International brands have accounted for 40% of the openings on High Street (locals at street level) between January and September in Spain, according to data managed by CBRE.
The interest of these operators in locating themselves in the main Spanish shopping streets has increased in the first nine months of the year, representing 49% of the demands for new premises. This figure is above the 45% registered in the same period last year.
Some examples of the transactions carried out by international brands are the rental of a 600 square meter premises by New Balance in Portal del Ángel (Barcelona), the rental of RayBan in Gran Vía (Madrid), the implementation of Normal on Alfonso Street (Zaragoza) or the Lego rental on Colon Street (Valencia).
“The increase in interest on the part of international operators is indisputable, although it has not yet translated into an increase in the number of signed transactions. This is mainly due to the demands and requirements of this profile. International brands prioritize location, so they focus on opening in the most in-demand stretches of the main streetswhere the availability of premises is practically zero,” he explains to elEconomista.es Susana El hombre, new director of Retail Occupiers at CBRE. The board of directors, from their new position, will develop an integrated proposal of services for brands and will enhance the company’s approach to this type of customer.
Hiring in retail increases
Transactional activity has shown notable dynamism throughout the year, registering a 9% increase in rented area compared to the previous year.
The fashion sector continues to be the main protagonist, ahead of specialty retail and accessories. Specifically, Fashion represents 29% of new openings. Despite the dynamism, this share has decreased compared to the same period in 2023.
The restaurant sector, On the other hand, it has registered the greatest increase compared to last year’s figures, going from presenting 3% to 13%. The accessories and home sectors have also registered increases of seven and two percentage points and have reached a share of 15% and 4%, respectively.
“The physical store is located at the center of the brands’ business strategy,” explains CBRE, which indicates that more than 70% of the brands surveyed intend to expand their store portfolio in the short term, with the majority of them being of a similar size or slightly larger than the existing ones. Specifically, Retailers are looking for an average of 7% more surface area than in 2023.
According to the latest edition of the European Retailer Occupier Survey report, almost 90% of the brands surveyed agree that the consumer experience in the store is the most relevant factor in which to invest, focusing both on store renovations and improving the access to testing products and optimizing the payment process, among other actions. The number of brands that recognize a positive relationship between the opening of physical stores and online sales in their area of influence also increases.
As a trend in expansion plans, diversification in different formats and types of assets stands out. Brands want to reach where the consumer is, so they are increasingly adapting to new store models, whether on the street, in shopping centers or in retail parks. In fact, 26% of the brands that opened in Shopping Centers or Retail Parks in the last three years also opened new stores on the High Street, according to CBRE data.
In addition, operators are also expanding their area of operation. The number of locations, among new cities and regions, where operators are interested in establishing themselves has increased by 36% in 2024, evidencing the investment in the geographical positioning of brands.
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