London remains a premier destination for luxury retailers seeking new locations, with Oxford Street and Bond Street at the forefront.
- Investment in London retail has surged, with Q2 2024 volumes up by 71%, reaching £424 million.
- Bond Street is a focal point for capital influx, accounting for nearly 60% of the year’s retail investment.
- Oxford Street has witnessed significant retail upsizing, with 19 letting transactions and 30 new brands entering the market since 2023.
- A planned revamp of Oxford Street aims to enhance its appeal with wider pavements and new trees, promising a £32.8bn sales uplift by 2033.
London continues to solidify its status as a sought-after location for luxury brands establishing physical stores, with Oxford Street and Bond Street leading the charge. As per the latest data from CBRE, a prominent global real estate advisor, investment volumes in London’s retail sector have surged by an impressive 71% quarter on quarter, culminating in a substantial £424 million in Q2 2024 alone.
Bond Street has emerged as a pivotal hub for investment activities, reflecting a robust confidence from luxury brands looking to entrench their presence in the heart of London. The street has seen four significant transactions this quarter, contributing to almost 60% of total retail investments for the first half of the year, according to CBRE’s report. Phil Cann, executive director at CBRE, highlights the continuous strong investment in central London locations, particularly noting luxury brands ‘beelining’ for New Bond Street as they strive to establish their physical presence.
Oxford Street has notably experienced a wave of retail expansion, with 19 letting transactions completed in 2024, encompassing a total of 170,000 square feet. Brands moving to this bustling street since early 2023 have upsized their physical spaces by an average of 195%, equating to an additional 8,751 square feet. This growth epitomizes a renewed commitment to physical retail spaces, further evidenced by the introduction of 30 new entrants within the past 20 months, including brands such as Future Stores and Manière de Voir.
The Oxford Street Programme, initiated by New West End Company (NWEC) in collaboration with Westminster City Council, is set to commence in autumn 2024. It aims to revitalize the area with improvements like wider pavements and newly planted trees, targeting a projected uplift in sales to £32.8 billion by 2033. This initiative represents a forward-thinking approach to enhancing one of London’s most iconic shopping areas, ensuring its continued allure to both shoppers and investors alike.
London remains at the epicenter of luxury retail investment, with strategic initiatives promising to further strengthen its market presence.
