Luxury brands are increasingly eyeing new locations in London, bolstered by significant investment growth.
- Oxford Street attracts nearly half a million daily visitors, maintaining its status as a premier shopping destination.
- London’s retail investment grew by 71% quarter on quarter, reaching £424 million in Q2 2024.
- On Bond Street, luxury brands are strategically positioning themselves, contributing to London’s retail investment surge.
- Brands on Oxford Street are upsizing significantly, reflecting a revival in physical store commitments.
Luxury brands are increasingly seeking prime locations in London, capitalising on the notable rise in investment. Oxford Street continues to be a focal point for brands, welcoming about 500,000 visitors each day. The substantial foot traffic underscores its enduring appeal as a top shopping destination.
London’s retail sector witnessed a remarkable 71% rise in investment volumes from one quarter to the next, achieving £424 million in Q2 2024. This growth highlights the city’s robust market dynamics and attractiveness to global retail investors.
Bond Street remains a critical area of interest for luxury brands looking to solidify their physical presence. Phil Cann, executive director at CBRE, noted that central London spots, especially Bond Street, attract considerable investment attention. This area alone accounted for nearly 60% of total retail investment in the city during the first half of the year.
In Oxford Street, a retail transformation is evident with 19 letting transactions completed in 2024, encompassing 170,000 square feet. All brands relocating since early 2023 have expanded their store spaces, with an average increase of 195%. This expansion signifies a renewed commitment to brick-and-mortar stores amid a generally digital-focused retail environment.
The past 20 months have seen 30 new entrants on Oxford Street, including brands like Future Stores and Manière de Voir. Additionally, significant plans are underway to revamp Oxford Street, aiming to generate £32.8 billion in sales by 2033, with enhancements like wider pavements and added greenery set to begin in autumn 2024.
The surge in retail investment and strategic positioning by luxury brands signify a robust recovery and growth in London’s physical retail sector.
