Global brands drawn to UK capital for expansion
In spite of the challenging UK retail climate, London is continuing to appeal to the expansion plans of international retailers, with the number of international retailers opening debut stores in the capital increasing significantly in 2018, according to Savills.
The firm notes that last year, 33 international retailers opened debut individual stores in London, up 27% on 2017. Furthermore, this growth looks set to continue throughout 2019, with three new international entrants having opened permanent stores in the first quarter of the year and a further 11 already in the committed pipeline.
While European retailers made up the majority of international brands entering London last year, accounting for a 63.6% share of openings, Asia-Pacific retailers increased their share the most, representing a 15.2% share of new entrants in 2018. In addition, Savills research shows that the number of store openings from Asia- Pacific retailers increased by 400% in 2018 compared with the year before, with debut stores including Chinese retailer Urban Revivo at Westfield London and South
Korea’s Gentle Monster opening on Argyll Street in Soho.
Marie Hickey, retail research director at Savills, said: “Despite the challenges facing the UK retail market, London is continuing to appeal to the expansion plans of international retailers. What’s even more reassuring is its widening appeal to a greater variety of international brands and operators beyond Europe, demonstrated by the increase in Asia Pacific brands and operators opening sites in the city. However, the boost to occupational demand is not universal across all parts of the London market with some retail pitches benefiting more than others.”
