A new report from JLL forecasts that international retail expansion will accelerate in the Nordic region over the next two years. The Destination Nordics 2015 report analyses the presence and expansion of international retailers in six major Nordic markets and indicates that Nordic cities remain areas of opportunity.
Over the next couple of years, international retailer growth is expected to accelerate in the region due to both population growth and retail sales growth.
The six major cities mentioned in the report are distinctive, since they are some of the most affluent in Europe. They demonstrate both a high level of market maturity and prospects for growth, as well as low risk. JLL has ranked the most attractive cities for international retail brands as follows:
James Dolphin, Lead Director of International Retail at JLL, stated recently that while a number of international retailers are continuing to focus on cities in Western Europe, some are turning their attention to new markets.
The ones who are choosing to refocus are looking to key Nordic cities as a platform upon which to base new growth. He noted that over the last couple of years, these important Nordic cities have been able to attract new participants to their market at greater rates than cities in both Western and Southern Europe.
With Unibail-Rodamco’s 1.090,000 sq ft Mall of Scandinavia due to open in November and REDI entering the market, up to 50 international retailers have their eye on expanding into the Nordic market over the next half-decade.
Mr. Dolphin stated that considerations which were once seen as major barriers to tapping into the Nordic market, such as foreign currencies and distribution are no longer as much of a challenge.
Competition between international retail brands is still relatively low and new entrants into this market, such as Louis Vuitton, Michael Kors and Boggi Milano, are finding success here.