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London tops global league for luxury store openings

Lauretta Roberts
21 February 2017

London was the world's top destination for luxury store openings in 2016, according to property group Savills latest Global Luxury Report.

The UK capital boasted 41 new openings for luxury brands last year (of which 15 were the respective brands' first London store), compared to 36 for Paris and 31 in both New York and Dubai.

London's high tourist footfall, which has been boosted by the slump in sterling following last June's Brexit vote, and its use as a "stepping stone" into the US by European brands have aided its appeal, according to Savills. London is also a favoured destination of Chinese tourists who buy 40% of their luxury goods abroad.

"A significant proportion of luxury goods are now purchased outside a shopper’s home market, particularly those of Chinese consumers, reinforcing the importance of destination cities," said Savills commercial research director Marie Hickey. "This was apparent in 2016, when all of the key established global retail destinations saw more than 20 luxury brand store openings."

Savills head of central London retail Anthony Selwyn, added that London's position was expected to remain strong moving forward but other retail destinations in emerging markets will increase in popularity.

"The role of a specific destination in brand building and enhancing the customer experience remains key, and the heritage of London and Paris saw these cities rank first and second for new luxury openings last year. With international travel expected to double by 2030, appetite among luxury retailers to expand in key markets will remain strong, though we expect to see several of the emerging luxury markets gain more market share," he said.

Many central London retail destinations have been undergoing facelifts and repositioning in recent years in a bid to attract more international brands, including Regent Street, St James's and Covent Garden.

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