Retail operators go east: Jones Lang LaSalle

The increasing saturation of retail space in Western Europe provides a strong incentive for retailers and investors to expand into Eastern markets, particularly India and China which have unconsolidated local retail markets but growing consumer populations. That is one of the key conclusions of part seven of Jones Lang LaSalle's Retail 2020 study; Going East.

The report examines the rapidly changing global retail landscape over the next 10 years, in particular the continuing move from both Western European owners and occupiers towards the relatively underdeveloped and rapidly growing consumer markets in the East.

Robert Bonwell, CEO EMEA Retail at Jones Lang LaSalle, said: 'China and India are set to experience continued economic growth over the next decade and the rising wage levels will take retail demand levels into a higher orbit. The growing middle classes in these countries love Western brands, particularly luxury ones and are increasingly able to afford them. This is a long-term trend that no retailer or shopping centre owner can afford to miss, especially as China and India are the two highest populated countries globally.'

James Dolphin, Head of pan-European Retail Agency at Jones Lang LaSalle, said: 'Whilst the European retail industry will funnel more resources into expanding across the Far East, there will also be moves closer to home. With stable governments, low debt levels and growing populations, the Nordic countries will prove attractive for expansive retailers, with many major international brands already formulating and working through a 'Nordic-wide' expansion strategy; whilst in Russia rising oil and gas prices will further increase consumer purchasing power and this should reap big rewards for new entrants by 2020.'