This category accounted for the most global retail activity in 2017…
It’s not just your imagination. Coffee shops are popping up everywhere.
The coffee and restaurant category accounted for 25% of overall global retail expansion in 2017, up from 16% in 2016, according to a new report from CBRE. The growth of the category has been driven by the evolution of consumer shopping habits that are increasingly blurring the lines between retail and leisure, the report noted. Food and beverage retailers are taking advantage of the shift, positioning themselves as destination-worthy venues in the overall retail landscape.
The “How Global is the Business of Retail” report analyzed 47 countries and 123 cities globally to gauge the pulse of the overall global retail landscape and identify the sectors and markets that that came out on top 2017. It found that while retail continues to grow, it is doing so at a slower pace.
“Through our analysis of 334 global retailers, we found that expansion activity increased only marginally by 0.4% year-over-year,” CBRE stated. “This can, in large part, be attributed to economic shifts and new technologies, resulting in caution amongst retailer to not over-expand. These changes are forcing retailers to rethink their portfolios, prioritizing omnichannel strategies that connect front-end brick-and-mortar with back-end distribution with technology at the core. However, research found that retailers see the physical store footprint as fundamental to their overall growth strategies.”
In other report highlights:
• Dubai tops the ranks for international retailer penetration with 62% of retailers surveyed having a presence in the city. Dubai is set to see retail space increase by 50% during the next three years.
• Hong Kong, the United Arab Emirates and the United Kingdom took the top three spots in 2017 with the most new retail entrants.
• New York was the top U.S. destination for global brands in 2017, followed by Miami, Philadelphia, San Francisco and San Diego. London is retailers’ favorite city in Europe for international expansion.
• New entrant activity has been largely focused on Europe and Asia, primarily driven by home-grown brands who are capitalizing on opportunities within their own region. Overall expansion into Asia increased by 8% last year, largely due to increased focus on Asia by retailers from the Americas.
For the full CBRE report, click here.
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