An extraordinary influx of international retail brands into the best shopping streets in London has left domestic shops on Bond Street and Regent Street in the minority for the first time in their history.
Research from Colliers International shows that nearly two thirds of retailers on Oxford Street originate from the UK but on Regent Street and Bond Street domestic brands are now in the minority.
Paul Souber, Head of Central London Retail Agency at Colliers International comments: “The internationalisation of London’s shopping scene is unstoppable: on Regent Street nearly one-in-every-four of the retailers are now American brands, and they are being joined by concepts from all over the world. It’s tremendous that London can now offer this ‘United Nations of shopping’”.
This level of occupier demand is inevitably driving rents up and there seems to be no immediate ceiling on their upward progress. Some of the most substantial rises are being seen on streets that were once thought of as not being particularly strong shopping pitches. In the past 12 months, prime rents on Dover Street have risen by 43%.
Commenting on the rental increases, Paul Souber observes: “Incredibly, despite the view at the beginning of the year that retail rents in London were peaking, 2014 has seen rental growth of 25%+ in several prime locations as retailer demand – particularly from the luxury brands – proliferates.”
The Central London Retail Health Check research also reports that the supply of available shops across the capital’s prime locations is at a record low and has produced the sharpest fall in vacancy since 2007.