London is set to attract a record number of international luxury brands this year, according to new research from real estate Savills.
This year so far, Balmain, Alexander Wang and Versus Versace have all opened their first UK stores in the capital and Savills says it is just the start as it predicts that another four luxury brands will open by the end of the year, which would make 2015 a “new peak” in luxury fashion openings in London.
Marie Hickey, director of research at Savills, explains: "In 2012 only one international luxury fashion brand opened in London and last year there were six. We expect a total of seven to open by the end of 2015 including brands Erdem and Aquazzura.”
Bond Street used to be the traditional first point of call for most new luxury entrants, however, with fewer opportunities brands are looking within the “wider luxury quarter of Mayfair.”
Hickey adds: “All four of the new luxury openings expected by the end of this year will be on pitches within the wider luxury quarter of Mayfair such as Albemarle Street and South Audley Street.”
London to attract record number of international luxury brands this year
The international real estate advisor reports there have been 15 new international retail entrants in the London market so far this year, including Lindex, IWC Schaffhausen, Billionaires Boys Club, DSquared and Cuple. There are a further 13 due to open by the end of the year, which would total 28. This compares with 33 new entrants in 2014 and 31 in 2013. With Savills stating that the gradual decline in new entrants reflects availability constraints rather than a softening in appetite from international brands to enter the UK market.
Anthony Selwyn, head of central London retail at Savills, said: “London continues to be a global ‘shop window’ for retailers and provides a strong international platform to showcase brands, not just generate sales. Looking ahead, we anticipate more European and international retailers will want to expand into London.
“Whilst Oxford Street, Bond Street ,Covent Garden and Regent Street will maintain their position as the main focus for new entrants, some brands could potentially look for space outside of the core prime streets in the same way we have seen locations such as Westfield London secure a number new retailers over the last three years.”
Image: Alexander Wang store