The results are in; both the United Kingdom and London will be booking limousines, dusting off their best dresses, and preparing tearful acceptance speeches.
The 2011 edition of How Global is the Business of Retail?, an annual survey by CB Richard Ellis (CBRE), has revealed that for the fourth year in a row the UK retains its diamante-encrusted crown as the most international retail country in the world. London is named as joint-winner of the most popular retail city in the world category, sharing the commercial property red carpet with Dubai and enticing 56% of all international retail brands.
The survey examines 323 of the top worldwide retailers, identifying trends and patterns of expansion across commercial property in 73 countries.
The UK attracted 58% of all international retail brands and achieved a consumer spending growth of 1.5% in 2010. The weak pound’s role as a catalyst for London’s commercial property market is recognised as a factor in persuading 200 million shoppers to pass through the West End last year.
The runner-up was the UAE with 54%, leaving the US slightly less exposed to the paparazzi flashbulbs with just 50%.
Best commercial property supporting act goes to international expansion; 40% of new openings occurred outside the retailer’s home region.
The limited supply of commercial property is expected to hamper further development; the survey cautions that expansion slowed to 2% in 2010, compared to 4% in 2009 and 12% in 2008.
The shortage of prime commercial property has led CBRE’s Richard Gold to predict that ‘more retailers may look to grow their business via online platforms rather than expanding their physical store network.’
London is also formally inducted into the hall of fame as one of only two cities outside Asia where Asian retailers have more than a 10% presence and, with 62.7% of all North American retailers present in London, the capital has been their number one global target.
The survey notes that consumer spending remains subdued, and the lack of new shopping centre development means diva-like unpredictability remains in store for the global economy.
