American retail brands to increase focus on Western and Southern Europe

Western and Southern Europe will become more attractive to North American brands seeking to expand internationally in 2009, according to new retail research from real estate advisor Jones Lang LaSalle.

'We forecast a range of retailers such as Forever 21, Anthropologie, Hollister and Crate & Barrel to take advantage of the favourable deals that will be available,' James Dolphin, head of pan-European Retail Agency at Jones Lang LaSalle.

'2009 is set to be a year of opportunity. Deals are likely to be very favourable for tenants even in prime locations, with the best lease terms available for the best brands with strong covenants,' Dolphin said. 'Although retailers’ confidence remains reasonably strong in the Central European markets, they will now be more selective in terms of prime high streets and projects in those countries with large development pipelines, prioritising quality in terms of location, concept and tenant mix.'

The report shows that Turkey and Russia emerged as the key target destinations for retailers expanding internationally in 2007 and 2008, Turkey accounted for 11.3% of the total cross border movements, whilst 10.6% of retailers entered Russia. Central and Eastern Europe dominated the ranking of most popular locations, accounting for the top five destinations. The UK was ranked at number seven and attracted 6.6% of international retailer movements.

Neville Moss, head of European Retail Research at Jones Lang LaSalle commented: 'Although the current economic slowdown has impacted upon demand, retailers are still showing an interest to enter Central and Eastern Europe, although many are now only considering franchise partners to minimise risk.'

Top 10 Cross Border Retailer destinations 2007-2008 ( Rank Country % of Total Cross-Border Retailer Destinations)

1 Turkey 11.3%
2 Russia 10.6%
3 Poland 8.9%
4 Romania 7.5%
5 Czech Republic 7.5%
6 Portugal 6.9%
7 UK 6.6%
8 Belgium 5.3%
9 Hungary 5.3%
10 Greece 5.1%
Other 25%