November/December  2009 VOL. 2

Foreign Exchange

International retailers believe the market has bottomed out and that 2010 will see a significant recovery in certain retail sectors and territories, according to new research from CB Richard Ellis, the Wisconsin School of Business and France’s HEC Business School. Central Europe, Germany and France head the list of target markets for 200 international retailers.

The CBRE research notes that retailers who have weathered the economic storm the best are in the fast-food, men’s apparel and mid-price restaurant sectors. Growth sectors include baby and children’s concepts, aspirational and international brands.

“There is a future,” says Chris Igwe, head of retail and senior director of European Retail Leasing, EMEA for CBRE. “There is hope. What’s been interesting here in Cannes is the mood, which is clearly positive.” He advises developers that understanding retailers’ needs is increasingly important. “In our industry, a lot has been said about ‘build it and they will come.’ You can’t just build anything today because nobody will necessarily buy it up. We need to dialogue more to understand what has worked and what hasn’t.”

Research conducted by the Wisconsin School of Business and France’s HEC Business School shows that 65 percent of retailers express optimism, while 35 percent of developers say they feel an improvement in the retail real estate sector.