Despite Looming Brexit, Luxury Brands Bet on London Retail | RetailTechPodcast

Despite Looming Brexit, Luxury Brands Bet on London Retail

As international tourists and ultra high-net-worth Londoners continue to spend, luxury brands are also continuing to open new stores in prime central London locations, notably on Bond Street and surrounding locations in Mayfair, as well as the affluent West London district of Chelsea. Real estate agent Savills, which handles the majority of deals on Bond street, forecasts the number of international luxury brands opening their first-ever store in London this year will outpace 2017. "We feel Bond Street is a bullet-proof market to a point. It is unique in that there is low availability and huge demand, so you create a competitive market all the time. One thing that will certainly happen is [brands] will open fewer stores so the ones they do open have to be more important and if you have one store in a luxe pitch in London you go to one location," says Anthony Selwyn, head of London and international retail at Savills. Executives say luxury is relatively immune and chief executives are taking a long-term bet on London, investing in a market where high-end tourism and its position as a top spot for global brand exposure is set to continue unabated. "You have the best clients from all over the world. You have people shopping from the Middle East, Asia, and the US, of course. People come to London to have amazing retail experiences. I was in London a few days ago - you can feel the energy, the city is very vibrant." "We believe in London as one of the world capitals and how significant it will remain for both tourism and local clients, which we knew we already had. At present, it's difficult to bet against world capitals such as New York City and London." "MSGM is convinced that London will maintain its relevance in the years to come and particularly in this moment it was important to demonstrate to London all the love the city deserves." Read more