Restaurants, Coffee Shops Lead International Retail Expansion
Restaurants and coffee-shop chains are the most active retail category for international expansion as landlords everywhere make shopping centers more inviting by adding more experiential, “Internet-proof” uses, reported CBRE, Los Angeles.
The CBRE How Global Is The Business Of Retail? report said restaurants and coffee shops accounted for one quarter of retailers’ debuts in new countries last year, the largest percentage for any retail category and a significant jump from 18 percent in 2016.
“Restaurants, along with fashion, always have been among the most exportable retail concepts,” said CBRE Global President of Retail Anthony Buono. “That’s even more the case now that shopping center owners across the globe are actively embracing the role of food and beverage in creating compelling consumer experiences that draw in and retain shoppers.”
Buono noted this “reshaping” of retail center rosters is taking place as much in Asia and Europe as it is in the Americas. The report found “numerous” examples of cross-border expansion by restaurants and coffee shops. Examples included last year’s introduction of American brand P.F. Chang’s China Bistro in London and French fine-dining brand Le Petite Maison’s Abu Dhabi launch.
CBRE said U.S. retailers remain the most active global expanders into foreign markets, with 19 percent of retailers expanding into new international markets last year doing so from the U.S. The next most active expanders were Italy (10 percent), France (10 percent) and Japan (9 percent).
Overall, the U.S. attracted 32 international retailers that made their debut in the country last year, ranking it 15th among countries for new entrants. Within the U.S., New York attracted the most debuts by international retailers with 15, followed by Miami with 10, Philadelphia with eight and San Francisco with seven.
Overall, retailer’s cross-border expansion into new markets declined 2.9 percent last year from 2016 levels, CBRE Americas Retail Leader Brandon Famous said. He noted the dip reflects a broader trend of retailers making “deliberate, data-focused” decisions on opening stores that fit their strategic plans.
“International retail expansion is thriving, and it is doing so in a much more targeted manner using location analytics and guidance from expert advisors,” Famous said. “E-commerce has allowed retailers to showcase their brands for consumers in every corner of the world.”
Famous said this change means a retailer might not need to establish a flagship store on every high street and can focus on opening in select emerging markets that enhance its “omnichannel” brand, which gives the customer a seamless shopping experience whether the purchase is made online, by telephone or in a bricks-and-mortar store.
