Retailers name Germany as top European hot spot for 2010 expansion

01.12.09

The effects of the recent turbulence in the financial markets and subsequent global recession continue to ripple through the economies of Europe, the Middle East and Africa. Much attention has been focussed on the retail sector – and for good reason. Far from "battening down the hatches", many retailers are optimistic about the future. Although cautious with their approach they continue to develop their networks and expand into new markets. Whilst for some expanding into new markets represents a fine-tuning of an already mature sales network, others are looking to pioneer their way into new markets. A clear, and entirely understandable, "flight to quality" is taking place. Some retailers are taking the opposite approach, targeting new and previously untried markets in the search for competitive advantage. For some, "first to market" remains the over-riding objective and - with current economic conditions reducing the level of competition – the next couple of years are seen as a time of opportunity. Of the 220 retailers analysed, 200 are looking to acquire additional stores by the end of 2010. Western European countries dominated the survey’s ranking of the top 10 "hot spots" for expansion retail networks. Germany has emerged as the number one target destination for retailers looking to expand their international presence in the Europe, Middle East and Africa (EMEA) region in 2010. 47% of retailers surveyed as part of the research are targeting Germany for future expansion. The most popular are "Big Five" European countries. It’s Germany, followed by France, Spain, Poland and Italy. Poland, Romania and Russia were the exception to the rule, representing Central and Eastern Europe in the top 10 and were numbered 4, 8 and 10 respectively.

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