We work with international clients to understand what drives sales for their brand in existing locations, to aid future expansion.
For the existing portfolio, CBRE use multiple regression analysis to test over 200 variables for their contribution towards store sales. Regression analysis is a statistical technique used to understand the level of impact on sales that each particular variable has; such as complementary retailers, competition, market size and consumer demographics.
How you benefit
ASSESS AND SELECT THE MOST PROFITABLE TRADING LOCATIONS:
We are the only advisor who can bring together knowledge and data on consumer demographics, market size, retailer activity, turnover potential and real estate affordability. This combination allows us to provide you with the most accurate assessment of profitability and viability at country, city and store level.
IDENTIFY LATENT OPPORTUNITIES ACROSS A BROAD GEOGRAPHY:
Our ability to model and review the largest number of retail destinations across Western and Central Europe means that we can identify unexpected locations and opportunities for you. We also use local knowledge of future retail developments to spot locations which will become attractive in the longer term.
DELIVER THE MOST PROFITABLE STORES:
Because our consultancy team work hand-in-hand with our agency teams throughout Europe, we can ensure our country, city and street level recommendations are truly deliverable. Once decisions have been made on the target destinations, our cross border team will work with our market leading agents to negotiate and deliver the best stores on the best terms.
In this note, we set out the key issues which Brexit is already raising for retailers. Migration controls and currency movements may mean workers are less ready to work in the UK retail industry, which may increase time and cost. Currency devaluation will also generate more general cost inflation, though not everyone is a loser from these effects, and cost increases may spur yet more innovation in an already dynamic sector. The good news is that this year isn’t all about Brexit. The bad news is there are other more pressing concerns in 2017, with the rating revaluation and apprenticeship levy among the factors which retailers will have to grapple with. As always in retail, the winners will be the most agile and forward-thinking.
• CBRE’s 2017 Outlook report provides a comprehensive overview of the key trends affecting UK property markets in 2017. Alongside core sections covering the economic, political and investment outlook there is coverage of every major investment and occupier sector.
• There is an improved global economic outlook, but inflation is now a more significant risk than previously. There is less concern about emerging markets.
• UK GDP growth is expected to slow to 1.4% in 2017 due mainly to Brexit-related uncertainty and a tighter labour market.
• The Brexit process will mean a very uncertain 2017, with some volatility in markets expected even if the underlying economy is performing well – not least when Article 50 is served.
• 2016 investment volumes likely to be 30% down on a very strong 2015, with 2017 slightly weaker than 2016.