Despite a decline in shopper traffic, London’s Bond Street remains a thriving and popular shopping destination, showcasing its enduring appeal as one of the world’s premier luxury hubs. The street is known for its high-end offerings and is currently experiencing both major prestigious developments and unique pop-up projects that deviate from the traditional expectations associated with the UK’s luxury scene.
Savills, an international real estate advisor, reports a surge in ambitious refurbishments of retail properties in anticipation of the return of luxury consumers, driven by an increase in London commuter numbers and rising passenger figures at Heathrow Airport.
One recent significant investment is a £10 million refurbishment of store units at 107-110 New Bond Street. Additionally, an innovative graffiti installation has been added at 110, providing an artistic touch to the store’s backdrop. Great Portland Estates (GPE), a prominent landlord, has also transformed a retail space at 95 New Bond Street into an immersive art exhibition in collaboration with renowned British contemporary artist LUAP. The exhibition, titled “The unconscious therapy,” showcases LUAP’s signature motif, The Pink Bear, through photography, paintings, installations, sound, and film. GPE aims to attract footfall to Bond Street by curating spaces that offer experiences beyond traditional retail.
Savills’ research highlights the sustained investor appetite for Bond Street, with prime yields remaining at their pre-pandemic level of 2.75%. This contrasts with other prominent streets in London’s West End, which have experienced a decline of 25-50 bps in indicative prime yields. Bond Street accounts for 55.1% of all retail investment in central London during the first half of the year and has already seen a significant deal in the second half.
Despite reduced tourism levels and concerns about Chinese consumers prioritizing domestic luxury spending, Savills predicts that domestic spend will play a more significant role in the global luxury market in the coming years. London’s status as a top global city for ultra-high-net-worth individuals further supports this forecast. Savills expects domestic spend growth to drive occupational demand on Bond Street.
Anthony Selwyn, co-head of global retail at Savills, emphasizes the enduring investor confidence in Bond Street. He points to ongoing investments in developments at 110 New Bond Street and nearby buildings as evidence of continued interest. Selwyn anticipates that this section of the street will thrive in the coming years, especially with the introduction of Crossrail in early 2022 and the opening of the Mandarin Oriental hotel at Hanover Square, both of which are expected to have a significant impact on footfall. These developments will further enhance Bond Street’s luxury retail offerings and attract new high-end retailers to join the prestigious lineup already present on the street.
In conclusion, London’s Bond Street continues to defy the challenges posed by decreased shopper traffic, proving its resilience and allure as a global luxury retail destination. With ongoing investments, unique experiences beyond traditional retail, and anticipated growth in domestic spend, Bond Street is poised for continued success in the years to come.
Useful links:
– New Bond Street
– Savills
