London takes top spot for global luxury store openings

London has taken the global top spot for luxury store openings in 2018, according to research from international real estate advisor Savills.

According to the firm, London accounted for 9.6 percent of all luxury store openings worldwide last year, as the luxury market continues to persevere amid the country’s existing economic uncertainty. After ranking fourth in 2017, London pushed its way to the top of the list this year, beating Bangkok (7.7 percent), Dubai (6.7 percent), Hong Kong (6.4 percent), Paris (4.7 percent) and New York (4.4 percent), which took the next five spots.

The research showed that the UK capital saw 33 luxury retailers open their doors last year, up 38 percent from 2017. While luxury fashion brands continued to dominate, accounting for 45 percent of store openings, this number was down on 2017, as specialist accessory brands, focused on bags, footwear and eyewear, increased their share from 20 percent to 24 percent. Specialist jewellery and watch brands also continued to account for a sizeable number of store openings, at 24 percent.

Savills noted that this increase in openings follows the depreciation of sterling, resulting in increased international luxury retail spend in London in 2017, which in turn has gone on to support requirements and subsequent new openings in 2018.

Globally, luxury brands opened 16 percent fewer new stores in 2018 compared with the year before, with brands opening new stores in 85 cities last year, down from 118 in 2017 - a number that Savills says “suggests that brands are refocusing on core, strategic and often underrepresented markets.”

Marie Hickey, retail research director at Savills, commented in the report: “In spite of the headwinds facing UK retail, the London luxury market is looking not only resilient but is also offering attractive opportunities for those brands who want to enter the market, as well as those looking to improve their physical presence with more high profile, experiential spaces.”

Anthony Selwyn, head of London and international retail at Savills, added: “Last year we saw the big luxury brands retrench to the core cities and we expect these global destinations to remain the key focus for luxury brands wanting to expand or improve their physical profile in 2019. For the UK market, it’s great to see London leading the way, and with the core cities predicted to be the main areas of interest for brands this year, the future looks positive the capital.”

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