Rise of e-Commerce Has Changed the Use of Retail Space
HONG KONG -- (Marketwired) -- Leading global commercial real estate services firm Colliers International today released the highlights of its latest global retail report. A major theme is that luxury retail continues to show strong growth in the top global markets and prime cities in Asia.
One key factor driving luxury sales includes a rising consumer confidence level due in part to a fading memory of the recent global economic crisis. Another factor is due to the sizeable gain in income of the highest earners -- driving an increased propensity to spend.
"Our analysis reveals a retail market that is cautiously optimistic and steadily growing in many sectors despite some hiccups of caution due to threats to global economic growth and the shadow of e-commerce," said Anjee Solanki, National Director, Retail Services | USA, Colliers International.
Simon Lo, Executive Director of Research & Advisory, Asia at Colliers International commented that Asia, particularly China and India, are significantly impacted by the increased popularity of e-commerce. "Top end brands will continue to stay in core areas but mid-tier brands will be moving to decentralised sub-markets as the new supply of retail stocks in core districts of some cities are very limited," he said.
Other key findings include:
- Luxury retailers are in the sweet spot. Luxury retailers are benefitting from income gains among the top earners
- New supply is robust in developing markets. The global expansion of the workforce and the middle class is spurring a need for new supply.
- Optimism is tempered by threats to global economic growth and the specter of
e-commerce. E-commerce is affecting both traditional and luxury retailers across the globe
- Strong performance of high street markets and growing development in emerging markets. The generally positive outlook is underpinned by the economic recovery in the U.S. and strong job growth in many parts of the globe.
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