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Singapore ranked 9th in top target market by international retailers in 2016, with 21 percent of survey respondents saying they are eyeing to set-up a presence or expand in the country, revealed a CBRE report.
The city-state tied in the rank with Spain.
Meanwhile, Germany clinched the number one spot as 35 percent of international brands are keen to establish or strengthen their presence there, followed by France (33 percent) and the United Kingdom (29 percent).
At the fourth spot is China (27 percent), trailed by the United States (25 percent) and Hong Kong (24 percent). Completing the top 10 is Japan and the Netherlands (22 percent).
The report also revealed that majority of the retailers surveyed are eyeing top open more than 20 stores this year. In particular, 19 percent are mulling to set-up 1 to 5 stores, 17 percent are eyeing more than 40 stores while 10 percent are content with 21-30 stores. CBRE said this trend was largely driven by North American or European brands. Meanwhile, 25 percent of the respondents remain cautiously optimistic and are planning to open 6 to 10 stores globally, while 23 percent are considering 11 to 20 stores.
In terms of store formats, the three most popular for international retailers are street shops (76 percent), regional shopping malls (72 percent) and open-air shopping malls (45 percent).
Over half of the brands surveyed or 56 percent place importance on shorter leases, while 52 percent value flexible break/renewal options. Retailers also noted the importance of signage and frontage, turnover rent clause, and rental caps.
Retailers also identified their biggest concerns for the business this year. 56 percent of the respondents say the biggest issue for retail brands is the rising cost of real estate. Other challenges include unclear economic prospects (42 percent) and lack of quality retail space (37 percent).
Meanwhile, 83 percent of the respondents said their physical store expansion plans in 2016 will not be affected by the growth of e-commerce .
“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,” said Mark Disney, Executive Director of CBRE’s Shopping Centre Development & Leasing.
“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,” he added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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