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Auckland

Aucklanders can look forward to world-class Christmas shopping

JLL releases Destination Retail report 2016


 

 

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inside retail shop small-min.jpgLouis Vuitton, Hugo Boss, Zara and H&M are among the top 10 retail brands in the world and by Christmas 2016, all of them will have outlets in Auckland. 

JLL’s Destination Retail report 2016 identifies the top 25 most expansive and connected global retailers. 

“If you look through the list of the top 25 retail brands, you’ll recognise almost all of them as having stores in Auckland,” JLL’s head of retail in New Zealand Chris Beasleigh says. “That wasn’t the case a couple of years ago.”​​

Tommy Hilfiger ranks number 1 with stores in 94 percent of the top 140 cities around the world. It hasn’t opened a store in New Zealand yet but has stores in Australia. 

Levi’s is number 2, with 2,800 stores in 92 percent of the top cities. It has three stores in New Zealand and a large network of resellers across Auckland. 

Nike is number 3, operating in 91 percent of the top global cities. It has half a dozen stores in New Zealand including a high-end store at Britomart. 

Hugo Boss is number 4. The German retailer has stores on Broadway in Newmarket and at 44 Queen Street. 

Zara is number 5. Its first New Zealand outlet is opening on October 6 in Sylvia Park. 

JLL Destination Retail 2016 -42 small-min.jpg 

How does Auckland compare to the top retail cities of the world? 

“Auckland’s retail scene has come such a long way in the last five years or so, but of course it still doesn’t compare to the great retail cities of the world, like London, Hong Kong, Paris, Dubai and New York. Auckland is number 129 in JLL’s Global Top 140 retail cities in terms of economic size. That number gets better when those cities are ranked by GDP per capita - Auckland is number 94. And when you look at the retail sales growth forecast over a five-year period, Auckland ranks at number 82,” Beasleigh says.  

“JLL's Global Cross Border Retailer Attractiveness Index 2016 is based on the number of international retailers present within a physical store in each market. When we rank cities based on their retailer attractiveness, we see Auckland is in 131st place, equal with Helsinki and Chennai,” Beasleigh says. 

When you compare international retail rents, Auckland is in 68th spot. Paris has the most expensive prime retail rents in the world at 18,000 Euros (NZD 27,937) per sqm per year for a prime spot on the Champs-Elysees. 

U.S. and European brands dominate.

While the top global brands are U.S.-based, JLL found that more than half of the top 27 retailers worldwide are of European origin. “European retailers continue to dominate the global landscape because the market is a combination of so many smaller countries. In order to grow, retailers must operate outside their boundaries,” Director of Global Retail Research for JLL James Brown says. “We also found that U.S. retailers tend to keep close to home despite their brand strength, but we expect them to bring the next wave of international expansion in order to grow. It’s just a matter of time before their store presence will outpace European retailers.”

Retailers new and old, mainstream and luxury are embracing global expansion as a way to grow revenues, but the objectives for new stores can go way beyond just sales generation, according to the report. 

“A new store opening is no longer about racking up sales, it can support a wider wholesale, franchise or online business and can be an offensive move to safeguard market share. Increased brand awareness in a given city can also lead to an uptick in online purchasing in the market,” Beasleigh says. 

During the next 10 years, JLL expects a significant change in the global retail landscape due to a fast growing middle class, new economic powerhouses, rising tourism and maturing markets. These factors will attract new ambitious retail brands into emerging cities, where the search for space will accelerate. Retailers who succeed in acquiring the right space in the right place and at the right time will benefit from successful, profitable growth.

JLL’s new report, Destination Retail 2016, examines the presence of 240 international retail brands across 140 retail cities, giving insights for international retail expansion. The 140 cities make up 36 percent of the world’s GDP, 13 percent of the global population and 33 percent of total consumer spending. In today’s increasingly global retail market, international expansion is becoming a focus for JLL retail clients, as they seek sustainable growth.  To learn more, register to receive JLL’s full Destination Global Report.


JLL’s retail experts partner with retailers, investors and owner/operators with an extensive team of dedicated experts around the world. They understand the inherent complexities and variability associated with both the retail industry and increasingly complex capital markets. JLL’s specialists are recognised for their independent and expert advice to clients, backed by industry-leading research that delivers maximum value. With leading in-depth knowledge of the local, regional and global market dynamics, JLL aims to truly partner with its clients for the entire lifecycle of an asset or lease. Its experts deliver clients maximum value to support and shape their investment, site selection and brand strategies. In New Zealand, JLL has a team of retail specialists in Auckland, Wellington and Christchurch. ​

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