90 95 100Top 20 Retailers% Coverage of Europe’s Key MarketsSource: Jones Lang LaSalle| 28 | Jones Lang LaSalle Destination Europe 2013 | 29 |Mainstream Premium Luxury5.Extensive andExpansive Retailers123=3=3=67=7=91011=11=13=13=13=16=16=16=19=19=19=City Rank
  • Significant expansionopportunities remain…Perhaps surprisingly, only nine retailers have morethan 80% coverage across Europe’s key markets.For the majority of international retailers, therefore,significant expansion opportunities remain. In fact,over 100 retailers have presence in less than 20%of markets covered. For these retailers, over 80%of the key markets analysed across Europe remainuntapped.Amongst those retailers which are currently inexpansive mode are North American retailers,Guess, Forever 21, Apple, Starbucks and MacCosmetics, in addition to European players MichaelKors and Calzedonia.…although challengesto overcomeThere is a great temptation to access the huge poolof potential new customers in foreign markets, inparticular for retailers that perhaps are not seeingany growth or even struggling in their domesticmarkets. Expansion for these reasons very rarelyworks, and it is important to have a strong, well-runbusiness, before dedicating the extensive time andresources needed for expansion.6.Luxury| 30 | Jones Lang LaSalle Destination Europe 2013 | 31 |One of the largest tests for international retailerslooking to grow in Europe’s key markets, is the riskthat the brand or product does not translate acrossborders. Unfortunately, there are numerous examplesof retailers that have endeavoured to break into a newmarket later to withdraw. Market testing is crucial,and one of the principal advantages of e-commerceis the ability to build brand awareness overseas priorto arrival, of which there are many examples.E-commerce, and social media in particular arefacilitating and accelerating the internationalisationof fashion trends in particular. Previously retailerscould not transfer products as easily, as they werehistorically designed for targeting domestic markets.This generally left the retailer with the choice to eitheraccept lower sales densities in overseas markets orto design and source separate ranges. There are nowmore than 1 billion consumers using Facebook eachmonth around the world. Consumers everywhere,therefore, are increasingly exposed to the samefashion and cultural influences.The second major challenge lies in understandingmarket differences. The complexities of localmarket fundamentals exist across all retail markets,irrespective of geography. In this context, localexpertise or partnering is paramount in order to try andavoid the pitfalls, in terms of legislation, site selectionand lease terms.
  • LondonParisMoscowMilanMadridRomeMunichIstanbulBarcelonaZurichSt PetersburgKievHamburgPragueAthensFrankfurtBerlinViennaBrusselsDüsseldorfAmsterdamLisbonWarsawAntwerpValenciaBudapestCopenhagenStockholmBucharestCologneTurinBilbaoBordeauxLyonSevilleLilleStuttgartZagrebLuxembourgManchesterMarseilleOsloBelgradeDublinHelsinkiAnkaraBirminghamEdinburghGlasgowLeedsLiverpoolNottinghamBelfastBratislavaCardiffGothenburgMalmõ0 50 100 150 200 250 300 350 400 IndexThe rise and rise of luxuryThe global luxury market has remained relatively sheltered fromthe economic crisis. Despite a short period of slower sales in2009, the market bounced back in 2010 and continued to flourishthroughout 2011 and into 2012. Whilst economic uncertainty hasdeterred most global middle-income shoppers, affluent Westernshoppers have flocked back to the luxury brands, which togetherwith economic growth in the BRIC nations and an insatiableappetite for luxury goods in the Far East, has driven growth in theluxury goods market globally.According to retail expert Verdict, the global luxury goods marketwitnessed strong growth to 2010, and is currently valued at €320bn.Verdict’srecentforecastssuggestthatthisexpansionarytrendissetto continue, with estimates valuing the market at around €390bn by2015. Europe remains the largest luxury goods market, with over€90bn being spent on luxury branded products in 2010. However,Asia Pacific is the only market not to have suffered a drop in luxurysales in 2009, and is set to experience unprecedented growth overthe next five years, rapidly closing in on Europe’s number oneposition. By 2015, Asia Pacific’s luxury goods market is expectedto be valued at €112bn, up 92% on today’s valuation. The growingwealth creation in the Asia Pacific region, most notably throughoutChina, and the sheer volume and size of its densely populatedcities, has made it a very attractive destination for luxury retailers.The Global Luxury Houses have emerged from the financial crisismuch faster and stronger than most businesses. Burberry, GucciGroup, Hermès, LVMH, Polo Ralph Lauren and Richemont haveall revealed strong sales growth, with some recording record salesin the last year. Expanding store networks have driven growth,particularly across the Asia Pacific region, where retail operationstypically outperform the rest of the business elsewhere in the world.But despite this rapidly expanding region, Europe remains a core,mature and key market for the international luxury retail brands.| 32 | Jones Lang LaSalle Destination Europe 2013 | 33 |Cross Border Luxury Retailer Index 2012Source: Jones Lang LaSalle(Average representation = 100)123456789=9=111213=13=15=15=17=17=19=19=21222324=24=26=26=26=29303132=32=32=32=36=36=36=39=39=39=39=43=43=43=46=46=46=46=50=50=50=53=53=53=56=56=City Rank
  • 400350300250200150100500 1000 2000 3000 4000 5000 6000 7000 8000 9000GrowthLuxuryMarketsEstablishedLuxuryMarketsEmergingLuxuryMarketsPrime Rent Luxury Districts (€/sq m/year)CrossBorderLuxuryRetailerIndexCross Border Luxury Retailer Index vs Prime Rent (Luxury District)Source: Jones Lang LaSalleLondon pips Paristo the postIn 2011, we published a report, ‘Glitter & glamourshining brightly’, which analysed the 100 most re-nowned luxury brands, and their presence in Europe’stop retail centres. As part of this research, we haverevisited this work, expanding the number of marketscovered in the analysis to the 57 key retail marketscovered in this report.In our 2012 report, London leads the rankings in termsof luxury brand presence, marginally ahead of Paris,befitting their status as the two most renowned retaillocations in Europe. The growth market of Moscowlies in third position, as in the overall index, followedby Milan, Madrid, Rome and Munich. These marketsrepresent the mature luxury retail markets acrossEurope, each with a critical mass of international luxuryretailers which attract both domestic and internationalconsumers seeking high-end shopping experiences.| 34 | Jones Lang LaSalleLondonParisMoscowMilanRomeMadridMunichZurichViennaIstanbulBarcelonaHamburgFrankfurtBerlin DüsseldorfSt PetersburgPragueBrusselsAmsterdamLisbonKievAthensValenciaBudapestWarsawZagrebAnkaraBucharestSevilleAntwerpCopenhagenStockholmTurinLyonStuttgartLuxembourgBelfastCardiffMalmõGothenburgLiverpoolBilbaoHelsinkiMarseilleEdinburghBordeauxCologneLyonOslo DublinBratislavaBelgradeLilleNottinghamGlasgowLeeds
  • Italian luxury brand, Max Mara, has the highest presence amongst luxury retailers, with 75% coverage of allmarkets. Louis Vuitton is the only other luxury retailer with over 70% coverage. Other luxury retailers withover 50% coverage are; Burberry, Mont Blanc, Emporio Armani, Cartier, Hermès and Gucci. Expansive luxuryretailers include Tory Burch, Bottega Veneta and Mulberry.New Bond Street: fromprime to über-primeWe have also analysed rents commanded by luxury retailers acrossthe 57 markets covered. New Bond Street in London tops the rentalleague, with headline rents of over €8,300 per sq m per year, followingrecent growth this year due to pent up demand for space finally beingrealised.AvenueMontaigneinParisliesinsecondplace,commandingrents of €7,500 per sq m per year. Despite the relatively small marketsize in terms of international retailer presence, Bahnhofstraße inZurich commands the third highest rents in Europe, at just over €7,000per sq m per year. This is followed by the Italian luxury shoppinglocations of Via Condotti in Rome and Via Montenapoleone in Milan,both at €6,700 per sq m per year and Stoleshinkov Lane in Moscow,commanding €6,000 per sq m per year.There is a clear gap between the rental levels in the top six luxuryretail locations, and the rest, which are led by Vienna and the Germancities. On this basis, Madrid (and to a slightly lesser extent Barcelona)and the growth markets of Istanbul and St Petersburg, all withestablished luxury retail markets, currently appear to provide luxuryretailers with relatively good value for money.Max MaraLouis VuittonBurberryMont BlancEmporio ArmaniCartierHermèsGucciBallyErmenegildoGiorgio ArmaniBulgariSalvatoreLongchampChopardChanelPradaBottega VenetaTiffany & CoTod’s30 40 50 60 70 80Top 20 Luxury Retailers% Coverage of Europe’s Key MarketsSource: Jones Lang LaSalle| 36 | Jones Lang LaSalle Destination Europe 2013 | 37 |Max Mara is the mostprevalent luxury retailer1234=4=67=7=9101112131415=15=17=17=19=19=City Rank
  • Looking ahead, the numerous challenges facingretailers operating internationally will persist. Aswilltheeverchangingcompetitiveenvironmentthatforces retailers to consider shorter-term, domesticopportunities with longer-term opportunities indeveloping markets. The top retailers in the nextdecade are likely to be those that focus on aportfolio of markets, with different levels of risk(core and growth), at different levels of maturityand with distinct consumer profiles.There are undoubtedly significant expansionopportunities for retailers across Europe’skey city markets. The key is for retailers tofully understand and maximise current storeportfolios, before assessing the detailed risks andbenefits associated with international expansion.And above all, to partner with knowledge andexperience to achieve strategic, profitable andlong-lasting growth.What is becoming increasingly clear, is thatborders are becoming irrelevant, and theinternationalisation of retail is gaining unstoppablemomentum.| 38 | Jones Lang LaSalle Destination Europe 2013 | 39 |7.ConclusionMethodologyThe analysis looks at the presence of brands in thespecific cities, as well as retailers which are openingimminently, focusing solely on retailers’ own shopnetworks, including franchises. Retailer concessionsare excluded as are second-line brands, multi-labelstores and branded shops within department stores,due to the lack of transparency. Geographically thestudy looks at the downtown area of each individualcity, concentrating on its well-known shopping areas,supplemented by surrounding areas and out of townmalls in prime locations.Prime rents represent the top open-market rent thatcould be expected to be paid by international and/or luxury retailers for a notional unit of the highestquality and specification, in the most prime location ina market.
  • ContactJames DolphinHead of EMEA Retail Agency+44 (0)7921 944 355james.dolphin@eu.jll.comJames BrownHead of EMEA Retail Research & Consulting+44 (0)7860 408 863james.brown@eu.jll.comColin BurnetAssociate Director, EMEA Retail Research & Consulting+44 (0)203 147 1185colin.burnet@eu.jll.comwww.joneslanglasalle.euCopyright (c) Jones Lang LaSalle IP, INC 2012No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable.Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.