Gleaming amid the gloom: luxury retail thriving in London – C&W
Prime Central London retail areas have continued to thrive despite the economic gloom elsewhere, says Cushman & Wakefield, with record levels of retail space changing hands on two key streets.
The firm’s research shows that 13 transactions have taken place so far this year on Bond Street and Sloane Street, which it describes as two of the world’s top luxury shopping destinations, with 65,800 sq ft of retail space transacted and 26,000 sq ft of new retailer space added – 15,000 sq ft on Bond Street and 11,000 sq ft on Sloane Street. Italian designers have been prominent among the transactions on these two streets, accounting for 38% of the retail space transacted. The additional space added to these streets has mainly been through the conversion of office space into retail premises, Cushman & Wakefield notes.
There has been strong demand from retailers to add to the size of their stores, in order to meet the growing demand from international customers in London. But demand currently outstrips supply on these two streets by about ten to one, C&W says, meaning that many luxury brands are now having to relocate to shops just off Bond Street and Sloane Street.
“Due to the level and quality of uptake, rental levels are now just under £1,000 on Bond Street with strong growth also reported on Sloane Street over the last 12 months,” C&W says.
Peter Mace, head of Central London retail at Cushman & Wakefield, said: “Bond Street and Sloane Street continue to hold their ‘super luxury’ status and experience robust demand for prime retail space. London is a natural choice for luxury retailers because of its position as a fashion hub and the rich mix of nationalities and tourists. Overseas shoppers are ensuring that luxury retail on these streets continues to thrive.”
