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The Changing Face of Luxury Retail in London’s West End
£2 Billion Luxury Spend per Year Positions London’s West End as the World’s Luxury Epicentre, reports New West End Company CB Richard Ellis reports 0% Void Rates on Bond Street
It is the London Luxury district, a distinctive luxury shopping proposition which clusters together 300 global luxury brands in the key areas of Bond Street, St James’s, Jermyn Street, Savile Row and ‘Maison retail streets’ like Mount Street, which cements the West End’s credentials as a leading destination for luxury brands, ahead of Paris, Milan, New York and Tokyo.
The roundtable hosted by New West End Company and comprising of property investors, retailers, consultants and analysts confirmed that demand is outstripping availability and that void rates are at an all time low, with Bond Street seeing 0% void rates. Over the last three years the retail offer on the key luxury streets within the London Luxury district has ensured that the West End remains a key destination for international brands to position their European flagship stores, and the top target destination for American Retailers as the entry point for Europe.
WHO IS THE LUXURY SHOPPER? [Figures from Global Blue, based on spend per visit]
Saudi Arabia: spending £1,974 per visit
China: £1,310 [visitor numbers set to double bu 2014]
United Arab Emirates: £1,267
Hong Kong: £906
Luxury spending in the West End has surpassed pre-downturn levels, according to data from American Express Business Insights, the data analytics and consulting arm of American Express. This spending power presents a further draw for international brands to come to London’s West End and the Luxury quarter.
Richard Dickinson, Chief Executive, New West End Company said: “London’s West End has been trading for over 250 years as a luxury retail destination and this heritage draws key the international markets China and the Middle East who spend £1,300 and £1,900 respectively. It is the high value transactions of these key markets and the dense assortment of premium luxury retailers that makes the West End so attractive to international luxury brands.”
Jonathan de Mello, Head of Retail Consultancy, CB Richard Ellis adds: “London’s West End is one of the most sought-after destinations for luxury brands in the world. Luxury retailers in the West End are seeing substantially higher sales densities in a number of instances compared to other major city centres that contain luxury retail. Despite virtually non-existent void rates, the potential to grow the area is strong, with an imbalance in the demand for luxury and the space to supply”.
Sujata Bhatia, Vice President, American Express Business Insights, says: “Since 2007, the West End has seen growth in luxury spending of 14 per cent. It has maintained this momentum in the first quarter of this year, with growth up 11 per cent, despite a difficult economic climate. Visitors to the West End are driving this growth, with luxury spending by international travellers growing by 19 percent year on year in 2010 as compared to 2009. The appetite for luxury has returned – this is a trend borne out globally as well as in the UK, particularly in London’s West End.”
Mark Henderson, Deputy Chairman, Gieves & Hawkes and Chairman of London Luxury comments: “London’s West End is a key driver for luxury spend in the UK, not least due to our heritage as the home of British luxury. The incredible brand mix of international and quintessentially British brands, and close cluster of top-end retail stores puts us firmly on the map as one of the most desirable shopping destinations in the world, ahead of our international rivals Paris, Milan, New York and Shanghai.”
Giles Clarke, Executive Director, Grosvenor adds: “International brands are attracted by central London’s heritage, strong economy, and access to overseas shoppers. Many of our retailers in Mayfair and Belgravia come from outside the UK. In particular, Mount Street’s location and distinctive, yet quintessentially English character, has made it a sought after location for new retailers looking for their first or flagship presence in the capital. International brands such as Loewe, Marc Jacobs and Alfred Dunhill sit alongside some of Mayfair’s oldest names.”
- ENDS –
Notes to Editors
More Information on New West End Company:
New West End Company is a company dedicated to driving forward London’s West End as the world’s top shopping destination. It is supported and run by major retailers and property owners in Bond Street, Oxford Street and Regent Street.
New West End Company ensures the ongoing commercial success of the area by promoting the district, delivering street management services and funding public realm projects to improve the shopping environment. It is a leading partner in the biggest regeneration programme of London’s West End in its history. Find out more at www.newwestend.com
200 million visitors travel into the West End each year. Of these visitors 25% are from overseas and a further 21% are from outside of London.
Oxford Street was named best destination in the Visit London awards 2007 & 2008.
London’s West End is the world’s top shopping destination, with a world-class mix of 600 shops, 40 renowned theatres, 30 museums and galleries, 17 Michelin star restaurants and 7 tranquil green spaces.
About CB Richard Ellis
CB Richard Ellis Group, Inc. , a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com