Kering exceeds UK rent record with YSL’s new Bond Street store

Kering is set to pay a record breaking £13 million rent after agreeing a lease for a new Yves Saint Laurent store on Bond Street.

Kering will reportedly pay out over £13 million per year for the six-story central London property, overtaking Ralph Lauren’s previous record-breaking rent of £11 million, set in 2016.

Kering, which also owns Bottega Veneta, Balenciaga and Gucci, beat its rival luxury houses LVMH and Richemont for the store on the corner of Grafton Street.

Yves Saint Laurent’s new site is owned by the investment firm held by the families of property investors David Gabbay and Eli Shahmoon, also known as O&H Properties. The landlord was seeking offers of over £9 million a year, as was advised by property agents from CBRE.

French luxury group Kering published its full-year financial results for 2022 in February 2023, revealing steady growth with revenues totalling £18.05 billion, up by 15% year-on-year. EBITDA came in at £6.4 billion, up 12% compared to 2021. Net income stood at £4.96 billion, up by 14% year-on-year.

Individually, Yves Saint Laurent's revenue stood at £2.9 billion (€3.3 billion), up by 31% year-on-year.

Bond Street

Despite the UK's unstable economy, luxury category clientele has been largely unaffected by the cost-of-living crisis, with several high-end brands continuously raising prices under the guise of inflation.

François-Henri Pinault, Chairman and Chief Executive Officer, commented on its finances: "Together, we nurture the desirability and exclusivity of our brands, so they all achieve market positions commensurate with their unique heritage and recognised creativity. In an environment that remains uncertain, I have no doubt that 2023 will be another year of success for our Houses and of growth for our group."