CBRE Research Publishes “How Active are Retailers in Asia Pacific?”

New Retailer Entrants in Asia Pacific

Record First Y-o-Y Decline Since 2012

Tokyo, September 14, 2017 - CBRE Research today published “How Active are Retailers in Asia Pacific?”; its annual report analysing retailer activity across the region and explaining strategies for future store openings.

In 2016 the total number of new retailer entrants* to Asia Pacific registered the first decline since CBRE Research began tracking activity in 2012. A total of 429 new retailers opened stores in the 25 Asia Pacific cities under survey in 2016, a fall of 16% y-o-y. The decline was primarily due to the slower pace of retailer expansion in Singapore and Taipei, which have both seen sluggish economic growth and weak domestic consumption demand.

*A new retailer entrant is classified as a retailer originating from a foreign market; new to the city; and opening a bricks-and-mortar store.

The F&B sector, particularly restaurants and confectionary/pastry shops, continued to drive retailer expansion in Asia Pacific in 2016, with F&B retailers accounting for around one-third of new retailer entrants over the course of the year. The growth of this sector continues to be supported by consumers’ tendency to eat out and landlords’ strategy of extending their F&B offering to enhance their retailtainment elements and defend their portfolios against e-commerce.

Cost escalation (67%) and unclear economic prospects (53%) remained retailers’ foremost concerns for the second consecutive year. Worries around costs came despite flat rental growth in most markets except for Hong Kong, which continued to experience a strong correction.

The full report can be downloaded from the CBRE website at 

http://www.cbre.co.jp/EN/research/Pages/Special-Reports-ViewPoints.aspx 

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Press Release
"How Active Are Retailers in Asia Pacific?"

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