Report


International T


appeal


he many international retailers testing and expanding their formats in the UK demonstrates the vibrancy and strength of the retail market here. London, of course, tends to be the top location for those looking to


get maximum marketing leverage out of a flagship store, but in the past few years cities and big retail centres outside the capital have been added to the road map for a national presence. As a result the likes of Gilly Hicks at St David’s in Cardiff,


plus Hollister at the upcoming Trinity Leeds are just two examples of iconic US retailers confident of branching out beyond London, although the UK capital – which according to a recent survey by CBRE attracted 55.6% of all internation- ally active retail brands last year – remains the destination of choice. The property agent’s survey put London as number one for global retail appeal. While London benefited from a mini-boom in 2011 as tourist


spending boosted a relatively robust local economy, the UK also retained top position as the most penetrated global country with 56.7% of retailers in the survey present. For instance in Glasgow, Land Securities’ 155,000 sq ft, £70m investment in the redevelopment of 185-221 Buchanan Street will include US fashion powerhouses Forever 21 and Skechers. “Retailers are seeking to de-risk their expansion activities,


generally choosing markets like the UK that are regarded as safe havens,” says Peter Gold, head of EMEA cross border retail at CBRE. “London is generally the first port of call for global retailers, but once they have established a presence in the capital, they are willing to extend their reach into other major UK cities, as well as major regional shopping centres.” London, Manchester and Birmingham are all in CBRE’s


list of European cities attracting most international retailers. UK consumers are often already familiar with international


brands; which particularly aids expansion beyond London. Justin Taylor, chief executive, retail and leisure at Cushman & Wakefield, adds: “London offers a springboard to expand into other large markets in the UK such as Cardiff, Birmingham and Leeds as well as other key European capital cities.”


Right place, right time Andrew Bathurst, director at agency Harper Dennis Hobbs, notes that the push to prime locations in prime cities is even more apparent. “Forever 21 has looked at Europe as a single market and has been opportunistic about where it locates


NEW NAMES TO WATCH OUT FOR


The UK has welcomed a host of new retailers recently, with Victoria’s Secret the latest to arrive. Whole Foods Market has also confirmed expansion of its portfolio, while Hollister will open at Trinity Leeds and J Crew continues to scout for a London flagship despite a re-focus towards Asia. Crate & Barrel continues to weigh up options for the UK. French fashion retailer The


Kooples has opened stores in the UK, Coach opened a flagship on Bond Street and Forever 21 continues to expand, having established in London and Birmingham, with a new store planned for Glasgow. Designer Tom Ford is to open in Knightsbridge, Urban Outfitters is to open a store at Trinity Leeds and Chanel has opened its first standalone beauty store in Covent Garden. Newspaper, books and


convenience retailer Relay opened at the new wing of King’s Cross earlier this year and hopes to announce a second opening in 2012, while German footwear retailer Deichmann continues to expand in the UK. Japanese running and sportswear brand Asics has opened its largest store to date at the west end of Oxford Street.


The UK remains the top lure for international brands looking to expand beyond their borders. By Mark Faithfull


stores, depending on where the right real estate has become available,” he says. “I think we’ll see more of that as retailers and brands prioritise the major European cities for growth.” North American retailers are the most global with 73%


present in all three regions (Europe, Middle East and Africa; Asia Pacific; The Americas) and the UK is especially targeted. The reasons are often strategic. Language and cultural charac- teristics are less daunting for US retailers than mainland Europe, the market is transparent and the fiercely competitive nature of the market makes it a robust testing ground. If a US retailer can create a successful model in the UK, they have confidence they can succeed more widely in Europe. International brands also bring fresh stimulus to a retail


destination and consumer excitement, with awareness of global brands such as Forever 21 far higher. Taylor says: “It adds a point of differentiation to the tenant mix and with the strength of brands such as Apple, Hollister and Urban Outfitters attracts additional footfall and spend.” As a result London’s West End – the most international of


all Europe’s major retail locations – expects to see turnover from shops on and around Oxford Street, Regent Street and Bond Street surpass £10bn by 2020, up from about £7.5bn this year, according to the New West End Company. That has also been evidenced by the excitement that


preceded the opening of the new Forever 21 stores, the Victoria’s Secret store in London and the much anticipated J Crew, which is still looking for a London flagship. Despite their eagerness to enter new markets, retailers have also become more patient about waiting to find the right location – hence, for example, the long wait by both Uniqlo and Forever 21 to open stores after announcing their UK intentions. With little new development for international retailers


targeting the UK, Trinity Leeds is in a unique position six months ahead of opening with the scheme more than 80% pre-let and in solicitors’ hands and welcoming international brands such as Fossil and Swarovski – both new to Leeds – plus more global names such as Mango, Hollister and H&M. John Grimes, Land Securities’ leasing director for Trinity


Leeds, reflects: “There is an ongoing demand for quality space from UK and international retailers who want to be located in top cities like Leeds. Trinity Leeds is a stunning project, which people can now see and experience as the building is really taking shape. It’s becoming a real pull for international brands like Fossil and Pandora as it will be a retail beacon for the North.” l


autumn 2012 25


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