Chanel’s iconic store on Bond Street, a symbol of luxury and elegance, is now up for sale, signaling a significant moment in the West End retail property market in London. Over the past few years, Bond Street has consistently ranked as one of the most exclusive and expensive retail destinations globally. However, the landscape has shifted dramatically due to the impact of the global pandemic, causing investors to reassess the future of luxury retail in this prime location.
The three-story Chanel store, which is currently owned by a Swedish pension fund, is being listed for sale with JLL overseeing the process and an asking price exceeding £240 million, according to reports from The Times. With a noticeable decline in sales volumes of West End retail properties as a result of the absence of tourists and office workers, this sale will serve as a crucial barometer for the resilience of the luxury retail sector in London.
In spite of the challenges presented by the ongoing health crisis, there has been some noteworthy activity within the West End property market. Balenciaga recently secured a lease on New Bond Street, while Brunello Cucinelli opened a new store in the area. Furthermore, Celine and Versace have expanded their footprint on Bond Street. There is speculation that Chanel might decide to purchase the property themselves, following the example set by Prada with their Bond Street store.
The appeal of Bond Street to property investors is evident in its ranking as the third most expensive retail location worldwide based on rental rates in 2019. The presence of prestigious luxury brands has solidified the street’s reputation as a lucrative income source, particularly when compared to neighboring Oxford Street. Chanel’s flagship boutique on Bond Street, which debuted in 2013 as the brand’s largest globally at the time, was overshadowed by the unveiling of an even larger store in New York City, setting new benchmarks for size and grandeur.
As the sale of Chanel’s Bond Street store unfolds, it will undoubtedly have a profound impact on the future trajectory of the West End retail property market. With interest from private international investors and the potential for Chanel to acquire the property, the focus will be on the resilience and growth prospects of luxury retail in London’s prestigious shopping district.
For further information on the luxury retail property market in London, you can visit Financial Times or Savills.
