Germany will remain the most popular global market for retailers in 2015 due to the opportunity to target more than 30 large cities with high purchasing power, according to new research from CBRE.

Germany will remain the most popular global market for retailers in 2015 due to the opportunity to target more than 30 large cities with high purchasing power, according to new research from CBRE.

Despite the huge interest in the German market, retail rents in most markets have remained stable or have seen a slight increase, the research found.

CBRE’s How Active are Retailers Globally survey revealed that Germany has retained its number one position for the second consecutive year with 40% of retailers planning to open a store there in 2015. Germany is closely followed by the UK with 33% and France with 31% of retailers.

The UK also continues to be a popular target for overseas retailers as demand for store space remains resilient, especially in London. This is evident from the strong prevailing rental growth and high premiums, CBRE found.

In France, retailers are generally attracted to the ability to get critical mass quickly, and have focussed on Paris and the Paris region before expanding into other cities. Recent changes to Sunday trading days from five to 12 per year in some areas, and the creation of Zones Of International Tourism, which will allow Sunday opening all year round is further improving the attractiveness of France to retailers.

The survey also revealed that a large number of retailers (47%) view economic uncertainty and higher costs - largely due to increases in rental costs and lack of quality retail space - as the biggest concerns for 2015.

Peter Gold, head of cross-border retail at CBRE, commented: ‘Given the ongoing challenges retailers face from cost escalation, successful delivery of omni-channel, and changes in consumer behaviour, it is increasingly important for them to have a strong network of stores to effectively represent their brand. The cost to open a new store remains prohibitive and retailers now have to look beyond key areas to traditionally less premium sites.’

The physical store remains the destination of choice for consumers as retailers continue to open stores in diverse locations with 21% of retailers planning to open between one to five stores in the EMEA region by the end of the year. Large-scale expansion plans with retailers looking to open more than 40 stores has scaled back to 9% in 2015.