Thursday, May 26, 2016
Dubai: Build the malls and they will come — Dubai’s strategy is working to perfection being named fourth among the Top 15 “global retail cities” in a ranking put together by JLL, the realty consultancy. In fact, a similar strategy has also propelled the fortunes of Kuwait City (placed ninth), Abu Dhabi (11), Jeddah and Riyadh (both in the 12th spot.) London was at the top of the charts, followed by Hong Kong and Paris, while New York was fifth.
Global retailers are not looking at the here and now as they queue up to open outlets in Dubai. Their plans — and hopes — are built around two sets of numbers … and these are very much on the horizon.
“As Dubai looks to welcome 20 million visitors by 2020, retail will play a crucial role in drawing in visitors from all over the globe,” Andrew Williamson — Head of Retail, MENA for JLL, said in a statement on Wednesday. “Its position globally can only be enhanced given the high quality retail space on offer to the world’s best-known and most loved brands.”
If it’s tourism that lights up Dubai’s retail star, other factors come into play for the other Gulf states. The JLL report casts light on a pertinent one — “The domestic retail market in the Middle East is not as mature as other regions, allowing international brands to enter without too much competition from domestic brands.
“The markets each have large quantities of affordable retail space, supported by franchise structures, which present viable options for international retailers and reduce their operational risk at entry.”
As for the other regions, Asia-Pacific contributes 18 cities to the Top 50 spots, based on their “sheer market size”, while US cities make up a quarter. But there is only one city — New York — among the Top 15. Even then, the US has more retail space than any other country with 12.8 billion square feet.
“Structural change is sweeping the retail industry as technology and e-commerce platforms become more sophisticated; however, demand for the right physical space, in the right location, is stronger than ever,” stated James Brown, Director of Global Retail Research for JLL. “Borders are becoming less of an issue for retailers pursuing opportunities overseas and we’re seeing the global retail landscape shifting fast to accommodate the change.”
Staff Report
Gulf News 2016. All rights reserved.
