MAPIC: retailers look to Asia as European sales soften

Retailers are increasingly focusing on expansion in Asia as the economic environment worsens across Europe.

Whilst retail sales have turned negative in much of Europe, Asia continues to enjoy strong growth, with robust consumer demand sustained in a wide range of markets and more retailers turning their eyes eastwards as a result, according to a new report by Cushman & Wakefield.

The publication of the report on Wednesday coincides with the first day of the MAPIC retail real estate fair in Cannes.

Mark Burlton, head of EMEA cross-border retail at Cushman & Wakefield, said: 'As more and more Western economies have stagnated or worse, retailers have been seeking to expand into Asia and more specifically into China.'

China reported retail sales growth of 17.7% in September following a 17% gain in August, at a time of extreme uncertainty and volatility in world markets.

For China, the growth has been particularly evident at the luxury end of the market with retailers such as Burberry and Richemont disclosing the importance of China as a driver of recent growth while others such as Swatch, PPR and LVMH have all reported strong third quarter sales spurred by increased demand in Asia as a whole.