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MAPIC, CANNES – MOSCOW

Moscow and St Petersburg are in the top 10 of European cities named most attractive for international retailers

According to new “Destination Europe 2013” report by Jones Lang LaSalle


MAPIC, CANNES – MOSCOW, 14 November 2012 – London named the most attractive European location for international retailers, according to the Jone Lang LaSalle Cross-Border Retailer Index  - Destination Europe 2013. The company’s new report presented at MAPIC, Cannes today analyses the expansion and presence of 250 international retailers.

Key findings are:
• Leading city: London ranked 1st, Paris 2nd and Moscow 3rd – but Moscow is catching up fast
• Leading retailer: Zara is the only retailer with 100% coverage in all leading European retail markets
• Main retail exporters: Italian retail fascias most exported, with US 2nd and UK 3rd – but US is to leapfrog Italy in 2013
• Market opportunity: only nine retailers have over 80% coverage across 57 key markets

London comes out as the most attractive city across 57 key retail markets; 235 out of 250 retailers studied operate in the capital of Great Britain. Paris which is the 2nd in Cross Border Retailer Index accounts for 217 retailers, and Moscow, being the 3rd in the rating  – for 196 retailers.

Jones Lang LaSalle Cross Boarder Retailer Index 2012
Jones Lang LaSalle Cross Boarder Retailer Index 2012.png
Source: Jones Lang LaSalle

Vladimir Aleksandrovskiy, Head of Retail Tenant Representation, Retail Department, Jones Lang LaSalle, Russia & CIS,  said: “It is an interesting fact that Moscow goes ahead of Milan – the “fashion capital” of Europe - where only174 retailers operate  at the moment. However, the biggest share of international retailers operating in Moscow  is represented by mass-market brands, while of the premium and luxury brands penetration is not so high in this city.  The second Russian city – also included in the top 10 – is – Saint Petersburg (8th). 142 international retailers now operate there, and half of them belong to the mass market segment.”

James Dolphin, Head of EMEA Retail Agency, Jones Lang LaSalle said: “London is a springboard for many retailers who want to expand internationally. We have seen several US and now Chinese retailers start their European journey over the past few months in this way. More will follow, driven in part by Westfield’s successfully launched new shopping centres, continued demand for space in Bond Street, Oxford Street, Regent Street and Covent Garden, but also sustained market opportunity, tourism levels post the Olympics, political stability and a transparent real estate market.”

Competition intensifies as retailers look East

However, with subdued economic growth in Western and Southern Europe, retailers are also starting to simultaneously look further east.

James Brown, Head of EMEA Retail Consulting and Research, Jones Lang LaSalle explained: “Emerging growth markets provide attractive expansion opportunities. Rental levels are generally lower than in more mature markets and retail sales growth prospects are clearly stronger. St Petersburg (8th), Prague (9th), Istanbul (11th), Warsaw (19th=) and Kiev (23rd=) all therefore perform strongly in our index within this context. Central and Eastern Europe has more markets in the top 30 retail locations than Southern Europe. For mature retailers established in core European markets, Eastern Europe provides both growth opportunities and diversification.”

Russia (Moscow – 3rd; St Petersburg – 8th), Spain (Madrid – 5th; Barcelona – 10th) and Italy (Milan – 4th; Rome – 6th) are the only European countries with two cities in the index top ten, scoring substantially above ‘average’.
Germany has five cities in the top 20 (Munich – 7th; Berlin – 12th; Hamburg – 13th; Frankfurt – 16th; Dusseldorf – 19th).

Prime cities

First three positions in the rating of the most popular European cities with luxury brands are represented by London and Paris, and Moscow follows them with a significant gap. St. Petersburg dropped to the 11th being displaced from the top-10 by Istanbul and Zurich.

Kiev demonstrates much higher performance compared to the aggregate rating considering also middle class and luxury brands, and is the 12th in the Index. A low level of mass market brands penetration into the capital of Ukraine is due to the small amount of modern shopping centers in the city while the luxury retailers encouraged by Euro-2012 entered the Kiev trade market. Among the newly opened boutiques are Valentino, Prada, Dolce & Gabbana.
Сcross Border luxury Retailer Index 2012.png
Expansive retailers


Zara is the only retailer with 100% coverage across all the key European markets reviewed, and therefore tops the retailer coverage league. H&M is next with 96%. The Body Shop, Benetton, Mango, Lush, Tommy Hilfiger, Timberland and Foot Locker comprise the rest with 80% market coverage. The Top 20 is dominated by mainstream retailers, accounting for 12 out of the Top 20 retailers by total coverage.

There are six premium retailers within the Top 20, with US retailers Tommy Hilfiger and Timberland ranking highest (7th=), both with over 80% coverage of Europe’s key markets.

Vladimir Aleksandrovskiy, Head of Retail Tenant Representation, Retail Department, Jones Lang LaSalle, Russia & CIS,  said: “More than 90% of the most popular European brands operate in the Russian market already with the rest considering to enter. The franchise remains the most common scheme to set up operations - international retailers use local players to identify the best sites & locations and to ‘test’ Russian consumers. But after several years of successful work, most of them do not need further assistance and continue to build their operations in the Russian market directly. Within the coming years, the high level of disposable income and the rapidly growing middle class will make the Russian retail market one of the European leaders in terms of turnover.”

Top 20 Retailers.png
Italy tops retailer nationality

Italy is the number one exporter of retail fascias, accounting for 17% of total international retailer presence. The US is the second, with 16% of total international presence, with the UK third, accounting for 13%. The US is expected to leapfrog Italy in 2013.


About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 195 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg. For further information, please visit www.joneslanglasalle.ru