Skip to main content Skip to footer

London still attracts retailers despite consumer spending fears

27 10 22 London still attracts retailers despite consumer spending fears hero

The third quarter of this year has seen an increase in retailers looking for space across London compared with the same period in 2021.

The latest Colliers London demand tracker, released exclusively to React News, for the period between July and the end of September showed there were 236 active requirements from retail and leisure tenants looking for space. In the third quarter of 2021, there were 222.

Despite the challenges and concerns around consumer spending that have built over the last few months, the list of requirements has held steady throughout 2022, with a similar number recorded in the second quarter.

27 10 22 London still attracts retailers despite consumer spending fears image 1

Of the active requirements, 40 were new entrants to London, and represented interest from companies based in 20 different countries.

These figures also showed an increase compared to the same period in 2021, while Germany replaced Italy as one of the most common nationalities looking for space in the capital, alongside USA and Australia.

27 10 22 London still attracts retailers despite consumer spending fears image 2

Though volume of requirements is high, the overall space required has reduced over the course of the year. In the first quarter retailers were on the hunt for more than 2m sq ft of space, which has now halved to 1m sq ft, driven by demand from food and drink, fashion and experiential occupiers. However this total does not currently include experiential space.

27 10 22 London still attracts retailers despite consumer spending fears image 3

Over the course of the year Colliers tracked 4.25m sq ft of active requirements, compared to 4.9m sq ft in 2021.

Ellie Grimes in the Central London Retail team said: “There has been a noticeable increase in London requirements from experiential concepts in 2022. We have seen an increase of over 40% compared to 2021 and we expect this to continue to increase. Consumers are placing more value then ever before on experiential retail and this provides a great opportunity for brands to engage with customers beyond simply selling them products.

“The Loewe pop-up takeover at Harrods to celebrate its autumn-winter 22 collection is a great example of retailers pivoting to keep consumers engaged, increasing a brand’s profile through experiential retail concepts, while complementing their traditional bricks and mortar stores.”

However, the average size of the requirement dipped slightly, as retailers reduced their occupational needs by 200 sq ft to around 2,400 sq ft, and F&B by 400 sq ft to 3,300 sq ft.

This article first appeared in React News

View our Retail services

Related Experts

Ellie Grimes

Senior Surveyor

Retail Agency - Central London

London - West End

Ellie joined Colliers in 2018 and  is part of the Central London Retail team where her main focus is on identitfying new brands and experiences looking to establish themselves within London.

Ellie works on a wide range of London Estates  including Church Commissioners, Long Martin, Imperial London, DTIZM, APML and tenants including Santander, Headmasters, Tai Ping Carpets, Carphone Warehouse, Vodafone,  iSmash,  The Source Bulk Foods and iSmash.


View expert

Paul Souber

Co- Head UK & EMEA Retail

Retail Agency - Central London

London - West End

Paul Souber is a highly experienced London retail property expert, and has a particular specialism in the luxury sector.

He advises major London landlords – including The Crown Estate, Grosvenor, The Church Commissioners and Shaftesbury Plc – on how their retail holdings in the capital can be enhanced through leasing and placemaking.

His consultancy also involves advising various leading brands on their property strategy and sourcing the stores which best serve their strategic needs.

During a career in which he has advised on the leasing of more than 1.5m sq. ft. of shopping space, Paul has worked with clients including Yves St Laurent, Roksanda Ilincic, Gina Shoes, Balenciaga, Oliver Bonas, Boux Avenue, Sweaty Betty and Headmasters.

He is Head of London Retail Agency and Co Head of the EMEA Retail Team at Colliers International

View expert

Rebecca Allen

PR Manager

Marketing & Communications

London - West End

I have been working in commercial property communications for over 10 years  having previously worked at CBRE and Savills.

In my role at Colliers I am responsible for the PR of National Capital Markets, London Offices and Investment Property  Management teams as well as Scotland.

My role includes:

  • Creating and exectuing PR plans for business lines that span press, marketing and digital channels
  • Media monitoring and reporting
  • Advising on brand, tone of voice and profile raising 
  • Journalist relationship building through face to face meetings, phone calls day to day assistance with stories
  • Reputation management of the Colliers brand



View expert