Two Spanish cities feature among the world’s top 100 retail cities: Barcelona is ranked 29th, while Madrid sits in 36th The Hot Retail Cities report provides an inaugural list of the world’s 100 most attractive cities for retail based on around 50 criteria measuring their economic, commercial, political and cultural landscapes. Fostered by Tendam and […]
26 de October de 2018
Cities are increasingly being used by fashion companies as the cornerstone to map out their expansion plans. With this in mind, the Hot Retail Cities report, drafted by Modaes.es and fostered by Tendam – one of Europe’s leading fashion retailers operating in the premium mass market brand segment and owner of Cortefiel, Pedro del Hierro, Springfield, women’secret and Fifty – in collaboration with the Instituto de Empresa, details the importance of the conditions in a city for retailers’ strategic expansion decisions, as well as listing the world’s 100 most attractive retail cities in 2018
According to this inaugural study, New York is currently the world’s best city for conventional retailers. The report uses around fifty criteria across different areas to assess the conditions for retail activity in cities. This first edition has found that New York offers an ideal location based on its socio-economic, demographic and political factors, as well as its tourist appeal and the quality of its infrastructure, among other points that all have an impact on retailers everywhere. The Big Apple scores 625 out of a possible 1,000 points.
Los Angeles takes the runner-up spot with 556 points, while Singapore completes the podium in third place with a score of 548. The remainder of the top 10 hottest cities for retailers is rounded off by San Francisco, with 540 points, Chicago (538), Hong Kong (534), Boston (531), Tokyo (530), Shanghai (518) and London (513).
Two Spanish cities are listed in the ranking among the best places for the retail business. Barcelona is ranked 29th with a score of 425 points, while Madrid sits 36th with 410 points.
Both Barcelona and Madrid’s key strengths reside in their socio-economic, economic and political environments, the areas in which they received their highest scores. In addition, the presence of fashion retailers, shopping areas, its built environment and geographical location are some of the factors working in Barcelona’s favour. Madrid, meanwhile, is one of Southern Europe’s wealthiest and most dynamic cities, as well as a hive of commercial activity and a hub for major businesses, which consistently position the Spanish capital as a benchmark location for retail’s biggest names.
Since 2008, over half the world’s population have been living in cities, a figure which could rise to 60% by 2030. In fact, the process of urbanisation is one of the most far-reaching phenomena in the history of mankind, representing a transformation which has shaped economies and social landscapes, not to mention the activity of large, global retailers.
The mission of Hot Retail Cities is to help fashion companies better understand where they operate and where they could set up shop going forward. The report provides an analysis detailing the retail conditions in 100 cities around the globe. Based on these characteristics, the report measures each city’s degree of merit for conventional retailers.
Demographics, the economy, politics, the socio-economic landscape, tourism, retail, fashion and trendiness represent the eight major areas analysed to give a score to these urban areas, underpinned by criteria such as population, wealth, GDP growth, minimum wage, tax barriers, airport passenger traffic, tourist figures and the entrepreneurial climate. The different indicators, taken from a wide range of renowned public and private sources (from the World Economic Forum to the United Nations and Heritage Foundation), are weighted according to their direct influence on retail activity, with the scores then apportioned accordingly. Based on the above, Hot Retail Cities is able to rank the best 100 cities for conventional retailers from the circa 150 cities analysed.
According to Tendam CEO Jaume Miquel, “Spain represents a benchmark for fashion and internationalisation, and we must continue to lead the retail sector in a constantly changing world”.
Eduardo Ruiz, Director of PD Retail at the Instituto de Empresa, said that “retailers are faced with the challenge of serving a global market with local tastes”. “Their success in ultimately establishing a footprint within a certain market will depend on how well they analyse the local landscape”, he added.
Pilar Riaño, Director at Modaes.es, said that the report presented today in Madrid could gain a higher profile as future editions are released. “The hope is that this tool, which offers great insight into all aspects and trends to identify the hottest retail cities, will become a key driver over time to optimise each city’s retailing conditions”, she said.
Download the report here.