Despite Target’s much publicized exit from the Canadian market, the country remained a top destination for global retailers in 2014, according to a new report.
CBRE’s How Global is the Business of Retail? found that Canada is one of the top 10 destinations for retailers looking to expand, and Toronto is the most targeted city across the Americas.
In 2013, Canada had fallen right out of CBRE’s retail rankings, but it is now ranked 8th when comparing new retail entrants on a national basis.
Analyzing specific cities, the report revealed that Toronto attracted 25 new retailers, ranking 12th in the world.
“This result should bolster the confidence of landlords and retailers in Canada who faced some tough questions in the wake of the failed Target rollout,” said Ross Moore, director of research for CBRE in Canada.
“While competition in the Canadian retail market is fierce, major global brands have opened some of their most profitable stores in Canada.
“Many of these openings were planned well in advance of recent events, but it’s only natural that other retailers will try to replicate that success. We are already tracking 27 retailers that intend to open in Canada in 2015.”
Cities in Asia remain a priority for retailers, with Tokyo, Singapore and Taipei among the top five most targeted cities in the world; however, Toronto was one of five new entrants on the list along with Doha, Manila, Stuttgart and Istanbul.
As global economic growth continues to ramp up, retailers will be more willing to venture into new markets and pursue areas of opportunity.
“Toronto is unique in that it appeals to a wide variety of retailers due to the diversity of the population, relatively stable economy and high disposable income,” Moore noted.
“Toronto remains the gateway city for retailers looking to establish a Canadian presence, and residents of Vancouver and Montreal can expect major brands to expand into their markets thereafter.”