Monday, August 22, 2016

There’s More to Being a Global Retail Destination Than the Rent

Fifth Avenue shoppingWithin the real estate sector we tend to have a fascination with ranking retail locations based on rent values as, to a certain extent, the rent profile does reflect the attractiveness of that location to retailers and shoppers. However, relatively little attention is paid to understanding the fundamental drivers behind the aspiration of retail brands to have a presence in a particular city and location, and essentially their ability and willingness to pay the high rents.

For example, how do cities compare in terms of retail sales, tourist flows, tourist spend and, most importantly, profitability? The fundamental question is how appealing is a city/location as a place to shop as this will ultimately determine its attractiveness to retailers.. . . more

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