American retailers are showing a voracious appetite for global real estate expansion as they build their footprint overseas.
The rapid expansion has a hit a new high with American retailers opening more stores abroad than retailers from any other country, findings from a new CBRE report say.
“I think it’s an indication that U.S. retailers are seeking growth, and one of the main drivers of growth is to expand into a channel that they’re not in today,” said Anthony Buono, chairman of CBRE’s global retail executive committee.
The report notes that American retailers grew at a faster pace abroad last year than in 2014, and the lead reportedly seems to be widening. The closest competitor to the U.S. is Italy, which expanded at a 14 percent rate and then the U.K., which saw an 11 percent growth, CNBC reported.
Some of the top markets, which have emerged as the hot favorite for American retailers, include Moscow, London, Dubai, United Arab Emirates, Beijing, Bucharest, Romania, and Doha, Qatar. Businesses in food and beverage are leading the pack, followed by luxury and then midrange fashion.
Internet, the report noted, emerged as the top factor fueling the growth of U.S. businesses abroad. “What retailers are seeing is that customers in those global markets are saying, ‘You have an Internet brand, you should be opening stores here.’ The Internet is an activator for global expansion,” Buono added.
And while American companies are rapidly investing and establishing their presence abroad, such is not the case with companies entering the U.S. market. The competitiveness and high costs associated with entering the market have proven to be a deterrent. The U.K.’s Pret A Manger on the restaurant business side is one of the few names that have found their way in and have managed to grow their business.