Skip Ribbon Commands
Skip to main content

News

London

Retailing Abroad – Going East

Jones Lang LaSalle releases part seven of Retail 2020 report


London, 6th September 2010 - Jones Lang LaSalle today published part seven of its Retail 2020 study; Going East. Retail 2020, which was launch on 28th May via a bespoke interactive website, examines the rapidly changing global retail landscape over the next ten years.
 
Part seven of the report examines the continuing move from both Western European owners and occupiers towards the relatively underdeveloped and rapidly growing consumer markets in the East. The increasing saturation of retail space in Western Europe provides a strong incentive for retailers and investors to expand into Eastern markets, particularly India and China which have unconsolidated local retail markets but growing consumer populations.
 
Robert Bonwell, CEO EMEA Retail at Jones Lang LaSalle, said: “China and India are set to experience continued economic growth over the next decade and the rising wage levels will take retail demand levels into a higher orbit. The growing middle classes in these countries love Western brands, particularly luxury ones and are increasingly able to afford them. This is a long-term trend that no retailer or shopping centre owner can afford to miss, especially as China and India are the two highest populated countries globally.”
 
James Dolphin, Head of pan-European Retail Agency at Jones Lang LaSalle, said: “Whilst the European retail industry will funnel more resources into expanding across the Far East, there will also be moves closer to home.  With stable governments, low debt levels and growing populations, the Nordic countries will prove attractive for expansive retailers, with many major international brands already formulating and working through a 'Nordic-wide' expansion strategy; whilst in Russia rising oil and gas prices will further increase consumer purchasing power and this should reap big rewards for new entrants by 2020.”
 
Egypt and Turkey are two other countries attracting interest. Turkey has been on retailer’s radars for several years but still presents plenty of growth opportunity over the next decade. Egypt however is only beginning to see genuine activity and will be a key emerging market for those players pursuing serious global strategies.
 
Bonwell concluded: “Despite various opportunities in the East, successful expansion will remain a challenge and those who succeed will be the ones who manage to determine where the next retail hot spot is, when it will take off and establishing how much should be invested. It will be crucial to factor in relevant risks of entering a new market, such as volatile political systems, but also to put in place sophisticated expansion models which consider e-commerce growth patterns.”
 
 – ends –
 
Notes to Editors:
  • Retail 2020 can be found at www.retail2020.com
  • Retail 2020 explores the shape of retail to come, covering dimensions such as sectors, locations, formats, offers and geographies, as well as profitability (growth, costs and business models), and will be released in a series of chapters starting on 28th May. The aim of Retail 2020 is to provide a pertinent assumption base around the future of European retail.
  • Jones Lang LaSalle and the Retail 2020 web portal intends to lead the conversation for the retail industry as a whole on the future of the sector and the implications this has for the real estate sector, but also offer blogs, videos, news, interactive polls and client profiles.
  • Retail 2020 follows on from the Retail Futures, 2010 report, published ten years ago by Jones Lang LaSalle, which successfully predicted many of the forces which shaped the consumer and retail landscape between 2000 and 2010.