“South Africa is being targeted by 7% of retailers surveyed, up from 4% in 2011. This places South Africa at number 32 on the rankings of retailer hotspots, up from 37th place in 2011,” says Sanett Uys, GM research and marketing at Broll Property Group. “No other sub-Saharan country is placed in the top 40 retailer hotspots.”

CBRE’s annual research report 'How Active are Retailers in EMEA'? reveals that retailers are targeting a wide range of countries in both mature and emerging markets in 2012, but are largely focused on opening stores in countries where they already have a presence, a similar strategy to that adopted in 2011.

“Nearly three quarters of international retailers (71%) are planning to open more than five stores in the Europe, Middle East and Africa (EMEA) region by the end of 2012, with 20% of retailers looking to open 40 stores or more in 2012 compared to 18% in 2011,” Uys says.

For the first time, Italy leads the way as the most targeted country for retailer expansion moving up from eighth place in last year’s rankings. Italy is followed by Germany, Russia, Spain and France to make up the top five 2012 retailer hotspots, with more than 30% of retailers targeting each country.

More than half of retailers (52%) are aiming to open stores in new cities, but in markets in which they already have a presence, a similar proportion to last year. The number of retailers planning to open additional stores in existing cities is also up from 9% last year to 17% this year, as retailers focus on the markets they know best. In spite of this caution, almost a third of retailers (30%) intend to enter new markets in 2012, again a similar proportion to last year’s survey.

“Retailers have had to cope with a more challenging consumer market than expected in 2011 and adopting a cautious approach to expansion has proved to be sensible call. The eurozone crisis has affected investment decisions in all industries, with retail no exception; however, this has not stopped retailers seeking new opportunities in 2012. Far from it, expansion plans for 2012 are just as extensive as they were in 2011,” Uys says.

“While economic uncertainty persists, occupier demand remains firmly focused on prime retail space and there is little evidence that this will extend to more secondary locations. With virtually no vacancy in prime retail locations, and little new development, the challenge for many retailers is accessing the space they require.”

Value & Denim is the most active sector, with retailers aiming to open an average of 36 stores in 2012 (up from 30.3 last year). The Luxury & Business Fashion sector is also doing well and the sector is planning to open an average of 15.1 stores in 2012, representing a slight increase over their plans for 2011. In contrast, Consumer Electronics retailers are planning to open half the number of stores compared to last year. Online shopping remains high on the agenda for retailers, with three quarters of retailers planning to increase their transactional capability in 2012.