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CBRE Report: Restaurants, Coffee Shops Increase Lead in International Retail Expansion
By Dennis Kaiser
Restaurants and coffee-shop chains increased their lead as the most active retail category for international expansion. They capitalized on a global effort by landlords to make their shopping centers more inviting by adding more experiential, Internet-proof uses, according to CBRE’s newly-minted 11th annual “How Global Is The Business Of Retail?” report.
The report found that restaurants and coffee shops accounted for 25% of retailers’ debuts in new countries last year, the largest percentage for any retail category. In 2016, the restaurant-and-coffee sector held an 18% share.
CBRE’s Anthony Buono says, “Restaurants, along with fashion, always have been among the most exportable retail concepts. 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. This reshaping of retail-center rosters is taking place as much in Asia and Europe as it is in the Americas.”
CBRE’s annual survey found numerous examples of cross-border expansion by restaurants and coffee shops, with that category accounting for a quarter to half of new retail entrants in Taipei, Tokyo, Phnom Penh, Abu Dhabi and Dubai, among others. Examples include the debuts last year of American brand P.F. Chang’s China Bistro Inc.’s in London (pictured) and French fine-dining brand Le Petite Maison’s debut in Abu Dhabi.
Overall, CBRE’s annual study found that retailer’s cross-border expansion into new markets declined by 2.9% last year from 2016 levels. That slight dip reflects the broader trend of retailers making deliberate, data-focused decisions on opening stores that fit best within their combined omnichannel networks of physical stores and online operations.
– Hong Kong remained the most popular market for new entry by foreign retailers for the third consecutive year, hosting 86 debuts by retailers new to the market last year. The rest of the top five were Dubai (59), Taipei (52), London (49) and Tokyo (46).
– Toronto was the most popular North American destination for new entry by foreign retailers last year, attracting 40 new entrants and ranking seventh globally.
– U.S. retailers remain the most active global expanders into foreign markets, with 19% of retailers expanding into new international markets last year doing so from the U.S.
– Overall, the U.S. attracted 32 international retailers making arrivals 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 (15), followed by Miami (10), Philadelphia (8), San Francisco (7) and San Diego (6).
For comments, questions or concerns, please contact Dennis Kaiser
