For decades London has led the way in terms of innovation, fashion and retail trends. It is the focal location for new retailers seeking representation in the UK.
London plays a key role on the regional, national and international stage. It is a top target destination for international retailers, and has attracted a greater number of international brands than any other city globally. Demand among international retailers has reached unprecedented levels with high profile openings by the likes of J Crew, Victoria’s Secret, Ralph Lauren, Victoria Beckham, Karl Lagerfield and Omega. For those adopting a flagship store only strategy, London gives access to the UK market and is also seen as the springboard for store expansion to the rest of Europe.
London is the largest urban area in the European Union, home to 8.6 million people and hosting over 26 million visitors annually, contributing more than £11.2 billion to the local economy. In central London there is limited retail supply and retailers are showing strong trading performances.
Kensington High Street
Kensington High Street is located to the west of Oxford Street, in the affluent borough of Kensington and Chelsea. The street provides a range of domestic and international main-stream and premium fashion brands including GAP and Marks & Spencers.
CENTRAL LONDONCentral London is undoubtedly one of the forefront destinations for international brands, particularly those with larger format store requirements (e.g. Apple, Underarmour, Kiton, H&M, Galeries Lafayette).
The West End
The West End is comprised of a number of key streets including Oxford Street, a 1.5 mile retail thoroughfare with more than 450,000 sq.m of retail floorspace. It has a main-stream fashion focus and is home to many UK and international retailers’ flagship stores, as well as department stores including Selfridges, John Lewis and House of Fraser.
Regent StreetRegent Street transects Oxford Street at Oxford Circus and runs south to Piccadilly Circus. It has 130,000 sq m of floorspace and its focus is high-end fashion and luxury retailers. Known as the “Mile of Style”, it is home to iconic stores such as Burberry and Hamley’s toy store.
Carnaby SteetCarnaby Street is a world renowned shopping destination famous for cutting edge international fashion and lifestyle retailers. Anchored by the Liberty department store to the north, Carnaby is the gateway to Soho.
Bond StreetBond Street is London’s most established luxury retail destination. Availability for new retail space has become increasingly rare, with multiple international luxury brands seeking to secure a unit, particularly on the more exclusive southern end of the street. This limited supply has caused increased demand amongst luxury retailers for nearby streets, in particular Conduit Street, Bruton Street and Burlington Gardens. Bond Street includes a total of 117 commercial units of which 95 (81.2%) were identified by C&W as being occupied by luxury retailers. Existing retailers on the street continue to redefine their space, with Patek Philippe expanding their presence into the adjacent store and Victoria’s Secret expanding their flagship store into adjacent retail space. However, there have also been a host of retailers opening new stores on the street, including George Jensen on New Bond Street and Bogh-Art on Old Bond Street.
MayfairMount Street is located in Mayfair about a ten minute walk from Bond Street, and has become a luxury destination for many retailers who are seeking space in London’s West End. The street has now attracted a significant number of luxury retailers such as Christian Louboutin, Dior and Celine. The street currently still has a high proportion of non retail units, dominated by galleries, restaurants and exhibition space and is anchored by the exclusive Connaught hotel. The trend for luxury retailers choosing to locate here is relatively new and it is expected that their number will increase in the future.
KnightsbridgeSloane Street is located in upmarket Knightsbridge and close to some of London’s most expensive hotels. It is now regarded as the most exclusive luxury retail street in London. There are 53 commercial units on the street and 49 (92.5%) of these are classified as luxury retailers, making it the most concentrated luxury street of all the locations surveyed across London, Paris and Milan. The northern part of the street, at the junction with Brompton Road, is home to a greater number of high-end retailers, including Louis Vuitton, Hermès, Dolce and Gabbana and Chanel.
Brompton Road is also located in Knightsbridge and offers a range of premium high-end fashion retailers. The number of luxury retailers is limited, however it is expected that they will increase as the competition for luxury units on nearby Sloane Street intensifies. New entrants include the likes of Buggati and Just Cavalli.
Covent Garden is on the eastern fringes of the West End, between St. Martin’s Lane and Drury Lane. It is associated with the former fruit and vegetable market in the central square, now a popular shopping and tourist site, and the Royal Opera House. The district is divided by the main thoroughfare of Long Acre, north of which is Neal’s Yard and Seven Dials where a collection of independent shops can be found.
King's RoadKing’s Road is a popular shopping street also located in the borough of Kensington and Chelsea. The retail offer is strongest at the eastern end of the street towards Sloane Square, where it is anchored by the Peter Jones department store (John Lewis) and the Duke of York shopping precinct with outdoor cafés and markets. The street has now become a mainstream destination in its own right and is home to retailers such as All Saints, Zara, Jigsaw, COS and Massimo Dutti.
CITY OF LONDON
The City of London, London’s main financial district has attracted a considerable mass of foodservice and mid to up-market retailing. One New Change, close to St Paul’s Cathedral, is the first shopping centre in the City and has a range of fashion and food operators including Hugo Boss, Top Shop, Next, Superdry, Banana Republic and M&S Simply Food. The Royal Exchange, located opposite the Bank of England, is a key destination for many luxury retailers.
SPITALFIELDS AND SHOREDITCHOn the edge of the City lie Spitalfields and Shoreditch, providing a number of popular weekend markets specialising in cutting edge fashion, along with a thriving bar and restaurant scene. Shoreditch is also home to a unique shopping experience in BOXPARK, the worlds first pop-up mall. The scheme operates out of refitted shipping containers and will trade for four years. Its unique appeal has attracted brands such as Bobby Brown and Belstaff.
WESTFIELD LONDONLondon never stops expanding and renewing itself, as evidenced by several key recent developments. The Westfield London scheme in Shepherd’s Bush opened in 2008, providing 1.5million sq.ft of retail floor space, a cinema complex and food court providing a mixture of mass-market and luxury brands just 20 minutes by underground from the West End. It brought several new retailers to UK including Jack Wolfskin and Victoria’s Secret. There will be an extension in 2017 that will add 740,000 sq ft of high-quality retail anchored by a 230,000 sq ft John Lewis Department store, also with pre-lets to H&M and Primark.
WESTFIELD STRATFORDWestfield Stratford in East London opened in September 2011, coming to the market ahead of the 2012 London Olympics. It provides 175,000 sq.m of retail floor space, a cinema complex and food court. It is the gateway to the Olympic Park and provides a range of UK and international retailers.
Brent CrossBrent Cross was the first large enclosed shopping centre to be built in the UK. It first opened in 1976 and has since been extended and refurbished, housing more than 120 stores and cafes featuring 2000 leading brands. The centre continues to be at the forefront of UK retailing and is in high demand. There are now plans for a major regeneration project surrounding the centre, which includes a 600,000 sq ft extension to the mall.
|KEY AREAS / STREETS/SHOPPING CENTERS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||TYPICAL RENT FOR UNIT OF 2,000 SQFT||RANGE OF UNIT SIZES|
|Oxford Street||Mass market, tourists. The UK and Europe’s busiest street.||Selfridges, John Lewis, House Of Fraser, Debenhams, Marks & Spencer, Primark, Gap||New Balance, Tesla, & Other Stories, Dyson, Timberland||GBP 815,000 p.a||20- 15,000 sq.m|
|Regent Street||Mid-upper market. The "Mile of Style"||Apple, Anthropologie, Guess, Hamleys, COS, Banana Republic, AllSaints||Polo, Michael Kors, Coach||GBP 600,000 p.a.||20-3,000 sq.m|
|Covent Garden (including James Street, Floral Street, Long Acre, Neal Street)||Lively retail and leisure district. Caters for mass-market consumers, but more up-market retailers on Floral Street and Neal Street.||Urban Outfitters, Apple, Burberry, Jigsaw, Diesel||Levi’s, Brandy Melville, Kikki-K, Catherine Pooley, Kiko, Bobby Brown, Reebok, Nixon Watches, Charlotte Tilbury||GBP 1,000,000p.a.||20-3,000 sq.m|
|Carnaby Street (including Carnaby Street, Newburgh Street)||Trendy fashion-conscious shoppers||Puma, Diesel, Camper, Eleven Paris, Dr Marten’s||Scalpers, Urban Decay, GH Bass||GBP 430,000 p.a.||30-1,000 sq.m|
|Kensington High Street||Busy, local shopping street, mainly catering to affluent residential catchment.||Whole Foods Market, Gap, Marks & Spencer||Wilko’s, Banana Republic, Seraphine||GBP 215,000 p.a.||25-10,000 sq.m|
|Kings Road||Local fashion street with a number of international mid-market brands.||All Saints, Zara, Jigsaw, Massimo Dutti, COS||Kiehl’s, Reebok, Nike Women’s, & Other Stories.||GBP 415,000p.a.||20-2,000 sq.m|
|City of London (Cheapside)||In the financial district and attracts a considerable mass of foodservice and mid- to up-market retailing.||Next, Marks & Spencer, House of Fraser, H&M||Soho House, Massimo, Dutti||GBP 220,000 p.a||10-2,000 sq.m|
|Mount Street||Luxury and designer brands||Marc Jacobs, Christian Louboutin, Loewe||Dior, Marni, Richard Mille Watches, Vlextra||GBP 460,000p.a.||25-500sq.m|
|New Bond Street/ Old Bond Street||Luxury and designer brands||Gucci, Louis Vuitton, Chanel, Prada, Polo Ralph Lauren, Cartier, Tiffany & Co.||Patek Phillipe, Delvaux, , Valentino, Nirav Modi, IWC||GBP 1,300,000 p.a.||25-3,000sq.m|
|Brompton Road||Luxury and designer brands||Harrods, Harvey Nichols, Burberry, Emporio Armani||Porshe Design, IRO, Just Cavali, Bugatti||GBP 730,000p.a||20-3,000 sq.m|
|Sloane Street||Luxury and designer brands||Louis Vuitton, Prada, Hermes, Ferragamo, JP Tod’s||Omega, Micheal Kors||GBP 860,000 p.a.||40-1,500 sq.m|
Data as of July 2016
In London, it is possible to experience the full range of global cuisine at all price points. Operator demand remains extremely strong and large premiums (key money) are commonplace to secure the best locations. Large transactions of note include Sushi Samba, who are taking a second restaurant away from the City in Covent Garden, and TGI Fridays who are re-investing in Leicester Square with a second property on the square itself.
The market is facing genuine disruption from delivery specialists such as Deliveroo, with most operators seeing this as a way of boosting sales. The model of providing a full delivery service to restaurants (who would not normally offer delivery) has opened up new markets. The opportunity for some will be a threat to others but the effect on property requirements is yet to be seen. The trend for “street food” has continued, London Union and Kerb have established new leisure/dining destinations by curating “street food markets” of high quality operators. These users are also being sought by major landlord estates for the activity they bring, however these tend to be in more peripheral locations where larger spaces are required.
The mid-market/fast casual dining sector has grown without a central dominant cuisine which is a change from recent years. The success of Bao (Taiwanese), Hoppers (Sri Lankan) and Babaji (Turkish) demonstrates the diversity in the market and a maturity in the willingness of investors to back a number of different concepts. The burger and American BBQ market is also maturing as brands are acquiring at a slower rate in London; Foxlow, Patty & Bun, Honest Burger, Shake Shack and Five Guys have all taken on new central locations. It is anticipated that pizza occupiers will lead requirements in the next year with a number of new entrants entering the mid-market such as MOD Pizza and Inferno.
The fine dining sector in London continues to thrive. The Ivy has expanded from its original Covent Garden site to three additional locations for its offshoot The Ivy Grill offering all day dining; this once unique destination is proving it can succeed in extending its brand. Caprice Holdings, The Ivy’s owner, have also been responsible for the popular and very well received Sexy Fish on Mayfair’s Berkeley Square, with reportedly the highest rent in the UK market. Park Chinois, a high end combination of Chinese cuisine and live jazz performances in Mayfair, has been opened by Alan Yau (who previously opened Hakassan and Yautcha).
London has seen the expansion of restaurateurs opening into pubs as well as pubs hosting start up restaurants. For traditional pubs these adaptions can be seen as lifelines in the face of a younger demographic that is drinking less than the previous generations. The Galvin Hop has opened adjacent to their restaurant in Spitalfields and the Lighterman in Kings Cross.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATOR INCLUDING||RENT FOR 3,500 SQFT UNIT|
|Soho||Longstanding entertainment area. Fashionable district of upmarket restaurants and media offices. Includes China Town.||Hix, Yauatcha, Wahaca, Byron, Wagamama, Cote Brasserie, Busaba Eathai, Polpo, Duck and Rice, Babaji||GBP 280,000 - 525,000 p.a.|
|Leicester Square||Pedestrian square between the West End and Covent Garden. A focus of theatres and cinemas. Tourist Hotspot.||Burger King, McDonalds, Chiquitos, TGI Fridays||GBP 400,000 - 1,000,000 p.a.|
|Covent Garden||Lively retail and leisure district, popular with tourists and locals. Fusion Boutiques.||Hawksmoor, J Sheekey, The Ivy, Opera Tavern, Wahaca, Byron, Jamies Italian, Flat Iron||GBP 280,000 - 525,000 p.a.|
|Mayfair||Exclusive retail, hotels, restaurants and clubs. Prime office area.||Hakkasan, le Gavroche, Scotts, The Wolseley, Nobu, Novikov, Cecconis, Goodman, Sexy Fish, Park Chinois||GBP 350,000 - 665,000 p.a.|
|Spitalfields & Shoreditch||Trendy, urban, gritty, edgy and increasingly affluent.||Galvin La Chappelle, Hawksmoor, Nuno Mendes, Blixen, Andina, Tramshed, Dishoom, Wright Brothers.||GBP 210,000 - 350,000 p.a.|
|Canary Wharf||Financial district, large office population, five-day trade.||Rocket, Roka, Boisdale, Goodman, Camino, Wildwood, Byron, Wagamama||GBP 175,000 - 295,000 p.a.|
Data as of July 2016
Peter MacePartner, Head of Central London Retail
43-45 Portman Square
London W1A 3BG
Tel: +44 (0)20 7152 5039
Mob: +44 (0)7793 808 039