RECon Latin America 2016 – Retailers on the move
14
Transcript of RECon Latin America 2016 – Retailers on the move
RECon LATIN AMERICARetailers on the Move – Global and Cross-Border Expansions
David ZobaChairman, Global Retail Leasing Board
JLL
Why Latin America?
Top Expansion Destination
Latin America has 3 of the top 10 “Hottest Countries for Retail
Expansion,” based on population, low risk and GDP per capita
Rank Country
1 China
2 Uruguay
3 Chile
4 Qatar
5 Mongolia
6 Georgia
7 UAE
8 Brazil
9 Malaysia
10 Armenia
Source: A.T. Kearney, Global Retail Development Index
Why Latin America?
FEWER SHOPPING OPTIONS
Latin American countries have room for retail expansion
The U.S. has over fifteen times more square feet of retail space
per person than Mexico
CountryShopping Center GLA (SF)
per 100 Inhabitants
USA 2,357 SF
Argentina 54 SF
Brazil 71 SF
Chile 217 SF
Columbia 95 SF
Mexico 149 SF
Peru 74 SF
Source: ICSC.org
Cross-Border Expansion
RETAILERS EXPANDING INTERNATIONALLY
Latin American retailers expanding internationally:
Cross-Border Expansion
RETAILERS EXPANDING INTERNATIONALLY
Retailers expanding into Latin America:
Latin America Retailers
TOP BLUE JEANS
Distributed in Colombia, Panama and Mexico
Image Source: Top Blue Jeans
Latin America Retailers
HAVAIANAS
Havaianas is a Brazilian sandals retailer, with a strong global
presence, including in the Americas, Europe, the Middle
East and Asia
The retailer has 10 locations in the U.S., including in
California, Florida, Nevada and New York
In 2013, consumers in more than 100 countries bought more
than 200 million pairs of Havaianas
Image Source: Havaianas
Latin America Retailers
CINEPOLIS
Cinépolis is the largest operator of cinemas in Latin America,
with presence in 13 countries worldwide, including Mexico,
United States, Guatemala, Honduras, El Salvador, Costa Rica,
Panama, Peru, Colombia, Chile, Brazil, Spain and India
There are 44 locations in Brazil alone, with 9 upcoming
openings
There are currently 11 locations in the United States: California
and Florida
Image Source: Cinépolis
Cross-Border Expansion
NIKE
Nike has approximately 151 locations in Latin America
13% of its 2015 sales took place in emerging markets,
including Latin America
Image Source: Nike
Country Number of Stores
Argentina 5
Brazil 50
Chile 16
Colombia 9
Costa Rica 2
Ecuador 12
Mexico 30
Panama 7
Paraguay 2
Peru 12
Uruguay 6
Cross-Border Expansion
BLOOMIN BRANDS
Bloomin Brands currently has 90 restaurants in 7 countries
in Latin America
There are 78 restaurants in Brazil, accounting for a third of
its international presence (75 Outbacks and 3 Abraccio’s)
Outback plans to have 100 total locations in Brazil within the
next 3 years; Fleming’s restaurant to have inaugural opening
in Brazil early this year
Image Source: Outback Steakhouse
Cross-Border Expansion
OLD NAVY
Old Navy opened its first 9 stores in Mexico within the span
of one week during October 2015
Image Source: Gap, Inc.
International Expansion
KEY CONSIDERATIONS FOR RETAILERS
Franchise vs. Owned Stores
Rule of Law
Currency Stability
Tariffs
Professionalism of Shopping Center Industry
Success of Other International Brands
