The demand for retail space in London has surged by 25% year-on-year.
- In the first quarter, there were 356 active store requirements, up from 284 last year.
- The food and beverage sector accounted for 146 requirements, with fashion at 57.
- Pop-up space demand is decreasing, signalling confidence in permanent spaces.
- New entrants from the US, Scandinavia, Italy, and France are entering the UK market.
The latest figures from Colliers’ Central London Demand tracker reveal a notable 25% increase in demand for retail spaces across London, with 356 active store requirements recorded in the first quarter of the year, compared to 284 during the same period last year. This increase represents a significant demand for just under 1,000,000 square feet of retail space.
Of the sectors driving this demand, the food and beverage industry leads with 146 requirements, followed by the fashion retail sector with 57, and leisure and experiential operators with 55. This compares with figures from the first quarter of 2023, which recorded 87 for food and beverage, 50 for fashion, and 36 for leisure, indicating a positive trend for these sectors.
In terms of geographic distribution, fashion retail demand is concentrated in key areas such as Marylebone, Soho, and the West End, each accounting for 12 requirements. Other areas such as Knightsbridge, Covent Garden, and Islington also show significant activity. A noteworthy trend is the emergence of new market entrants from the United States, Scandinavia, Italy, and France, contributing to a dynamic retail landscape.
Meanwhile, there has been a reported 10% year-on-year decline in the demand for pop-up spaces as of April. This decline is interpreted as a reflection of renewed confidence among retailers to invest in more permanent retail solutions, highlighting the stability and potential longevity of the retail market in London.
Paul Souber, head of central London retail at Colliers, commented on these trends, emphasising that the data illustrates London’s global appeal as a vibrant retail and leisure destination. According to Souber, “We’re seeing both well-established brands and innovative new names all seek space across the city, with London’s diverse retail offering providing opportunities not only in the central hotspots, but also across the city’s standout neighbourhood locations.”
The increase in demand for retail space in London underscores the city’s enduring appeal as a leading global retail destination.
