Paris re-establishes itself as 'prime shopping destination' with new retail openings

As retailers in Paris endeavour to get back to 'business-as-usual' following the devastating terrorists attacks that shook the nation last week, a number of international retail entrants have been making their debut in the capital city - placing Paris ahead of London in terms of new global retail openings for 2015 and re-establishing its position as a "prime shopping destination."

According to recent research from international real estate services Savills, the number of new international retail entrants in Paris is expected to total 29 this year. This is slightly higher than London, where the number is expected to reach 26. New retailers to enter Paris this year include Nixon and S.Deer, whilst Dsquared2 and Alexander Wangopened flagship stores in London earlier this year. This is a reversal of international new retail entrants in the cities last year - in 2014 Paris saw 24 new global entrants, whilst London attracted 30.

Paris overtakes London with the most new international retail openings in 2015

Savills attributes this shift in store openings to retail rental prices as well as tourist travelling and spending habits. "The Chinese visitor story is still very persuasive to brands and Paris continues to outpace London in this respect," commented Marie Hickey, retail research director at Savills. "But, with improved visa streamlining we could see London start to consistently outperform Paris in terms of new entrants over the next three years especially in light of it being cheaper from a total occupational cost perspective, for example Zone A rents on Bond Street are 27 percent cheaper than on the Champs Elysées."

Research indicates that 36 percent of the new international retail entrants to Paris since 2012 are classified as luxury to 'accessible' luxury brands, making it the largest sector of new entrants to the city. In London this percentage sits slightly low at 31 percent as more aspirational brands have accounted for 40 percent of the market share of new entrants over the past three years.

"Paris has historically been known across the globe as a prime shopping destination, but increasingly we have seen new international brands looking for stores," said Christian Nehme, director of retail at Savills Paris. "Interestingly we have seen a strengthening presence of Asian retailers in the last two years with two Japanese, two Chinese and three Korean brands opening in Paris, including Tom Greyhound and TTF Jewellery."

Paris welcomes new peak of international luxury retail entrants

The US has also become a 'significant' source market for both Paris and London over the past three years. London has attracted 22 US brands, including J Crew and John Varvatos since 2012 and Paris has attracted 18 brands during the same period. The arrival of new international brands has in turn affected both cities occupational demand and rental growth.

In London, the average Grade A rents across the city centre have increased on average by 11.5 percent per ammun over the last three years. Rental on London's premium luxury Bond Street have grown even more - 27.2 percent per annually during the same period.In comparison, rent on the Champs Elysées Grade A has increased by 8 percent per annum, making it more attractive to oversea retailers.

"In London we know there is a growing list of requirement from international retailers as they understand that it is a key city to be located in as a gateway to the European market," noted Anthony Selwyn, head of Savills central London retail. " Availability constraints on prime pitches have meant that retailers are looking beyond the traditional established locations and expanding into nearby streets that still provide the high footfall they are looking for."