While the high street flounders, Bond Street prospers. Why is that?
While the majority of UK cities are struggling to deal with the implosion of their high-streets, London is a juggernaut that keeps people spending. Thanks to tourist dollars and and an increasingly high-spending visitor, Bond Street, arguably London’s premier luxury shopping street, has seen a raft of new openings hoping to tap into London as the global retail destination. From Alexander McQueen to Loewe, this historical street has seen glorious new retail spaces tailored to this exclusive location open to entice more money from shoppers.
The Office for National Statistics has just released the final International Passenger Survey (IPS) results covering 2018 and it’s still looking good for London. While the number of visits to the UK in 2018 fell slightly (-3%) - 2017 was a record - to 37.9 million, the data from the last 10 months shows visitors spending huge amounts and are visiting Bond Street, in particular.
Data from Global Blue, a tourism shopping tax refund company headquartered in Nyon, Switzerland, shows that the average spend on Bond Street among international visitors increased by 4% year-on-year from January to October 2018. International shoppers spent a huge average of £1,341 per transaction during this time.
Global Blue has also just opened its first VIP Globe Shopper Lounge on Albemarle Street in Mayfair, just a stone’s throw from Bond Street. According to its figures, the top spenders were visitors from the UAE, Qatar and Hong Kong. UAE shoppers spent £2,074 per transaction, up 19% year-on-year. Qatari shoppers spent £1,964 per transaction (up 7%), while Hong Kong shoppers spent £1,837 per transaction (up 15%).
Interestingly, the biggest increase was seen amongst Indonesian visitors, averaging £1,551 per transaction, up 20% compared to 2017.
Paris is London’s closest luxury shopping competition but the "Yellow Vests" or Gilet Jaunes protests have been affecting its attractiveness and is putting off visitors. "We lost between one and two growth points in 2018 due to the yellow vests," said Mathieu Grac, Global Blue's vice president of intelligence strategy.
The weakness of the pound is making shopping in London more attractive and better value for money. The Chinese, in particular, have always chosen Paris over London, but this could be starting to change with new stats show record breaking results for the end of 2018 for London. Visits to the UK from China in this period were up 52% to 94,000 – the 9th consecutive record quarter for visits. These visitors spent £160 million in the UK between October and December 2018 – 30% up compared to the same period in 2017. In total there were a record 391,000 visits from China to the UK in 2018, up 16% on 2017.
Overall, UK visitor spend in 2019 is forecast to be £24.9bn, up 7.8%, on a forecast of 38.8m visitors.
While many designer brands are closing stores and trimming their global retail network, others are realising that in order to stay ahead, you need to invest heavily in the world’s finest locations. The days of copy-cat, identikit stores are over and brands know they need to make something unique for its location.
Proving this point is the new “Casa Loewe”. The Spanish brand, Loewe, owned by LVMH, and famous for its Puzzle bags, has opened a three-storey boutique designed in the vision of creative director, Jonathan Anderson. Like an art gallery with clothes, but with a personality and warmth, the London store features work by a selection of internationally renowned artists, including three oak sculptures by Ernst Gamperl (winner of the LOEWE FOUNDATION Craft Prize in 2017) alongside 15 photographs by Alair Gomes, the “Vulcano Table” by Anthea Hamilton, a long- standing LOEWE collaborator, William Turnbull’s 1956 sculpture “Idol 4” and Grayson Perry’s “Mum and Dad” vase.
It feels a very creative space and is one of the few luxury boutiques on Bond Street to give you this full idea of a lifestyle. The sales assistant I spoke to said Anderson was often in the store talking to them through the product and also making sure things were working correctly. She also said they had a great many Chinese customers.
Further down Bond Street is the new Celine menswear boutique. The first time Celine has done menswear under new creative head, Hedi Slimane, it feels very déjà vu in the Saint Laurent mould and looks like all those other marbled minimal retail palaces from brands such as Neil Barrett or End Clothing in Soho. On the corner of New Bond Street and Grafton street, in the old Boucheron store, it is exactly what fans of Slimane will want and the quality of the clothes does look good. Downstairs is a compact tailoring area and while none of the extra skinny clothes had a price tag on, the raised front doors are automatic, just in-case those super-skinny rockstars don’t have enough strength to open them. Disappointingly, this concept will look the same the world over.
Into Old Bond Street, Alexander McQueen has amalgamated all three of its London stores into the large, former DKNY outlet. The three-storey boutique is a beautiful, sweeping space by Chilean architect Smiljan Radic, his first retail project. It truly flows with giant glass tubes linking the floors and acres of matt walnut covering every surface including the two spiral staircases.
The ground floor is home to womenswear and the first floor to menswear. The top floor is like a museum, probably hoping to capitalise on the popularity of "Savage Beauty" [the highly popular McQueen retrospective exhibition], it illustrates the artistry of the current collections while being dotted with archive pieces. This area will also be used to host a programme of exhibitions and talks aimed specifically at inspiring students. It left me with a renewed respect of the work of the brand which I’ve often dismissed since McQueen’s death. There was a men’s coat, hand embroidered with silver graffiti, on sale for £100,000.
Stella McCartney has moved her store from the Edward Barber & Jay Osgerby designed Bruton Street to Old Bond Street. A difficult space, it is linked by a huge metal staircase reminiscent of the tanks at Tate Modern. More concrete and terrazzo, the front ground floor is peppered by giant boulders and moss. A small glade of silver birches decorates a roof garden and “Airlabs” technology makes this the first indoor commercial space in London with the cleanest air possible.
The store carries all the brand’s collections including women’s and menswear ready-to-wear, accessories, lingerie, swimwear, kids, eyewear, fragrance and adidas by Stella McCartney. Stella McCartney said of the location: “Old Bond street, it’s probably one of the most prestigious retail locations in the world. And for me being born and bred in London and having our business headquarters there and design studio, it’s an incredible honour for us. This store really tells the story of the World of Stella McCartney; incorporating sustainability, fashion and luxury.”
Louis Vuitton’s giant Bond Street store is also being refurbished and will hopefully offer something bespoke to this prestigious location.
What this group of shops show is the huge investment still going into physical retail. If you’re going to entice those shoppers, you'll need to offer something original, something they'll want to investigate and explore and, ultimately, an experience of buying something truly great and memorable. By working and competing as a group, it gives more incentive to brands and people to make this the greatest destination and a positive cycle of openings and continued openings will keep this firmly as one of the most thriving luxury retail destinations in the world.