| | Shopping Centre reports that according to research from BNP Paribas Real Estate, a new wave of American retailers is set to take space in the UK, using London as a launch pad for Europe-wide operations.
Brands such as Michael Kors, America Eagle Outfitters, Henri Bendel and Tory Burch, as well as new market entrants, will be among the US retailers drawing up expansion plans, seeking to capitalise on the buoyant consumer environment in the UK.
BNP Paribas said that consumer confidence had been largely driven by strong growth in the UK housing market in 2015, and forecast this to continue over the coming year. It would be lifted further by the tightening UK labour market in 2016, which will see wage growth driven by competition for staff. These continued improvements will boost the UK economy, which is forecast to see growth of 1.7% during 2016.
However, BNP Paribas' retail outlook said that consumer confidence could be impacted by geo-political events and the slowdown in emerging markets. Job security will also remain an issue during 2016, with several key retailers already having entered administration since the start of the year.
Retail returns in 2016 will be largely supported by a return to moderate rental growth in several subsectors. Investors will focus on prime shopping centres and other core retail assets, as well as regional high street units. Standard Retail and Shopping Centres are forecast to be the most attractive retail subsectors, with anticipated total returns of 7.2% and 7% respectively, and prime yields set to hit 4% for both by half way through the year. |