Dubai trumps New York, Tokyo in retail
Dubai has ranked among the top international cities luring international retailers, beating iconic destinations like New York and Tokyo, a new JLL report finds.
The JLL Destination Retail report, in which the findings were revealed, highlights the top 50 cities in mainstream, premium and luxury retailers’ expansions.
Dubai ranks fourth in retail internationally, after London, Hong Kong and Paris, respectively, but trumps New York, Shanghai, Singapore, Beijing, Kuwait City and Tokyo.
“Borders are becoming less of an issue for retailers pursuing opportunities overseas and we’re seeing the global retail landscape shifting fast to accommodate the change,” James Brown, director of Global Retail Research for JLL, said in a statement.
“Structural change is sweeping the retail industry, as technology and e-commerce platforms become more sophisticated; however, demand for the right physical space, in the right location, is stronger than ever,” he added.
In the Middle East, Dubai, Kuwait City, Abu Dhabi, Jeddah and Riyadh emerged as business and travel hubs. Their strong tourism offering also contributes to an increase in the flow of foreign investments, according to JLL’s insights, which means these cities are increasingly “catching the eye” of global retail brands.
These regional markets have large quantities of affordable retail space and the region’s domestic retail market is not as mature as other markets elsewhere. So, international brands can comfortably enter the market without much competition from domestic brands. All of these factors contribute to the rise of these cities as international retail hubs, says the study.