London tops European retail destination index

London attracts the largest number of international retailers across Europe, followed by Paris and Moscow, according to Jones Lang LaSalle’s index of the top 10 most attractive European retail destinations. The index is based on an analysis of 150 leading international retailers within 55 European markets.

James Dolphin, head of pan-EMEA retail agency at JLL, noted that although the retail industry faces ‘huge headwinds’, retailer appetite for prime space across Europe remains strong and is pushing up rents. ‘Many top-tier retailers will accept flagship space in iconic locations and nothing less. This is maintaining or, in some instances, putting upward pressure on rents in super-prime locations, while more secondary locations are seeing higher vacancies and reduced demand for space,’ he said.

Dolphin said the polarisation between prime and secondary locations is being exacerbated by the constrained shopping centre development pipeline, particularly in more mature Western markets. ‘The supply of truly modern space that is suitable for top tier retailers remains tight in most markets. New city schemes that have opened, such as Westfield Stratford in London and Marmara Forum in Istanbul, have proved to be hugely attractive, both to new and existing brands, and consequently to the end consumer,’ he said.

The US emerges as the biggest exporter of retail formats to Europe, followed by the UK, Germany, Spain and France. US brands such as Forever 21, Hollister, Apple, Disney and Abercrombie & Fitch have propelled the Americans into pole position. At the same time, European retailers such as Desigual, Inditex, H&M, G-Star and Superdry have all been in expansive mode over the last 12 months.