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EWRetail Market Study2013

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145 GLOBAL CITIES COVERED

500 SHOPPING CENTERS 750 HIGH STREETS972 PAGES

1‘000 RETAILERS

2‘000 STORE OPENINGS

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Previewlocationgroup research | Retail Market Study 2013

Foreword Page 9

I 01 OVERVIEW EUROPE Page 1002 SWITZERLAND Page 1403 Zurich Page 1604 Geneva Page 2805 Basel Page 3306 Bern Page 3607 Lausanne Page 3808 Winterthur Page 4009 St. Gallen Page 4310 Lucerne Page 4611 Lugano 012 Swiss Department Stores Page 5213 Swiss Shopping Malls Page 5614 Swiss Retail Real Estate Investments Page 6215 Swiss M&A Deals Page 6716 GERMANY Page 6917 Berlin Page 7118 Munich Page 8419 Hamburg Page 9120 Cologne Page 9621 Frankfurt Page 10122 Stuttgart Page 10823 Düsseldorf Page 11124 German Shopping Malls Page 11525 German Retail Real Estate Investments Page 11926 German M&A Deals Page 12427 Vienna & AUSTRIA Page 12728 Austrian Shopping Malls Page 13629 Paris Page 13830 London Page 16431 Dublin Page 19432 Edinburgh Page 19733 Brussels Page 20334 Antwerp Page 20835 Amsterdam Page 21336 Milan Page 22137 Rome Page 24038 OVERVIEW IBERIA Page 24639 Barcelona Page 25140 Madrid Page 26241 Lisbon Page 27042 NORTHERN EUROPE Page 27343 Copenhagen Page 27544 Oslo Page 28145 Stockholm Page 28446 Helsinki Page 289

Table of Contents

Reduktion_48 _Innenseiten.indd 3 29.01.2013 14:19:25

Preview locationgroup research | Retail Market Study 2013

47 OVERVIEW RUSSIA Page 29248 Moscow Page 29749 St. Petersburg Page 30350 EASTERN EUROPE Page 31051 Kiev Page 31152 Tallinn, Riga, Vilnius Page 31453 Warsaw Page 31954 Prague Page 32455 Budapest Page 32956 Bucharest Page 33357 Almaty & Baku Page 33858 Athens, Belgrade, Skopje, Zagreb Page 33459 EUROPEAN SHOPPING MALLS Page 35060 EUROPEAN RETAIL REAL ESTATE INVESTMENTS Page 358 II

61 OVERVIEW MIDDLE EAST Page 36662 Istanbul Page 36863 Tel Aviv Page 37664 Beirut Page 38065 Abu Dhabi Page 38466 Dubai Page 39467 Riyadh & Jeddah Page 41068 Kuwait Page 41769 Doha Page 42270 Amman Page 42571 Muscat Page 429 III

72 OVERVIEW INDIA Page 43073 Mumbai Page 43774 New Delhi Page 44375 OVERVIEW ASIA AND PACIFIC Page 44776 SPECIAL: TOP SHOPPING MALLS IN SE ASIA Page 45277 Hanoi Page 45478 Ho Chi Minh City Page 45979 Bangkok Page 46680 Kuala Lumpur Page 47281 Singapore Page 47882 Jakarta Page 49083 Manila Page 49484 OVERVIEW CHINA Page 50085 Beijing Page 51286 Shanghai Page 52487 Hong Kong Page 53888 Macau Page 54289 Chongqing Page 56690 Wuhan Page 57091 Chengdu Page 574



92 Xi´an Page 57993 Shenyang Page 58394 Harbin Page 58695 Nanjing Page 58996 Guangzhou Page 59397 Seoul Page 59698 Taipei Page 60399 Tokyo Page 611100 Sydney Page 624 IV

101 OVERVIEW NORTH AMERICA Page 630102 Vancouver Page 634103 Toronto Page 639104 New York Page 645105 Boston Page 687106 Chicago Page 690107 Washington Page 670108 Atlanta 01109 Miami Page 704110 Houston Page 714111 Dallas Page 718112 Denver Page 727113 Las Vegas Page 728114 San Francisco Page 738115 Los Angeles Page 746116 San Diego Page 758 V

117 OVERVIEW LATIN AMERICA Page 762118 Mexico City Page 768119 Panama City Page 773120 Bogota Page 776121 Lima Page 781122 Santiago Page 786123 Sao Paulo Page 790124 Rio de Janeiro Page 803125 Buenos Aires Page 809 VI

126 OVERVIEW AFRICA Page 812127 Casablanca Page 816128 Marrakesh Page 820129 Algiers Page 823130 Cairo Page 825131 Accra Page 828132 Lagos Page 832133 Johannesburg Page 836134 Cape Town Page 839



VII

135 SPECIAL: HOLIDAY RESORTS 44 Monte Carlo Page 844 Nice Page 845 Cannes Page 847 Saint-Tropez Page 849 Chamonix Page 853 Courchevel Page 853 Cortina d‘Ampezzo Page 855 Porto Cervo Page 857 Forte dei Marmi Page 857 Capri Page 858 St. Moritz Page 858 Gstaad Page 860 Andermatt Page 862 Zermatt Page 863 Crans-Montana Page 863 Kitzbühel Page 863 Sylt Page 865 Iberian Islands Page 865 Aspen Page 866 East Hamptons Page 867136 SPECIAL: EXPANSION PLANS Page 867137 M&A DEALS WORLDWIDE Page 906138 SHOPPING CENTERS WORLDWIDE Page 930139 INTERNATIONAL RETAIL ESTATE INVESTMENTS Page 934140 MOST EXPENSIVE RETAIL LOCATIONS WORLDWIDE Page 938

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141 PRICES AND WAGES Page 940142 RETAIL & LUXURY BRANDS Page 943143 SOURCES Page 945145 THE OUTLOOK 2013 Page 976



Publisher:LOCATION GROUP AG, Rennweg 58, CH-8001 ZürichT +41 (0)44 225 95 00, F +41 (0)44 225 95 01Email: [email protected], Internet: www.location.ch

LOCATION RETAIL, www.locationretail.comLOCATION LUXURY, www.locationluxury.comLOCATION INVESTMENT, www.locationinvestment.comeLOCATIONS.COM, www.elocations.com

Layout:Gravis, Konstanz, www.gravis-bodensee.dePhotos:Location Group, HanoiFront cover picture:Skyline, New York Back cover picture: World Trade, Center, New YorkPrint & Editorial:raff media group, www.raffmediagroup.dePress date:14th January 2013Price:The purchase price is 750 CHF (incl. VAT)Orders:By fax +41 (0)44 225 95 01, by e-mail at [email protected] or www.retail-study.com

Disclaimer:This document was compiled by the LOCATION GROUP Research Team and is not the result of our location or financial analyses. This publication is for information purposes only and was compiled on the basis of accessible information. The ideas and opinions expressed herein are those of the LOCATION GROUP Re search Team at the time of printing (and are subject to change without noti-ce). This publi cation may be quoted provided it is cited as a source. We ask for a sample copy.

Copyright © 2013:LOCATION GROUP AG and/or its affiliates – all rights reserved. The information contained in this publication is based on accessible sources that we consider to be reliable. We give no guarantee for the correctness and completeness of this information. We accept no liability for the use of this report or its contents.

Visit us on the Internet at: www.retail-study.com or www.location.ch



LOCATION GROUP specialises in Retail Location Consulting and Development as well as Brokerage and as an expert partner of pro-perty owners and retailers and has been doing business success-fully for seven years now.

The Location Group Team hopes that you will find this year’s report informative and enjoyable again.

Marc-Christian RiebeCEO, President and Founder

In 2012, LOCATION GROUP produced the First Worldwide Retail Market Study with valuable information concerning the key trends and develop ments in the worldwide retail sector.

Last years’ Retail Market Study had a size of 500 pages with news about the latest and up-coming shop-openings of approximately 80 cities worldwide. This year we doubled the number of pages as the Market Study 2013 has around 1,000 pages with 145 cities worldwide. The retail market is extremely large and we could have easily written at least 2,000 pages. However, we tried to focus to keep the balance between covering the most important changes and a size that is manageable for the reader. Therefore, please do not wonder if the one or other news is missing. There was simply not enough time and space to cover everything.

For this second report of its kind, the Location Group Team again trained its sights on the choicest international locations, scouted the best frequented retail loca tions and shopping malls worldwi-de. The enormous positive feedback and numerous requests we received on the 2012 report, prompted us to extend our study to 145 inter national cities and holiday resorts that are in the forefront of fashion and design.

The continuing turbulence in the world’s financial markets, as well as growing sovereign debt in a number of states, is having a detri-mental impact on the retail sector, among others. Moreover, globa-lisation in the guise of new and inventive retail formats from the US and Asia is placing increasing pressure on European retailers. The cities that are currently most promising for expansion are London, Paris, Istanbul, Milan, Amsterdam, Munich, Berlin and last but not least Zurich. For example in Zurich last year there were nine chan-ges alone at Bahnhofstrasse, compared to five newcomers in the average for the last ten years before.

The expansion of European luxury retailers into Asian and South American markets is still going strong – an evolution driven by ri-sing purchasing power, exponential economic growth, and subs-tantial revenue and profit growth.

Hence, the appetite of international retail chains for prime retail locations remains as voracious as ever. Top-drawer store locations are a vanishing species and are much sought-after by many retai-lers who need these venues to meet their international expansion goals. This situation is pushing rents higher in many cities, much to the delight of owners and developers of prime retail locations.

Foreword



ZURICH is not only Switzerland’s largest city (380,000 inhabitants live in Zurich city and 1.2 million in greater Zurich) but also the country’s most important financial and business centre. A new high of 13,850 Swiss francs per square metre and a record of 9 tenancy changes have been reachedThe most recent rental for 13,850 Swiss francs per square met-re emphasizes the fact that the sales potential of Bahnhofstras-se – which ranges upward from 100,000 Swiss francs to 225,000 Swiss francs per square metre – is attracting a growing number of multinational retail chains. A UBS market survey of prices and salaries, as well as similar surveys by Time Magazine, GfK, Bloom-berg, Forbes and many others, show that Zurich offers the world’s top purchasing power and net income, and that Zurichers have the world’s highest disposable income. Jewellers and watch retailers in particular are well able to afford store rents on the city’s main shopping street Bahnhofstrasse since Zurich counts as one of the world’s top three retail locations.

Zurich’s 1.4 kilometre long shopping street Bahnhofstrasse is home to 140 stores with an 89 % multibranch ratio, which means that only 11 % of the street’s retail stores are leased by indepen-

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Zurich .

Bahnhofstrasse, Zurich

dent businesses. Each day, Bahnhofstrasse is frequented by more than 100,000 persons, and every day more than 400,000 travellers pass through Zurich’s main train station (Hauptbahnhof), which is one of the world’s most frequented train stations with more than 2,915 trains running daily. On completion of the ‘Durchmesserlinie’ line to Oerlikon in June 2014 and with the underground train sta-tion ‘Löwenstrasse’ in operation, it is expected that Zurich’s main train station will be frequented by more than 500,000 people daily. The train station ‘Löwenstrasse’ will also be home to 37 new stores across 2,800 square metres of retail space. Swiss Life buys Café Balthasar’s lease Two traditional businesses across from Hotel St. Gotthard closed their doors in January 2011: the shoe store Pasito and the adjoi-ning Café Balthazar. Pasito had been at its Bahnhofstrasse locati-on for 28 years, originally under the name Pedrino, and since 1999 with Pasito. The cafe had likewise been in the same location for around three decades. Pasito was unable to afford the rent, which had been approximately tripled, despite the fact that the landlord, Swiss Life, was somewhat accommodating concerning the price. The Café Balthazar lease was not up for renewal for another two years, but Swiss Life paid the cafe owner Michel Péclard key ...



GENEVA, the capital of Switzerland’s Geneva canton, has a high percentage of foreign residents (47.6 %) and is second only to Kreuzlingen in this regard. Numerous international organisations – such as the UN, CERN, IKRK, WHO, IAO, ISO, ITU, WIPO, WMO, WOSM, WTO and UNHCR – are headquartered in Geneva.

Geneva is also Switzerland’s second largest financial centre, after Zurich and followed by Lugano. For years now, Geneva, along with Zurich, has been ranked as one of the world’s cities with the high-est cost of living and the highest quality of life. The population of greater Geneva is 780,000.

The world’s most desirable jewellery store location With an extremely high retail sales to retail purchasing power ra-tio, the world’s highest purchasing power after Zurich, and a large contingent of consumers from Middle Eastern cultures, Geneva is an exceptionally appealing location for international jewellery and watch retailers. Geneva’s appeal is also attributable to its affini-ty for Anglo-Saxon culture and the city’s multicultural populati-on, thanks in large measure to the presence of UN and UNESCO offices. Annual rents go as high as 9,500 Swiss francs per square metre on Rue du Rhône and Rue du Marché. Rues Basses features

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Geneva.

Skyline, Geneva

some 80,000 passers-by daily. Rue du Rhône has 108 retail stores with an exceptionally high multibranch ratio of 94 %.

Consumer demand at record levels The watch and jewellery companies that have opted to open bran-ches in Geneva over the past years include the following at the top of Rue du Rhône: Boucheron, Audemars Piguet, Panerai, Graff Diamonds, Hublot, Dior Horlogerie, Tag Heuer, Montblanc and Fa-bergé.

Other stores of long standing, which are arrayed in the sequence in-dicated, include the following: Jaeger-LeCoultre, IWC Schaffhausen, Roger Dubois, Avakian, Chaumet, Bulgari, Blancpain, Breguet, Piaget, Jahan, Adler, Chopard, De Grisogono, Chatila, Omega, Van der Bau-wede, Cartier, Gübelin, Kerdanian, Les Ambassadeurs, Elie Chatila, Enigma, Benoît de Gorski, Patek Philippe, Bucherer, Vacheron Cons-tantin, Vhernier, Rolex, Tudor, Collet, Bijouterie Zbinden, Airbijoux and Bijoux Burma – to mention only the most prominent brands.

Zenith opened its second store in the world – in Geneva One year ago a boutique exclusively dedicated to watches from the Swiss watch manufacturer Zenith has opened on Rue du Rhône ...


Previewlocationgroup research | Retail Market Study 2013 11

BERLIN is the capital of Germany, and as a city-state is also a state that comprises the centre of Metropolitan region Berlin/Branden-burg (the Berlin-Brandenburg metropolitan area). With 3,45 million inhabitants, Berlin is Germany’s most populous city, and with sur-face area of 892 square kilometres the city is the largest in Germa-ny and the second largest in the EU. Berlin as best performing retail city and fashion metropolis in GermanyOver the past years Berlin has emerged as a fashion metropolis visited very frequently by local and European tourists. The capi-tal city has most notably got into the focus of international retail chains seeking to locate themselves in AAA locations. Tauentzien-strasse for example is dominated to 100% of such retail chains. Almost 50% of the stores opening in Berlin belong to fashion in-dustry.

The retail real estate market in AAA locations is booming and such locations are getting more and more contested. Kurfürstendamm, one of Berlin’s best shopping streets, has registered the highest number of shop openings in 2012 countrywide.

The prime rents of the most contested locations at Tauentzien-strasse turning into Kurfürstendamm amounts to 270 euro per

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Berlin .

Skyline, Berlin

square metre. This peak rents are continuously inflated by new tenants, bidding higher rents in order to acquire retail spaces in these areas of the city. The highest rents at Friedrichstrasse adjust around 140 euro per square metre. The most established shopping streets in Berlin are Kurfürstendamm, Friedrichstrasse and Alex-anderplatz. Finally, Hackescher Markt as trendy retail area for lu-xury and exclusive brands from all over the world will become very important within the next years.

The project development of shopping centres are expected to be-come always more important in the coming years. Untill 2015, 11 new shopping centres are in the pipeline in Berlin. To the existing shopping centre retail space of 1,133,600 square metres, another 323,500 square metres will be added, which equals an amount of 28.5 %. Despite the rise in stock of retail space, AAA locations bet-ween Berlin west and Berlin east will be able to benefit of these developments, as customers from shopping centres will frequent these locations in order to reach the new shopping malls. Miu Miu, Zimmerli, Prada, openings in KaDeWe Department StorePrada Group is pursuing its expansion, with the opening of a new MiuMiu store in Berlin, the fourth in Germany (second in Berlin). The 120 square metre MiuMiu shop in shop at Berlin’s ...



Scarlett Johansson



VIENNA has a population of 1.7 million and is Austria’s most po-pulous city. The Vienna metropolitan area has around 2.4 million inhabitants, which is more than 25 % of the country’s total popula-tion. Vienna is the ninth most populous city in the EU.

Location Rents EUR / sqm / monthKohlmarkt 180-390Graben 180-290Kärntner Strasse 140-210Innere Mariahilfer Strasse 60-150Rotenturmstrasse 30-120Favoritenstrasse 25-60Neubaugasse 20-60Landstrasser Hauptstrasse 15-40Meidlinger Hauptstrasse 10-30Thaliastrasse 10-30

Rents Top 10 Shopping Streets, January 2013

Vienna to become the capital of luxury retailIn 2014, upon completion of construction, the historic center of the city will become a pedestrian area dominated by the major stores of luxury fashion brands worldwide.

René Benko creates “Golden Quarter” With his project „Golden Quarter“, Benko creates a new architectu-ral landmark in the center of Vienna. The 11,500 square meters of

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Vienna, Salzburg, Graz & Co.

1. District, Vienna

luxury retail space is close to the Kohlmarkt, situated in two former bank buildings. Emporio Armani opened its store in the Tuchlauben building on 500 square metres. At the end of November 2012, Louis Vuitton followed with a 1,400 square meter flagship store. Bambi-ni, a multi-label premium children’s fashion store,also opened at the end of the year. According to a spokesperson at Benko’s Signa Holding Brioni, Miu Miu and Etro will move in at the beginning of 2013.

Park Hyatt, a luxury hotel chain, will move to Austria’s famous „Am Hof“by the autumn of 2013. Along with a 1,500 square metre Prada flagship store, the retailers Church’s, Saint Laurent, Brunel-lo Cuccinelli, Roberto Cavalli, and 7 for all mankind also opened. The luxury area „Golden Quarter“ includes a total of 18 shops, and, with the exception of Prada und Louis Vuitton, all brands of these brands opened their first store in Vienna. The total amount inves-ted was not released by Signa.

Amicis’ elegant location in Tuchlauben, ViennaAmicis found an elegant location for its new flagship store on the Tuchlauben. Located at the number 14 house on Tuchlauben, the store offers famous labels such as Alexander Wang, Giambattista Valli, Chloé and Balmain.

Vivienne Westwood gets first Viennese boutiqueIconic punk designer, Vivienne Westwood, opened her first Austrian shop at Tuchlauben12 in Vienna’s first district. Fans of the British punk fashion designer are now able to buy Westwood‘s clothes ...



Bernard Arnault



PARIS is the capital of France and of the Île-de-France region. The Seine divides the city into a northern section (the right bank) and a southern section (the left bank). Paris has 2,2 million inhabitants, 10,3 million in its urban residential zone, and 12 million in the Paris metropolitan region. Paris, along with London and New York, is one of the world’s most important cities and is one of the world´s most beautiful metropolises.

Paris’s Avenue Champs-Elysées, which is one of the world’s most magnificent boulevards, is located in northwest Paris in the city’s 8th arrondissement. Both the Champs-Elysées and 8th arrondis-sement start at Guillaume Coustou’s, group of horse sculptures known as “chevaux de Marly”, just west of Place de la Concor-de. The 1.9 kilometre long and 70 metre wide boulevard ends at Place Charles de Gaulle, where the Arc de Triomphe is located. The Champs-Elysées comprises the middle section of the backbone of the unique axe historique (“historical axis”) – a line of monuments, buildings and thoroughfares that extends from the centre of Paris. The fashion metropolis’ top spotsParis has a lot of well-known boulevards and retail hot spots. The mostprominentonesinclude Champs-Elysées, Avenue Montaigne, Place Vendôme &Rue de la Paix, Rue du Fabourg, Boulevard Hu-assmann, Forum des Halle, Places des Victoires, the PrintepmsDe-partment Store and Galerie Lafayette.

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Paris.

Skyline Paris

Avenue Montaigne is the most prestigious fashion boulevard in Pa-ris. The shopping mile is located in the 8th District of Paris near the Seine, between Avenue George V and Champs-Elysées. On Paris’ finest shopping street one you can find many of the large and well-known fashion brands like Gucci, Prada, Chanel, Louis Vuittion, Va-lentino etc. Besides international retail brands it offers numerous luxury fashion stores, boutiques, restaurants and hotels. Avenue Montaigne is also famous for its high-end jewellers and its stores specializinging in high fashion . ..

Location Prime Rents / sqm / year in EuroChamps-Elysées 10,799Avenue George V 9,500Place Vendôme/ Rue de la Paix 9,500Avenue Montaigne 7,500Boulevard Haussmann 6,000Boulevard St Germain 5,250Rue de Rennes 4,433Rue des Francs Bourgeois /Rue des Rosiers 4,000Rue de Rivoli 3,677Boulevard de la Madeleine /Boulevard des Capucines 3,400Rue de Passy 3,250Avenue de l’Opéra 3,150Rue du Commerce 3,000



GREATER LONDON has 7.8 million inhabitants, 2.9 million of whom live in the 13 districts of Inner London. Thus London is the EU’s most popular city. The population of the Greater London Urban Area is around 14 million. London – a shopping destination par excellence London’s exclusive Mayfair district is vying to overtake Paris, Mi-lan, New York, and Tokyo as the place to go for luxury shopping. New West End Company (NWEC), which is the marketing agency for stores on Bond Street, Jermyn Street, Oxford Street, and Regent Street, rolled out its London Luxury campaign. Of the 600 retailers represented by NWEC, around 300 are luxury stores in the Bond Street area.

Bond Street, which is located in London’s Mayfair district, is one of the city’s priciest shopping streets. The street is named after Sir Thomas Bond, a developer who developed the district around Bond Street in the 17th century. The northern section of Bond Street, which runs into Oxford Street, is officially called New Bond Street, while the southern section, which runs into Piccadilly, is known as Old Bond Street, which is around half as long as New Bond Street. The section of New Bond Street adjoining Old Bond Street at the cross street Burlington Gardens is an around 656foot-long pedest-rian zone.

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London.

London at night

Change of retail real estate demands in LondonLondon’s Bond Street and Sloane Street have seen record levels of space change hands in 2012, as top global luxury brands continue to secure new stores or to increase the size of their existing stores. At present, demand on both streets outstrips supply by about 10 to one. As a result, many luxury brands now have to locate just off Bond Street and Sloane Street out of necessity.

Due to the level and quality of uptake, rental levels are now just less than 1,000 pounds on Bond Street with strong growth also re-ported on Sloane Street over the last 12 months. Over one-third of the space transacted on the two streets this year was taken by Ita-lian designers. Several of these brands increased the size of their stores. British high street stalwarts face competition from US newcomersHigh street stalwarts Next, Marks & Spencer and Debenhams may have to face off serious competition from US apparel retailers loo-king to the UK to reel in extra profits.

Analysts at Morgan Stanley said: “We have identified at least ten big US clothing retailers looking to use the UK as a bridgehead into Europe. We think this could profoundly change the competitive landscape“...



36

Milan.Italy’s second largest city, MILAN, has around 1.3 million inhabi-tants, around 4.8 million including the outlying areas, and around 7.5 million in the Grande Milano conurbation, making it by far the most populous city in Italy.

Milan is the heart of Italy when it comes to business, fashion, de-sign, and media, and is thus regarded as Italy’s “gateway to the world.” Milan is known for a number of things including its Gothic cathedral, its world famous La Scala Milan opera house, various art treasures including Leonardo da Vinci’s Last Supper, its exclu-sive fashion district, its cultural life, which sets the tone for all of Italy, its soccer teams AC Milan and Inter Milan, and for being home to Italy’s most renowned convention centre, Fiera Milano. A new fashion district planned for Milan A new fashion district in Milan’s Corso Como will host more than 50 shops, showrooms, restaurants, art galleries, cultural workshops, and it will feature more than 160,000 square metres of pedestrian areas. The new development takes shape in the Garibaldi area of Milan and the first phase, the extension of existing Corso Como, has already been completed and was presented to the media on September 17, 2012.

Galleria Vittorio Emanuele II on Piazza Duomo, Milan

Renzo Rosso’s Diesel and its other brands, along with Costume Na-tional, confirmed store openings in the new complex, where stores will be open in time for the 2013 edition Salonedel Mobile. Cover-ing a surface of 360,000 square metres, the new district of Corso Como, already named by many as ”the new Montenapoleone” of Milan, is the largest development in the history of the Italian me-tropolis.

New luxury openingsMajor international luxury brands have spent over 30 million Euros this year alone on new openings, enlargement, or refurbishment of their stores in Milan’s Via Montenapoleone. During the Milan Fa-shion Week (September 19 – 25), Cartier, Christian Dior (women’s store), Breguet, Bruno Magli (corner with Via Manzoni) and Burber-ry (taking over the space formerly occupied by Corneliani) inaugu-rated their flagship stores ...



Marise Østergaard & Christian Louboutin



39

Barcelona.BARCELONA is the capital of Catalonia and Spain’s second largest city. Barcelona has around 1.6 million inhabitants. In addition, Bar-celona is the 11th largest EU city and after Hamburg the second largest city that is not the capital of an EU member state. The po-pulation of the Àrea Metropolitana de Barcelona conurbation is 3.16 million, and the Barcelona metropolitan area has 4.86 million inhabitants.

Paseo de Gracia, which is 1.5 kilometres long, is a magnificent Barcelona boulevard and one of the city’s most renowned streets. Paseo de Gracia begins at the corner of Plaça de Catalunya and Ronda de Sant Pere at the edge of the city’s old town and ends near Plaça de Joan Carles I and Avinguda Diagonal. The city council will invest five million in the renovation of Paseo de Gracia The most luxurious shopping street of Barcelona will change soon. The city council will invest five million Euro to remodel and improve Paseo de Gracia. With this initiative, Barcelona wants to end the degradation that is experiencing the iconic avenue.The comprehensive improvement plan aims to regenerate public spaces, introducing a new lighting model and develop smart grids.

The renovation will take place in two phases. The first is the im-plementation of the works, which is already underway. The second will run until the end of this year, which is expected to end the re-generation pathway. The budget allocated by the city will be 5.15 million Euro.

Location Prime Rents /sqm/ year in EuroPaseo de Gracia 2,520Rambla Catalunya 960Avinguda Diagonal 420

The second largest European Apple store opened in Barcelona Apple opened the second biggest store in Europe at 1 Paseo de Gracia and a surprising logo has been discovered featuring an An-toni Gaudí Style -the iconic Barcelona architect, master of the Sa-grada Familia ...

Skyline Barcelona



MOSCOW is the capital of the Russian Federation and with 11.5 million inhabitants, it is the country’s most populous city, and with 14.6 million inhabitants in the Moscow conurbation, it is Europe’s most populous city. International retailers coming to MoscowMost stores in Moscow keep up with flagships in Paris, London, Milan, or New York. Major international brands like Louis Vuitton, Chanel, Prada, Ermenegildo Zegna, Tom Ford and Max Mara boast their latest international store concepts in Moscow, with some even ahead of other Western European locations.

Retail Real Estate Rents in Moscow range from 200 to 700 Euro per square metre on average. As a result, Moscow’s retail dyna-mics are changing very quickly and major luxury brands must deal with a major dilemma in terms of demand. Take the Crocus Mall for example, a shopping centre on the outskirts of Moscow, ver-sus new developments downtown Moscow or the new Moscow Gallery at the Moscow Hotel. While Crocus Mall attracts a growing number of wealthy living outside of Moscow, especially families, due to the complex offering of retail, food and entertainment, the Moscow Hotel, the brand new hotel in the heart of Moscow, facing the Kremlin and Bolshoy Theatre seems to be equally strategic for high-end brands, considering the hotel is dubbed to be opened as a Four Season Hotel.

Although the hotel has an uncertain opening date, because alrea-dy delayed more than 2 years from the initial announcements, the Moscow Hotel has already been leasing its retail space and seve-ral international luxury brands have already leased spaces in the

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Moscow .

Moscow by night

shopping gallery (Zilli, Cornelianietc). Brands such as Chanel have also confirmed future openings.

Moscow’s luxury retail real estate ”puzzle” is completed by the two historical shopping centres, the iconic GUM facing the Kremlin and the TSUM Department Store. The latter is controlled by Mercury Group, who works as a retailer and a real estate developer. GUM is Moscow’s largest and most renowned department store and one of the largest in the world. It is located in the heart of Moscow on the Red Square and stands across from the Lenin Mausoleum and the Kremlin. The flurry of new openings in GUM this spring is a tes-timony to the development of luxury retail in Russia, where retail decisions are based on a realistic long term business perspective. The maturity of the Russian retail market can also be seen in GUM, as Louis Vuitton’s recently expanded it store and Christian Dior re-located to a much larger space. Nowy Arbat is one of Moscow’s most popular shopping streetsIt is a main thoroughfare west of the Kremlin, and Arbat Street, which runs parallel to Nowy Arbat and is Moscow’s oldest pedest-rian zone. The city’s most prominent shopping street is Twerskaja Street. Many ritzy boutiques reside there. The street runs north from Red Square.

Prada opened its first flagship store in Moscow on the corner of Bolshaya Dmitrovka and Stoleshnikov Pereylok. It covers 1,700 square metres and has three floors. Ralph Lauren, Chanel, and Cartier also opened additional mono-brand stores in Moscow by the end of the year ...



The Russian-born developer told Reuters he is on track to get bank financing by January 2013 at the latest, even though the amount needed has jumped to 1.2 billion Euro from a previously targeted 700 million Euro. Getting more from the banks now would allow Is-kenderov, who has raised eyebrows with his sudden emergence ...

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EUROPEAN RETAIL REAL ESTATE INVESTMENTS.PARISQataris snap up Champs Elysées assetQatar Investment Authority is understood to be the buyer of the historic Lido asset at 116 Champs Elysées in Paris. Qatar‘s sove-reign wealth fund bought the property from French private equity group LBO France for over 100 million Euro in cash, well-informed market sources told PropertyEU. Developed in 1931, the art déco scheme comprises the Lido site, the famous French cabaret, an UGC cinema over 10,000 square metres as well as 5,000 square metres of offices.

Russian developer pursues 2.2 billion Euro luxury com-plex in Paris’ La DéfenseDesigned by British architect Norman Foster, the Hermitage Plaza Towers is a multi-use luxury complex developed by Russian born Emin Iskenderov in Paris’ La Défense area. ”The idea is to create a Manhattan in the French style in La Défense,” said Emin Isken-derov, head of the Hermitage Group, which is developing the tow-ers.

The project received planning permission in March and has since beaten back several legal challenges from local groups. Opponents criticise the project for its treatment of local residents. They say Iskenderov’s plan to replace the area’s moderately priced apart-ments with luxury ones is wrongheaded in a country that suffers from a housing shortage.

Champs Elysées, Paris

La Défense, Paris



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Beirut.

BEIRUT, the capital of Lebanon, is located on the Levant coast in the Eastern Mediterranean, in the centre of Lebanon from a north-south standpoint. Beirut is Lebanon’s economic and cultural cen-tre, and prior to the 1975–1991 Lebanese civil war was referred to as the “Paris of the Middle East”. The estimated population for Beirut is nearly 2 million.

Location Rents per sqm per year in EuroRue Verdun 1,103Kaslik 1,182ABC Centre Achrafieh 1,576Rue Hamra 670Beirut Central District 946

City Skyline, Beirut

Emporio Armani inaugurated a new store in BeirutThe Armani Group was pleased to unveil its new Emporio Armani store in the heart of Beirut and one of the trendiest shopping are-as of the city. The two-storey boutique, located on Allenby Street, brought the style of Armani to the vibrant city of Beirut as it conti-nued to blaze a trail as the fashion capital of the region.

Covering a total of 486 square metres, the interior of the store was carefully designed and created by Giorgio Armani and his team of architects in Milan. The store has a modern yet casual look, which mirrors the spirit of the Emporio Armani store in Paris Saint Ho-nore.

Roberto Cavalli unclosed his first restaurant in BeirutCavalli Caffè, a rejuvenated concept of the historic café Giacosa...



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Abu Dhabi.ABU DHABI is the capital city of the eponymous emirate in the UAE. The centre of Abu Dhabi, which has around 860,000 inhabitants, is located on a 70 square kilometre island in the mangrove belt. On the northwest side of the island facing the open sea is the Corni-che, where additional land was created in 2003.

In May 2008, Abu Dhabi’s Urban Planning Council issued the urban development plan for the run-up to 2030, after which time an inc-rease in the population of the envisaged Greater Abu Dhabi City to 3 million is planned. Like the neighbouring Emirate of Dubai, the capital city of the UAE is a shoppers’ paradise in a class of its own and offers numerous upscale shopping malls that sell just about anything a shopper’s heart could desire. Malls here spring up like mushrooms, and each contains hundreds of stores, including nu-merous prestigious retailers that offer bargain prices.

One of the largest of these new venues is Marina Mall, which has 400 stores spread across 100,000 square metres of space and more than a million visitors a year. The mall also features a specta-cular view of the Corniche.

Abu Dhabi provides a significant platform for growth, with incre-

asing demand from locals, ex-pats, and visitors who are shopping for stylish, good quality, value clothing. The Middle Eastern clothing market is already worth 90 billion pounds. Yas Mall to be completed by 2013Abu Dhabi’s retail mix is seeing major improvement, as new retail suppliers pour into the market. The ratio of luxury retail has incre-ased with the opening of new stores in the Etihad retail podium, the Galleria in Sowwah Square, and the retail centre in the Nation Towers.

The new Yas Mall is under-construction on Yas Island, and it is ex-pected to be completed by late 2013. More than 50% of its 235,000 available square metre retail space has already been leased.

‚Avenue at Etihad Towers‘ offers a luxurious shopping experienceIn the Etihad Towers in Abu Dhabi, a luxurious real-estate property developed by Sheikh Suroor Projects Department (SSPD), ‚Avenue at Etihad Towers‘ has opened. Located in the center of the UAE’s capital city, it is Abu Dhabi‘s first standalone high-end luxury shopping destination ...

Ferrari World, Abu Dhabi



Dolce & Gabbana Fashion Show



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Ho Chi Minh City.HO CHI MINH CITY (HCMC, formerly named Saigon), is the largest city in Vietnam. The metropolitan area consists of the Ho Chi Minh City metropolitan area and the surrounding towns. It is populated by more than 9 million people, making it the most populous met-ropolitan area in Vietnam and the coutnires of the former French Indochina.

The Greater Ho Chi Minh City Metropolitan Area spreads over an area of 30,000 square kilometres with an expected population of 20 million inhabitants by 2020. Vietnam among the fastest growing and most potential luxury markets Among the most dynamic luxury sectors in Vietnam in the past th-ree years, fashion definitively has seen the fastest growth. There are just 6 major distributors in this segment, but almost all of them have added at least one or two international fashion brands to their portfolio in the last 2 years. Among those brands are: Etro, Canali, Christian Louboutin, Valentino, Chanel, Hugo Boss, Coach, Loewe,

Skyline Ho Chi Minh City

Givenchy. Other brands have announced their entry in 2012, among them Ralph Lauren, Dior, ErmenegildoZegna and Bottega Veneta.

On the other side, jewellery is one of the sector which is least de-veloped and presents opportunities for retailer. Except Bulgari, Cartier, Chopard, IWC, Omega, Piaget and Rolex there is no inter-national jewellery brand on the market. The brands most active with regards to advertising activities is DAFC, distributor of Salva-tore Ferragamo, Burberry, Polo Ralph Lauren, Cartier, Chanel, Tumi, Bally, etc. Retail business in Hoh Chi Minh CityOne of Vietnam’s wealthiest local community lives in Ho Chi Minh City (Saigon). Ho Chi Minh City concentrates the majority of the major international luxury brand retail locations in Vietnam. Dong Khoi is the leading luxury high street, with the Gucci, Dior, Yves Saint Laurent, Prada and Louis Vuitton mono-brand stores. Gucci is operating two stores in Vietnam, one in Ho Chi Minh ...



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Singapore.SINGAPORE is Asia’s smallest nation with 4.8 million citizens. The major business and retail hub in Southeast Asia is one of the most preferred destinations for multinational corporations as well as global brands looking to expand into the region. The city-state is a hot magnet for expatriates and tourists, especially from Asian countries. Singapore as a hub to South East Asian retail marketFollowing the opening of two integrated resorts and casinos, na-mely Marina Bay Sands and Resorts World Sentosa, a record num-ber of 14.5 million tourists were estimated to visit the country in 2012, 10% more than in 2011. Tourism receipts are also expected to grow by 4-8 % to about 18-19 billion US Dollars in 2012.

The most popular enclave in the city state is the Orchard shopping belt and it will likely continue to serve as the city’s retail hub and tourist attraction. The famous street has undergone a makeover since 2009 with the addition of three new malls. Older establish-ments have also been or are in the process of being revamped. The street now increased the number of malls, sporting store frontages and giant displays, making for a more vibrant experience. Various well-known fashion brands and international retailers have alrea-dy set up their businesses there, and many global fashion labels are also reported to establish their flagship stores in the city in the near future.

Skyline, Singapore

Singapore’s wealthy spend more on luxuryWhile other Asian countries have seen a recent decline in luxury spending by the wealthy, affluent Singaporeans appear to be bu-cking the trend. A survey of over 20,000 of the well-heeled across 11regions in the country showed that purchases of designer goods by rich Singaporeans increased from 11 to 17%. Those surveyed come from households with an average monthly income of 5,300 US Dollars, or the top 20% of the population in terms of wealth.

Singapore, Malaysia, Indonesia and Australia are among the coun-tries where the well-to-do are not cutting back on luxury spending, according to the survey.

Almost ignoring the global financial crisis, the wealthy in Singapo-re are buying more luxury watches, with purchases up from 19 to 24% in 2012. Purchases of luxury branded goods worth over 1,000 US Dollars by Singaporeans in the same period also rose by 6%.

New lifestyle mall on WestgateConstruction had started on Westgate. A new 55,200 square metre lifestyle mall is set to be a landmark in Jurong, the largest town in the western part of Singapore.

Developers CapitaMall Trust, CapitaMalls Asia and CapitaLand held ground breaking ceremony on Jan 12th. The 1.2 billlion US ...



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Beijing.BEIJING, the capital city of China, was founded more than 3,000 years ago. Its name means “northern capital”, and it is governed by the central government. As a result, it is on a par with the country’s other administrative entities in this regard. Beijing has 17.6 million inhabitants, comprises a single conurbati-on, but with its predominantly rural settlement structure, it is more province-like. Sanlitun Sanlitun is now popular among retailers largely due to the success of Sanlitun Village whose low-rise architecture provides flagships for Adidas, Uniqlo, Apple, as well as upmarket brands Balenciaga, Moncler and Montblanc.

Wangfujing Wangfujing is Beijing’s unique pedestrian high street that attracts tourists from China and overseas as well as locals. Here establis-hed malls and street shops offer a range of brands from Burberry and Zegna to Apple and Gap. A range of major new brands are loo-king to enter the Wangfujing market which has very strong pedest-rian flow, however there is very limited available space

Xidan Xidan is a well known traditional city-level retail submarket which is particularly popular amongst the youth. Xidan currently has a

mix of shopping centres and department stores totalling around 400,000 square metres, but is best known for Joy City which houses an exciting range of brands including Apple, Gap and Zara. The retail landscape in Xidan area is poised to move up-scale with the completion in 2013 of Galeries Lafayette which is expected to bring some luxury elements to Xidan. CBD Beijing’s CBD area is the first landing place for many high end brands. The area has a full range of luxury brands including in high end developments such as Shin Kong Place, China World Trade Centre and Yintai Centre. Yansha Nearby Yansha area is surrounded by diplomatic compounds and high end residential developments. The area has both mid market brands as well as high end brands in City Mall. Zhongguancun Zhongguancun is focused on high tech business and is the location of several of Beijing’s major universities and research institutes. Currently there are a number of good mid-market shopping cen-tres including EC Mall and The Gate ...

Central Business District, Beijing



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Hong Kong.HONG KONG’s most densely populated district and the city’s cultu-ral centre is Kowloon peninsula to the south of the New Territories region. Hong Kong, which is spread across a peninsula and 262 is-lands at the mouth of the Pearl River, was a British crown colony and by treaty returned to China in 1997.

Hong Kong is China’s third most populous metropolitan region, and greater Hong Kong, with 16,000 inhabitants per square kilometre; it is the world’s most densely populated area after Monaco. Hong Kong’s population has increased by a factor of 12 over the past six decades, to 7 million in 2005. Hong Kong’s thriving retail marketNot only is Hong Kong is one of Asia’s most mature retail markets, but is also one of its most thriving. Thanks to stable tourism spen-ding, driven by low unemployment and strong wage growth, retail sales have continued to increase steadily. Heavily frequented by Mainland tourists, Hong Kong is attracting a big diversity of inter-national brands that see the market as a gateway to China and a platform for establishing their brand identity.

Hong Kong high street retail space has among the highest rents in the world due to sustained high demand and limited new supply. Much of the high street locations are occupied by luxury brands including watch and jewellery stores. Despite record high rents,

Skyline, Hong Kong

retailers are continuing to target core shopping centres and high street shops as their new locations and flagship stores.

Foreign companies face no restrictions when renting or purchasing property in Hong Kong, so both new retailers and investors must levy the advantages and costs of both options. One of the biggest obstacles facing tenants in Hong Kong are occupancy costs and supply constraints. While retailers are often willing to pay high rents, they have a difficult time finding suitable locations. It often takes retailers up to two years to locate, negotiate leasing terms and fit-out new premises.

Brand-crazy Chinese drive up retail rents in Hong Kong Soundwill Holdings was forced to sell many of its properties as it battled to survive Hong Kong‘s real estate crash in the late 1990s. Even after its stock plunged 99% and debt obligations loomed, it held on to a 40-storey tower on a tucked-away street that today is the second-most expensive retail strip in the world.

RUSSELL STREET in the CAUSEWAY BAY district trails only New York‘s Fifth Avenue in terms of average retail rents, fuelled by mainland Chinese shoppers seeking tax-free Gucci handbags and Rolex watches. Shares of Soundwill are up more than six fold ...



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Chongqing.Chongqing is a major city in Southwest China and one of the five national central cities in the People‘s Republic of China (PRC) The municipality has a population of 29 million people, although the urbanized area is estimated to have a population of 7 million.

Raffles City Chongqing breaks groundCapitaLand, CapitaMalls Asia, and Singbridge Holdings started construction works on Raffles City in Chongqing.

Among all of its investments in China, Raffles City Chongqing is CapitaLand‘s biggest single investment and the largest single in-vestment by any Singaporean firm in China. Including land cost, the total development value of the project is expected to be about 3.34 billion US Dollars.

Designed by architect Moshe Safdie, Raffles City Chongqing mea-sures more than 1.03 million square metres. It includes a shopping mall, high-end residences, office buildings, serviced residences, and a hotel.

Other than Raffles City in Chongqing, Chengdu, Shanghai and Bei-jing, CapitaLand has other Raffles City developments in Hangzhou, Shenzhen, and Shanghai; they are currently under development and the one in Ningbo opened on September 29th, 2012. Gucci opened Southwest China flagship in ChongqingThe mega-metropolis may have been in the news for political con-

Skyline, Chongqing

troversy and intrigue more often thanit has for business reasons over the past several months, but on June 18th, 2012, the massive Chinese municipality of Chongqing — larger than Taiwan and near-ly as populous as Canada — saw the opening of Gucci’s southwest China flagship. Covering 800 square metres and two floors, the new location at Golden Eagle Shopping Center stocks the full Guc-ci collection of leathergoods, footwear, apparel, accessories, and children’s clothing for the “Little Emperor.”

Three years in the making, according to Chongqing media, the new location is the centrepiece of the mall’s new section. With 15,000 square metres of interior space, the new seven-floor section at Golden Eagle includes a new MUJI location in the basement, a new Omega store, and the two-story Gucci flagship that sits on the ground floor. A number of restaurants, bars, and wine stores fill the upper floors. Located near Chongqing’s Maison Mode shop-ping center, where Louis Vuitton opened a sprawling flagship last summer, Golden Eagle is also situated near the famous Jiefang Bei Pedestrian Street, likely a motivation for Gucci to build its second Chongqing location (after Starlight Place) there.

IKEA to build largest western China flagship store in ChongqingIKEA will reportedly invest about 159 million US Dollars in a new project in Chongqing to build the company‘s largest flagship store in western China. The new IKEA store in Chongqing will have a total construction area of over 100,000 square metres and four floors ...



Jessica Minh Anh and Yu Wenxi



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Xi’an.XI’AN is the capital of the Shaanxi province, and a sub-provincial city in China. One of the oldest cities in China, with more than 3,100 years of history, the city was known as Chang’an before the Ming Dynasty. The area of Xi’an is 9,983 square kilometres and the popu-lation is 8.46 million.

Xi’an develops very quickly these years. The main industrial zones in Xi’an include Xi’an Economic and Technological Development Zone and Xi’an Hi-Tech Industries Development Zone. The city’s Muslim quarter, which is home to the Great Mosque of Xi’an is very well known in the foreign committees. Apart from the ancient buil-dings and places of interests there are also some modern shop-ping malls in Xi’an. Many world famous brands can also be found in Xi’an, such as Tiffany & Co, Louis Vuitton, Hermes, Guess, Chole, Timberlake and so on. The huge market of Xi’an gives people more opportunities to do business here. Top Italian jewellery brand Bulgari opened its first bou-tique On November 23rd, 2012, the top Italian jewellery brand Bulgari opened its first boutique in Xi‘an Business landmarks and also the largest store in International.

Uniqlo opened two stores in Xi’anThe Japanese clothing brand Uniqlo opened two new locations in

Skyline, Xi’an

Xi‘an, one at Kaiyuan Mall and one at the HNA Minsheng Depart-ment Store on Wulukou. The stores occupy 1,800 and 1,400 square metres of floor space respectively, and sell all the usual Uniqlo products.

Xi’an Saigao City Plaza to open in 2015 in Xi’anTaubman TCBL and Beijing Wangfujing Department Store Co., Ltd are teaming up for a joint venture that will own a majority stake and manage an upcoming retail development in Xi’an, China. The complex will be located in the Xi’an Saigao City Plaza, a mixed-use project that is currently being developed by Shaanxi Fuli Real Estate Development Co. Ltd.

Developer Shaanxi Fuli Real Estate will own the remaining shares of the shopping centre that has an opening date set for late 2015. The seven-level facility is the retail component of the Xi’an Saigao City Plaza, a sprawling mixed-use development which will addi-tionally include a five-star hotel, a Holiday Inn Express, a SOHO residential tower, two towers of serviced apartments and an office structure. The gross building area of the Saigao City Plaza, inclu-ding parking, is a whopping 550,000 square metres.

The shopping mall will occupy 140,000 square metres at the mixed-use project, offering up a gross leasable area of ...



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Guangzhou.

Guangzhou Skyline

La Perle, Guangzhou

Foreigners banned from owning Guangzhou shops in China Foreigners - including residents of Hong Kong and Macao - have been banned from investing in retail properties in Guangzhou. A ban on foreign investment was implemented on March 1 st 2012 against a background of a thriving local economy and rising retail sales.

While municipal governments in China welcome investments as a revenue source, the central government sees a need to put brakes on the upsurge in property investment. However, many doubted that the new regulations would have any substantial effect on the local property market as all the foreigners would be kept away from the retail market as well.

Foreign retail brands eye on China‘s Guangzhou The city of Guangzhou in China’s southern Guangdong Province came under the limelight again due to its great consumer poten-tial and strong growth drivers in its retail market, which impelled foreign retail brands to change their strategies and seek better de-velopment in the region.

Maxvalu, a high-end supermarket brand under Aeon, opened its first store in late 2012. Galeries Lafayette, which unsuccessfully attempted to the market entry in Beijing 15 years ago, planes to come to Guangzhou for its second location in China.

Industry analysts believe that time is mature for foreign brands to enter Guangzhou after two years since it hosted the 16th Asian Ga-mes. Meanwhile, local stores have begun to adapt themselves into the new business environment by starting to open low-end store formats and offer traditional clothing products.

Apple comes to GuangzhouNot to be left out we move yet again back to Guangdong. It was mentioned previous that Guangzhou would be blessed with a mid-size store in the new Grand City Plaza area, located in Tianhe dis-trict.

This is an area rich with technical companies, gadget shops of all stripes and a really great night scene, with many night clubs. Although renovations have not been completed our contacts have told us that an Apple store will be moving into the Grand City Plaza area as an anchor store after renovations have completed. Rent has not been negotiated ...



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Seoul.SEOUL, officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million inhabitants, it is the largest city proper in the OECD deve-loped world.

The Seoul National Capital Area is the world‘s second largest me-tropolitan area with over 25 million inhabitants, which includes the surrounding Incheon metropolis and Gyeonggi province. Over half of South Korea‘s population lives in the Seoul National Capital Area, and nearly a quarter in Seoul itself, making it the country‘s foremost economic, political, and cultural centre. Retail Market in SeoulSeoul is the driving force of the Korean economy with the majority of the wealth centered in the city and is home to global companies such as Samsung, Hyundai and LG. The capital city of South Ko-rea can be seenas entry point for all international retailers such as Uniqlo, Zara, H&M, Louis Vuitton, Gucci, Prada, Tom Ford, Ted Baker and Burberry.

The luxury market has grown significantly in the last year. Mainly tourists from China and Japan are increasingly visiting Seoul, ma-king shopping trips in order to purchase international fashion and cosmetic products.

Skyline, Seoul

The demand for international brands is huge and the highly fashion conscious urban dwellers are obsessed with brands and the status boost that comes with it. As the majority of brands enter the mar-ket through Seoul, what is perceived as trendy product will quickly spread to the rest of the country and brands use the Seoul base as a springboard to expand into the other major cities.

Top SpotsThe largest market in South Korea, the Dongdaemun Market, is lo-cated in Seoul. Myeongdong is a shopping and entertainment area in downtown Seoul with mid- to high-end stores, fashion boutiques and international brand outlets. The nearby Namdaemun Market, named after the Namdaemun Gate, is the oldest continually run-ning market in Seoul. Sinchon is a shopping area that caters main-ly to a younger and university student crowd.

MYEONGDONG Myeongdong is the busiest shopping area in the country and is effectively anchored by two enormous department stores offe-ring luxury and mid priced retailers. Tourists, office workers and residents fill the pedestrianized streets surrounding the depart-ment stores which are the launching ground for most international brands and their flagship stores. As well as a huge amount of cos-metic stores catering to the tourists, brands such as H&M ...



Janet Lee



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Sydney.SYDNEY, the capital city of New South Wales is Australia’s largest city with 3.6 million inhabitants. The greater Sydney area has 4.1 million inhabitants. Although people sometimes assume that Syd-ney is the capital of Australia, this distinction in fact belongs to Canberra.

Sydney’s main shopping district, which is bounded by Elizabeth, King, George and Park Streets, comprises the Pitt Street Mall pe-destrian zone, as well as restored buildings such as Queen Victoria Building, a magnificently renovated former market hall that reo-pened in 1986 as a shopping complex containing myriad fashion and antique shops. Located in downtown Sydney, Myers on George Street is a steel and glass department store containing a mall.

Another important shopping venue on George Street is the magni-ficent 19th-century Strand Arcade, which features abundant glass and embellishments. Argyle Stores mall on Argyle Street is home to numerous boutiques in a 19th-century building. David Jones is Sydney’s classic department store and has branch on Elizabeth Street and Market Street (corner of Castlereagh Street). It has a large selection of apparel, as well as a floor devoted to Australian and international designer fashions. Luxury retail booming in Sydney CBDThe opening of Breitling Replica Watches, luxury brand Burberry‘s flagship store in Sydney‘s CBD has marked a trend – call it a fashi-on – for bigger, more lavish and, of course, more expensive bou-tiques in the booming top end of the retail market.

Burberry’s new 820 square metres flagship store quietly opened for business on a weekend of August and already trade has been brisk. The new store at 343 George Street is three times the size

Skyline, Sydney

of the brand’s previous store and stocks the complete Burberry range.

The Burberry boutique is part of a boom in luxury store openings in Sydney in year 2012 that has included the first Bottega Veneta store in Australia in the Westfield Sydney development, which also houses new stores by Diane von Furstenberg, Hugo Boss, TAG Heu-er and Salvatore Ferragamo.

In July 2012, Prada opened a flagship store at the entrance to the Westfield complex, which will be flanked by Prada’s sister brand Miu Miu.

The luxury store openings are a sign of growing confidence in the top end of the retail market. The luxury store openings are further evidence of significant market Replica Ulysse Nardin Watches segmentation in the retail sector. While the middle and lower ends of the market have been hit by rising fuel prices and interest rates and a mood of uncertainty, high-end is booming.

In contrast to retailers such as the Colorado Group in Australia, which was placed in voluntary administration, American Apparel in the US, which is on the brink of bankruptcy, and Swedish retailer H&M, which reported a 30 % drop in profits for the first quarter, luxury is booming.

Outlook on retail property in AustraliaInstitutional investors have reentered the market with freestan-ding assets and shopping centres high on their investment lists. Furthermore, local conditions have caught the attention of inter-national investors, as good quality; tightly held assets have been available ...



Jessica Simpson



NEW YORK has a population of 8.1 million inhabitants distributed over a land area of just 305 square miles (790 square kilometres). The New York City Metropolitan Area‘s population is the United States‘ largest, estimated at 18.9 million people distributed over 6,720 square miles (17,400 square kilometres), and is also part of the most populous combined statistical area in the United States, containing 22.2 million people.

Rents growing on Madison and Fifth Avenue The market for Manhattan retail space had tightened in the most prominent shopping corridors with asking rents on Madison Ave-nue and Fifth Avenue seeing significant increases, according to The Real Estate Board of New York‘s (REBNY‘s) Spring 2012 Retail Report.

The top five increasing prime shopping corridors this report period were:

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New York.

Manhatten, New York

1) Fifth Avenue between 42nd and 49th streets with asking rents surging 75% compared to spring of last year.

2) Madison Avenue between 57th and 72nd streets with asking rents up 31% to 1,203 Dollars since spring of last year.

3) A tie between East 86th Street between Lexington and Second avenues where, with few listings, asking rents were driven up 23% to 410 Dollars per square foot since last year, and Herald Square on West 34th Street between Fifth and Seventh avenues, with asking rents also increasing 23% to 558 Dollars per square foot.

4) Upper Fifth Avenue between 49th and 59th streets saw asking rents up 22% to 2,750 US Dollars, again attributed to the lack of prime available space in that corridor.

5) In SoHo on Broadway between Houston and Broome streets - where only a few prime spaces are still available - asking rents were up 11% to 551 Dollars per square foot ...



Pamela Anderson in Dallas



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Houston.

In HOUSTON the famous expression “everything is bigger in Texas” really applies. Houston is the fifth-largest metropolitan area in the U.S. with over 6 million people. The city has a population of 2.1 mil-lion people and was founded in 1836 by real estate brokers, brot-hers John and Augustus Allen, when they purchased 6,642 acres of land near Buffalo Bayou and began developing it.

Shoppers are certainly spoiled in Houston, as there are more than 20 shopping centers located throughout the area; they are often situated near major highways for easy access. Michael Kors opens second store in Houston Michael Kors opened a second Houston-area location at Market Street in The Woodlands, Texas.

Market Street general manager Jill Liccioni said that the addition of Michael Kors was another step towards creating a fashion-for-ward shopping experience that simply could not be found anywhe-re else.

The first stand-alone Michael Kors retail shop in the Houston-area opened in 2007 in the Galleria. Houston‘s first stand-alone Apple store unveiledAlthough the store was originally supposed to open in Highland Village in January 2012, Apple rescheduled the date of the store’s grand opening to March 16th, 2012.

The store is Apple’s first Houston-area store that is not located in a mall. Apple’s six other Houston stores are in Memorial City Mall, the Galleria, Woodlands Mall, Baybrook Mall, First Colony Mall, and Willowbrook Mall.

H&M unveils two new locations H&M was proud to announce its continued expansion into Texas with the opening of its first ever stores in Houston. Opened in the spring of 2012, H&M debuted at the Baybrook Mall, one of the area’s most popular shopping and entertainment destinations ...

Houston Skyline



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Washington D.C..

The city of WASHINGTON D.C, the capital of United States of Ame-rica, is named after the first President of the United States of America, George Washington. The initials D.C. stand for District of Columbia. D.C had an estimated population of 618,000 in 2011 and is the 25th most populous area in the United States.

Montblanc brings first U.S. pop-up shop to the capital cityMontblanc opened its first U.S. pop-up shop during the Presiden-tial Inauguration week from January 18th to 22nd, 2013. The luxury brand partnered with the St. Regis Washington D.C. Hotel and publisher Thornwillow Press to collaborate on an in-lobby bou-tique that offers an array of Montblanc leather goods, cuff links, timepieces, and signature writing instruments. As a nod to Presi-dent Obama’s second inauguration, Montblanc will offer a colorful bound book of Obama’s first inaugural address.

Leica’s opening in the St. Regis HotelThe legendary German camera and sport optics brand announced the debut of its new retail concept in North America with the ope-

United States Capitol Building, Washington D.C.

ning of a Leica Store in Washington D.C. Located at 977 F Street in the heart of downtown D.C., the store features the entire Leica photography collection and a sport optics product portfolio. The grand opening was held on May 2nd, 2012.

Leica Stores complement an extensive dealer network and serve to further grow the brand in North America. Additional locations in the United States opened later in 2012 Leica with a store in New York’s SoHo and a Leica store in Miami.

T.J.Maxx opens 1000th U.S. store in Washington D.C.T.J. Maxx, one of the nation‘s largest off-price retailers operating in 48 states, achieved a major milestone in the brand‘s 35-year history with the opening of its 1,000th store located at 601 13th Street in downtown Washington, D.C. The store opening took place on April 25th, 2012.

At the new location and other T.J.Maxx stores throughout the coun-try, shoppers can find the same designer and brand name ...



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Denver.

DENVER, the capital of Colorado, is a consolidated city and county. The estimated population of Denver is 620,000 which ranks it as the 23rd most populous U.S. city. It serves as the financial, trans-portation, and distribution center of the Rocky Mountain region. TOP 5 SHOPPING MALLS IN DENVERCherry Creek MallCherry Creek boasts the crème de la crème of brand-name stores in Denver. Whether you‘re a Burberry babe or a Lacoste lad, Cherry Creek offers the widest selection of premium labels. Department store anchors include Macy‘s, Neiman Marcus, and Saks Fifth Ave-nue. The mall‘s movie theatre was recently renovated, and a Nord-strom store recently opened.

Park Meadows MallPark Meadows Mall was built to resemble a mountain lodge, with plenty of wood beams and open space. The mall includes special-ty stores such as The Buckle, which hems jeans purchased at the store free of charge. Department store anchors include Dillard‘s, JC Penney, Macy‘s, and Nordstrom. The food court offers a wide selec-tion of venders, and plenty of seating around a cozy fireplace.

Denver Skyline

Cherry Creek Mall, Denver

Flatiron CrossingLocated halfway between Denver and Boulder, Flatiron Crossing makes a convenient meeting point between the two cities. Depart-ment store anchors include Dillard‘s, Macy‘s, and Nordstrom. Other specialty stores include Coldwater Creek and Crate & Barrel ...



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Los Angeles.

LOS ANGELES (Spanish for “city of the angels”) or L.A. for short, is the largest city in California, located between the Pacific Ocean and the Los Angeles River.

With 3.8 million inhabitants, L.A. is the second largest city in the US after New York. The population of the Los Angeles conurbati-on is 11.8 million, the L.A. metropolitan just fewer than 13 million inhabitants and the greater Los Angeles area has a population of 17.8 million; these numbers make it the world’s 17th largest met-ropolitan area.

Beverly Hills, a city embedded in west L.A., has 35,000 inhabitants and a surface area of 14.7 square kilometres. The city is known for the numerous American actors, directors, and affluent residents who call L.A. home.

Rodeo Drive is a Beverly Hills street comprised of North and South Rodeo Drive with Wiltshire Boulevard dividing them. Rodeo Drive, which is 2 miles (3.2 kilometres) long, extends from Sunset Boule-vard in the north to South Beverly Drive in the south and is primari-ly known for its high concentration of international luxury retailers that sell high-priced goods.

Los Angeles

Rodeo Drive is also home to the world’s most expensive shopping malls, including The Rodeo Collection (421 North Rodeo Drive), whose stores, on five above and below ground levels, include Eres, Hervé Leger, La Perla, Stuart Weitzman, and various cosmetic-sur-gery clinics.

There is also Two Rodeo, which was built in the early 1990s. Bou-tiques from Versace, Porsche Design, Breguet, Georg Jensen, La-lique, Jimmy Choo, and Tiffany & Co. can be found there. With its fountains, Italian piazza, and Spanish staircase and balconies, Two Rodeo Drive (also known as Via Rodeo), is reminiscent of a cobb-lestone pedestrian shopping zone in Europe. Next door to Two Ro-deo on Wilshire Boulevard is the renowned Hotel Beverly Wilshire. Prada unveils a Miu Miu store in SaksItalian fashion label, Prada, which specializes in luxury goods for men and women, unveiled its Miu Miu boutique at the Saks Fifth Avenue store at 9600 Wilshire Boulevard. The Beverly Hills store features exclusive bags and a small leather goods collections de-signed by Architect Roberto Baciocchi.

The fashion label operates in 70 countries through 388 directly ...



Princess Charlene and Albert II, Prince of Monaco



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Mexico City.

MEXICO CITY has 8.8 million and the greater Mexico City area (Zona Metropolitana del Valle de México, or ZMVM) has a population of 20 million, thus making Mexico City the world’s largest metropo-litan area. Most of the city’s population growth is provoked by mi-gration, as Mexico City’s birth rate is only 1.7. Mexico City offers an immense and varied consumer retail market, with thousands of options for everything from the very basic foods to ultra high-end luxury goods. New modern retailers and many new shopping centresThere are hundreds of modern retail shops throughout the city. The-re are also a number of large shopping centres and malls, including the Santa Fé mall in the Santa Fé district with several department stores and over 300 retail stores, restaurants and cinemas.

Others include Plaza Universidad, Plaza Satélite, Galerías Coapa, Parque Delta, Parque Lindavista, Pabellón Polanco, Pabellón Bos-ques, Mundo E, Perinorte and Plaza Lindavista, with anchor stores such as El Palacio de Hierro, Liverpool, Sanborn‘s, Sears, and Fá-bricas de Francia.

Skyline, Mexico City

Avenida Presidente Masaryk in PolancoMost of the city‘s luxury boutiques are located on Avenida Presi-dente Masaryk in Polanco. Stand-alone shops include Louis Vuit-ton, Bulgari, Cartier, Chanel, Hermès, Frette, Ermenegildo Zegna, Etro, Brioni, Canali, Corneliani, Chopard, Gucci, Marc Jacobs, Tiffa-ny & Co. and Roberto Cavalli.

Other stores include European furniture retailers Roche-Bobois, Natuzzi and Kartell. On smaller side streets, one can find stores such as a luxury French book publisher Assouline, Adolfo Do-minguez and Mitchell Gold + Bob Williams.

Michael Kors launched two stores in Barbados and MexicoMichael Kors opened the doors of his lifestyle boutiques in Barba-dos and another one in Mexico in early 2012. The company laun-ched a 168 square metres store in the Limegrove Lifestyle Centre and a 190 square metres store in the Centro Comercial Angelópo-lis in Puebla, Mexico...



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São Paulo.

SÃO PAOLO is Brazil’s largest city and Latin America’s largest in-dustrial conurbation. Sao Paolo proper has a population of 10.7 million, and the greater Sao Paolo area has a population of 19.8 million inhabitants. This makes it one of the world’s largest cities and the most densely populated urban area in the Southern He-misphere. Depending on which statistics are applied, Sao Paolo is also the world’s fifth or sixth largest metropolitan area.

São Paolo - a shopping paradise and the best city to con-duct business in Latin America São Paulo is the most ethnically diverse city in the country and has Brazil’s highest GDP. It is considered to be the best Latin American city to do business in, the biggest financial centre in the country, and the business centre of the Mercosur Economy. Moreover, São Paulo is expected to become the 6th richest city in the world in 2025.

São Paulo’s Main Shopping CentresIguatemi Faria Lima is considered to be one of the most expen-sive shopping areas in the world. Among the more than 30 inter-national luxury brands there are Burberry, Emporio Armani, Hugo Boss, Chanel, Gucci, Kate Spade New York, Longchamp, Marc Ja-

São Paulo Skyline

cobs, Bottega Veneta, Christian Louboutin, Salvatore Ferragamo, Louis Vuitton, Ermenegildo Zegna, Max Mara, Tiffany & Co., and Swarovski.

JK Iguatemi Mall is the newest luxury mall in São Paulo. It offers Dolce&Gabbana’s, Goyard’s, Jaeger-LeCoultre’s, Lanvin’s, Miu Miu’s, Nicole Miller’s, Panerai’s, Sephora’s, Tod’s, TopShop/TopMan’s, Van Cleef & Arpels’, and Zara Home’s first Brazilian stores. More brands include Bang & Olufsen, Bottega Veneta, Burberry, Bvlgari, Carolina Herrera, Chanel, Christian Louboutin, Coach, Diane von Fürsten-berg, Ermenegildo Zegna, Gucci, Hugo Boss, Kate Spade New York, Longchamp, Prada, and Tory Burch.

Cidade Jardim Mall is one of the most luxurious commercial cen-ters of São Paulo. Its brands include Carolina Herrera, Chanel, Er-menegildo Zegna, Giorgio Armani, Hermès, Longchamp, Montblanc, Rolex, Salvatore Ferragamo, Tiffany & Co., Prada, Louis Vuitton, Jimmy Choo, Emilio Pucci, Cartier, Gucci and Canali. Fendi, Omega, Balmain, Miu Miu, Elie Saab, Valentino, Tod’s, Tag Heuer, and Dior.

Morumbi Shopping offers Calvin Klein, Lita Mortari, Montblanc, Hugo Boss, Oakley, Swarovski and many others...



Jennifer Lopez



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Marrakech.

The south-western Moroccan city of MARRAKECH with a popula-tion of 920,000 people, is known as the “pearl of the south” and is the capital of the eponymous province. Marrakech is a Berber word that is thought to mean “God’s coun-try”, although another explanation from the Tinfinagh Berber lan-guage is that it may mean (in French) terre de parcours or “land of pathways”.

Morocco sees hotel boomMarrakech has experienced a recent boom in hotel development, especially after the well-received and famous La Mamounia reo-pened in 2009.

Marrakech’s luxury options only continue to grow and tourism of-ficials say Marrakech is the most popular destination in Morocco. In 2010, the city had one third of all hotel beds in the country.

Officials claim that Morocco also plans to double the number of hotel rooms in the country by 2020. More than half of all properties that are now open fall into the four- or five-star category.

New Hotels coming soon in MarrakechPearl by Hivernage This 72-suite hotel, designed by Jacques Garcia completed in the autumn, is managed by the local group behind the Hivernage Hotel & Spa. It is located in the elegant, central suburb of Hivernage, and has a large Louis Vuitton shop next to its lobby.

The Great Getaway Marrakech Hotel & SpaAs its name suggests, this new 20-room property is out of town,

Skyline, Marrakech

15 minutes down the Route d‘Amizmiz. It has a lodge-style de-sign and safari-style tents, and will be ideal for design-conscious guests looking for a peaceful, away-from-it-all vibe. The hotel is set to open in 2013.

The Baglioni MarrakechThis 72-room hotel, alongside 15 private residences designed by Jade Jagger, is being built on a 34-acre site on the Route d‘Amizmiz. It is due to open in 2013, and will have a Six Senses spa. Morgans Hotel Group released second Delano branded hotel in MarrakechIn partnership with Moroccan entrepreneur Ahmed Bennani’s Hi-vernage Collection and Marbella Club Hotel Group, the 71-room lu-xury boutique Delano Marrakech is a self-contained luxury resort in the heart of the city. Located in the center of the Hivernage Dis-trict, Delano Marrakech is Morgans Hotel Group‘s second global outpost of its signature luxury brand, the first operating in South Beach, Miami. Luxury hotel Selman Marrakech in vibrant MedinaSituated five minutes away from Marrakech’s vibrant Medina, Sel-man Marrakech, a luxurious boutique hotel opened in spring. The Selman Marrakech offers a band of purebred Arabian horses and 56 couture rooms as well as 5 private riads designed by the French Jacques Garcia. A spa with 15 treatment rooms including an indoor and outdoor pool and hammam will most likely be as extravagant as the private collection of 16 Arabian horses available for guest to ride...



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Cape Town.

CAPE TOWN, South Africa’s third largest city after Johannesburg and Durban, extends over a 2,455 square metre area and has 3.4 million inhabitants. The city is named after the Cape of Good Hope, which is around 45 kilometres to the south and used to be an ext-remely hazardous area for ships voyaging to India.

South Africa City Location Rents per sqm per year in EuroCape Town V&A Waterfront 1,387Pretoria Menlyn Park 925Durban The Pavillion 520

Gap kicked off in South AfricOn March 20, 2012, the U.S. clothing chain unveiled its first store in South Africa, located in the swanky Sandton City mall in Cape Town. The city welcomed Gap’s second store in March, followed then by another one in Pretoria, the country‘s political capital, la-ter in 2012.

„South African is the natural next step for expanding our store footprint on the continent,“ said Stefan Laban, Gap‘s managing di-rector of strategic alliances.

The company first offered its namesake brand and Banana Repu-blic in South Africa through a wholesale agreement with domestic department store group Stuttafords, who would operate Gap‘s free-standing stores in the country.

Gap wasn’t the only clothing retailer moving into South Africa in recent years. Spain‘s Zara opened its first South Africa store at the end of 2011 in the same mall where Gap made its debut. Luxury retailers Gucci and Cartier also had boutiques in the mall. New Lindt Chocolate Studio & Boutique released in Cape TownOn the evening of Thursday 19 April 2012, the executive mayor, Al-derman Patricia De Lille officially opened the new Lindt Chocolate Studio & Boutique at the Cape Quarter Lifestyle Village. Descri-bed as the only chocolate store of its kind in Africa, the mayor put her hands and feet in chocolate cement on its ‚chocolate walk of fame‘...

Skyline, Cape Town



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SPECIAL: HOLIDAY RESORTS.

MONTE CARLORolex opens its first store on Côte d’AzurIn partnership with Zegg & Cerlati, Rolex has opened its first shop on the Côte d‘Azur by selecting home in Monaco. The opening in October of the Rolex boutique consolidated the close relationship between the manufacture of Swiss watches and Zegg & Cerlati. At same time it celebrates the passion that feed the two companies for the elegance, prestige and watchmaking excellence.

This new jewel of 70 square metres, located in the heart of the Principality, offers a wide range of Rolex watches - including pro-fessionals and classic models from the collection Oyster.

Chanel with a fine jewellery store in MonacoSince July 2012, Chanel Fine Jewellery can be found in Monaco. The 130 square metreboutique is located in the prestigious halls of the Casino, opposite the famous Café de Paris under the old open arcades. The store was inspired by the major places in Gabrielle Chanel’s life - like her residence on Faubourg Saint-Honoré or her apartment on rue Cambon. Lotus raises the style stakes At the end of May 2012, Monaco Grand Prix, the first Lotus Ori-ginals franchise store has opened near the Principality’s famous Monte Carlo Casino Square. Lotus Originals is the fashion arm of the legendary sports car and racing brand.

Skyline, Monte Carlo

Partner ForzaRossa Holding, official Lotus cars dealer since 2011, joins the Lotus family with the opening of the Monte Carlo store which carries the brand new Lotus Originals retail concept.

Lotus Originals can also be found at the company’s Hethel HQ and at Norwich City Football Club’s stadium, and they also openeda flagship store in the heart of London with 445 square metres of ...

Chanel Jewellery launch with Princess Caroline, Karl Lagerfeld and Ca-therine Delestienne



Like last year, 2013 will undoubtedly be chock-full of thrills and spills. What everyone still wants to know, though, is how consu mer spending will evolve against the backdrop of the Euro crisis. Will the demand for top-drawer locations, particularly on the part of international retailers, remain so high? Will the search for such lo-cations on the part of Forever 21, H&M, Inditex and Uniqlo continue apace? The determining factor for many trends is still likely to be whether or not the Euro can be saved. Retailers, at least in Germa-ny, are fairly optimistic. The general view appears to be that high employment will spur consumer spending, provided that sovereign debt is kept within reasonable bounds.

The prospects of a recession in Europe, sluggish growth in the US, and a steep downturn in China make the outlook for 2013 seem anything but rosy. This situation is very unlikely to change in the coming year, as the realisation dawns that the world economy is in danger.

Many of the Western countries are struggling to revive weak eco-nomies. Paris, Milan, London and New York are no longer the only dominant centres of global luxury spending. Increasingly, the ac-

tivity is shifting eastward, to booming cities like Seoul, Shanghai, Mumbai, and Hong Kong, whose glitzy malls rival Bond Street, the Champs Élysées, or Fifth Avenue in terms of high-end shopping op-portunities.

In 2013, Location Group plans to revolutionize the retail property market by introducing eLocations.com; the site will function as a web-based, worldwide retail property database. It will offer direct access to the international retail property market and support re-tailers in terms of on-site management and business expansion. It will also assist property holders and investors in their asset ma-nagement and help them to acquire property in prime locations like shopping malls or specialist shops. Market participants will be able to obtain direct access to exclusive information and benefit from tailored brokerage services.

The Location Group Team hopes that this year, as in the past, we have provided you with valuable insight into the retail sector and have perhaps planted the seed for an exciting new project or two. Feel free to contact us if you require any further information.

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THE OUTLOOK 2013.

LOCATION GROUP RESEARCH TEAM


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