London remains a global retail hotspot as luxury brands target key locations.
- Oxford Street and Bond Street are seeing increased investment and foot traffic.
- Significant rental growth is boosting investor confidence in London’s retail sector.
- Brands on Oxford Street have expanded by nearly 200% in retail space.
- New retail entrants are strengthening London’s position as a shopping hub.
Oxford Street and Bond Street, renowned for their retail allure, continue to be prime targets for luxury brands seeking physical store presence. According to CBRE, a leading global real estate advisor, investment in these iconic streets surged by 71% in Q2 2024, reaching £424 million. Bond Street alone accounted for nearly 60% of London’s total retail investment in the first half of the year, with four significant transactions completed this quarter.
Phil Cann, Executive Director at CBRE, highlighted that Bond Street remains a focal point for luxury brands aiming to establish their physical foothold. With rental growth being realised across various locations, investor confidence is markedly increasing. This is expected to propel investment volumes beyond those recorded last year, signalling robust market optimism.
Oxford Street, amongst the world’s busiest shopping destinations with approximately half a million daily visitors, has witnessed remarkable retailer expansion. In 2024, 19 letting transactions were completed, covering 170,000 square feet of retail space. Brands expanding on Oxford Street have increased their retail footprint by an average of 195%, translating to an additional 8,751 square feet per brand, showcasing a renewed commitment to physical retail.
The influx of new brands, including international names such as Future Stores, Manière de Voir, Activate, and Paris St Germain, underscores the resurgence of physical retail presence in London. Over the past 20 months, 30 new brands have established themselves on Oxford Street, reinforcing the street’s pivotal role in the UK’s retail sector.
Plans to enhance Oxford Street’s appeal further, such as widening pavements and adding new trees, are set to commence in autumn 2024 under the Oxford Street Programme. This initiative, led by New West End Company and Westminster City Council, aims to achieve substantial sales growth by 2033, solidifying London’s status as a premier shopping destination.
London’s retail landscape is thriving, attracting significant investment and new brands, particularly in its iconic shopping streets.
