For many retailers, 2023 has not been without challenges, from the cost of crises negatively impacting consumer confidence, to competing with rivals to lower prices for customers, and the occasional pounding of unpredictable weather conditions.
However, despite such negativities, many businesses have decided to invest in physical stores in central London.
James Ebel, vice president of retail-focused real estate consultancy Newmark, says he has been surprised by the increased demand for new stores in London and Europe this year, especially from US brands.
Ebel, who has previously advised firms such as Arc’Teryx and Carolina Herrera on store openings in the capital, adds: “Given the cost of living crisis, rising interest rates and other challenges, it is interesting that we have not seen an easing of retailer requirements. There is clearly consumer demand for this.” .”
Here we look at just some of the companies opening new branches in the capital this year, as well as get the latest insight into what business is like.
Bogner
Luxury German sports brand Bogner headed to Mayfair’s Dover Street in December, offering personalisation, exclusive shopping and exclusive access to collections only available in stores in the capital.
The store, which started as a concept store, will enable the 4,000 square meter store to become permanent in 2024.
Bogner Commercial Director Kristof Risse says: “We are really excited about our first concept store location in London, opening at the same time as our new flagship on Madison Avenue in New York and Los Angeles. This location is currently a concept store operated by our partner Altimus “The Bogner brand already has a large customer base in London and we will use the concept store project to further develop our brand awareness, with plans to expand across the UK in the future.”
Monique Lhuillier
The luxury fashion and bridal brand opened its London flagship on South Audley Street in June. The 2,100 square meter space and CEO Tom Bugbee says: “London was always our target in terms of the international market. It’s an easier gateway into Europe. The way they do business there is similar to the US and there’s no language. We know from the success of our wholesale accounts that this is the right market for us.” We knew.”
He adds that the store has generally performed in line with expectations since the beginning of the year. The only real disappointment he points out relates to the VAT exemption, which has not been refunded to remain competitive with the rest of Europe. Bugbee adds: “I hope they finally repeal the tourist tax in 2024.”
Open
The Swiss sports brand opened its second UK store in a 3,300 square meter space in Spitalfields Market in early November. This comes after the Regent Street flagship opened its doors in February.
“We aim to expand our geographical footprint through controlled, omni-channel growth,” says Bianca Pestalozzi, managing director of On EMEA.
Pestalozzi says the group is committed to rapidly growing the On community in the UK. He adds: “The success of our Regent Street flagship store, which has increased brand awareness and online traffic across Greater London, underlines the power of retail as a key driver. Our stores serve as key touchpoints allowing us to connect with our athletes and fans in a lively, engaging environment.” “We encourage the community. Encouraged by the positive response we’ve received in the UK, we’re excited to expand our retail presence in London.”
The general manager points out the spillover effect that occurs when new retail doors open: “We often see our e-commerce traffic increase as well as sales at our key wholesale partners.”
Paul and the Shark
Italian clothing company Paul & Shark opened its 2,500-square-foot flagship store at 233 Regent Street in September. At the time, the firm’s CEO and president, Andrea Dini, said it was “an important step for the brand, an operation I strongly believe in, both commercially and in terms of image.”
Speaking in December, he said: “We think that Great Britain, and London in particular, is an international and very interesting city, a special ‘marketing tool’. It is one of the most important international cities in the world. I think having a flagship store at the top of Regent Street is important not only in terms of turnover but also in terms of image, it’s actually a combination of quality and quantity.
rituals
Amsterdam-based beauty brand Rituals opened a store on Oxford Street in September.
Raymond Cloosterman, CEO and founder of Rituals Cosmetics, said the company was “very happy” with the opening.
Cloosterman continues: “The Rituals brand is on fire in the UK. We’ve grown from five stores in the last eight years to 78 stores by the end of 2023. Naturally Oxford Street has always been our passion, places like this and our aim is the Champs-Elysée in Paris.” “The store at is an expression of the quality of the brand. Therefore, we are very proud to have a beautiful store for our innovative concept on the capital’s most well-known shopping street.”
We are proud to have a beautiful store for our innovative concept on the capital’s most famous shopping street
Raymond Cloosterman, CEO and founder of Rituals Cosmetics
Sephora
Beauty retailer Sephora, owned by French luxury goods giant LVMH, opened its first physical store in the UK this year after exiting its last stores there in 2005. The doors of a 6,000 sq ft space opened at Westfield White City in March, followed by a 5,400 sq ft Stratford store. last month.
Pauline Dolle-Labbe, marketing and e-commerce director at Sephora UK, says: “It was always our plan to continue to invest in stores as the real magic of Sephora lies in our beauty playgrounds. Our first launch in the White City was a huge success and Sephora’s across the UK.” “The demand for it was immediately apparent, so we knew we had to continue this expansion.”
Dolle-Labbe says the White City has become “a bit of a destination” for those both in and outside London. It also has a local and loyal following.
He adds that the results since Stratford began welcoming shoppers have been “incredible.” “After opening, thousands of people lined up to be among the first to see the store, some even camped out. It continues to evolve and although it’s still early days, we expect this momentum to continue to build.”
And four more, the Evening Standard reports, in early 2023…
High-end French candle brand Diptyque has signed a deal to open a new store on London’s New Bond Street.
Danish jeweler Georg Jensen has joined other luxury brands to sign a deal for a new flagship store on Bond Street.
Aquazzura, the luxury shoe brand worn by stars including Nicole Kidman, stepped into New Bond Street.
High Street chain TK Maxx, whose parent company is TJX Europe, has taken over part of the former Debenhams space at Westfield London.