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| Hong Kong leads the way as most attractive location for retailers to operate Retailers in Hong Kong enjoy the best conditions in the world in which to operate, benefitting from first rate infrastructure, superior business conditions and a strong economic climate, says Arcadis in its Retail Operation Index. Singapore and the United States occupy second and third place in the rankings, while ongoing economic uncertainty in the Eurozone is holding many European nations back. The index ranks 50 international markets according to the five key factors that retailers look to when choosing where to locate their stores; these include infrastructure quality, consumer demand and ease of establishing a business in the first instance. Overall, the mature Asian markets offer retailers the best conditions with Hong Kong, Singapore and Japan occupying three of the top five positions, places that reflect their burgeoning middle class and governmental willingness to encourage foreign investment. Furthermore, in environments such as these retailers are able to turn around struggling sales with greater ease, creating a more stable base for investment. Elsewhere, the UK and US perform strongly, providing retailers with a favourable regulatory environment and strong economic climate, despite their aging infrastructure which has the potential to impact future prospects. Meanwhile, of the Eurozone nations only Germany and the Netherlands feature in the top ten. It appears that ongoing uncertainty over the Euro may be continuing to impact retailers' operations right across the continent and could potentially dissuade investment in the longer term. Elsewhere, despite its economic superpower status, China ranks in 27th position, reflective of its lower ease of doing business rating and comparably poorer infrastructure. This is largely due to challenges associated with poorer infrastructure quality in lower-tier cities, as well as a tightening in regulations impacting those operating within the country. Nevertheless, China will surpass the United States as the world's largest retail market within the next three years and, for many, entering the Chinese market will remain a priority despite a recent slowdown in economic growth. Matt Fletcher, Global Head of Retail at Arcadis, commented: "For retailers with international aspirations, weighing up where, how and when to expand into a new region, country or city is critical if they are to stay ahead of the competition and meet their business objectives. On a global level, it is the Asian markets of Hong Kong and Singapore that are the stand-out places for retailers due, above all, to the quality of their transport infrastructure, ease of doing business and fewer restrictions on trade. However, increasing operating overheads such as high property costs and softening sales are currently having an impact on financial performance. "If a business is going to operate effectively and potentially flourish, it is vital that retailers do their homework. They need to consider data and insight on their prospective markets and consider the varying factors that can impact portfolio success. For instance, a market that performs well in terms of its business environment allows retailers to rectify struggling sales more easily. This will not only ensure risks are successfully mitigated and managed, but will also lead to higher returns from their investment." write your comments about the article :: © 2015 Construction News :: home page |