Feb 25, 2016
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Majority of brands say e-commerce growth won't affect store plans

Feb 25, 2016

The CBRE has just launched the seventh edition of its "How Active Are Retailers Globally?" report, which surveyed over 150 major international brands based in the Americas, Asia Pacific and Europe, Middle East and Africa (EMEA).


The report found that the vast majority, 83%, of brands say their physical store expansion plans will not be affected by the growth in e-commerce in 2016. Just 22%, a little over a fifth, of the brands worry about stiff competition from online retailing.

Of the brands surveyed, 17% are expanding extensively and looking to open more than 40 stores (up from 9% in 2015) in 2016. Most brands, 67%, plan to open up to 20 stores.  

Mark Disney, Executive Director, CBRE Shopping Centre Development & Leasing, commented: "The evidence from major shopping centres and the strongest high streets supports the findings with increased investment in physical stores sitting alongside growing online sales. Demand from retailers is stronger than for several years with a substantial number of global brands looking to expand in strategic locations or upgrade their stores to improve customer experience and showcase their brand. This comes in the form of new sites or existing stores being enlarged or upgraded to include further lines or collaborations that retailers may be pursuing. The stores need to support the range that can be found online, and vice versa."

Retailers are most interested in expanding in the core Western Europe market, with 35% targeting Germany, 33% France and 29% the UK. The top Asian market is China, where 27% of the retailers surveyed are looking to expand. 25% of retailers are looking to expand in the US in 2016. The most popular formats for expansion are street shops at 76%, and regional shopping malls at 72%.

A fifth of the brands, mainly ones from the Americas and EMEA, stated their intention to expand into travel hubs in 2016.

Mark Burlton, Global Executive,  Retail Occupier team, EMEA commented: "Despite the backdrop of economic uncertainty and the popularity of online shopping growing year on year, a physical store presence in key locations is still critical to the strength of a brand's presence."

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