The retail world is becoming a border less
global marketplace,
according to Cushman & Wakefield's
Retail MarketView report,
released in Las Vegas, USA, recently.
Mature retail and gateway cities serve as
the foundation, while emerging markets
are the primary drivers of growth.
"There is a tremendous opportunity for
increases in personal spending among
the fast-growing middle class in emerging
markets, and it's creating a new population
of shoppers," said Glenn Rufrano,
President and Chief Executive Officer,
Cushman & Wakefield.
The prospects for economic growth in emerging markets, where
GDP growth is forecast to increase at a rate of 6.3 per cent in 2012,
compared to 2.1 per cent GDP growth forecasted for mature
economies, will drive the expansion of the middle class and increase
private consumption. Per capita income for emerging markets is
expected to increase significantly between now and 2020, with a
projected 200 per cent increase for India and 125 per cent increase
for China, compared to about 20 per cent for the UK and USA.
Emerging markets are also attracting attention from investors.
Globally, retail investment has recovered since reaching a bottom in
2009. While cap rates have remained largely flat for the past several
years in Europe and the Americas, rates in emerging Asian markets
declined significantly, reflecting the high desirability of the
region and the lack of investment properties. Cross-border investment
activity has also increased, up 25 per cent in 2011.
Retail investment continues to focus on gateway cities like Hong
Kong, London, New York City and Tokyo. Similarly, gateway cities
are commanding the highest retail rental rates.