Latest research from global real estate advisor, Colliers International, reveals that even in the face of continued economic uncertainty and the woes of Brexit, Central London remains a prime destination for international brands and interest is still growing, as currently, over 50 per cent of stores on core shopping streets are international brands and 30 new retailers have arrived in the last year alone.
In addition, demand from Chinese shoppers shows no sign of waning with average spend up 30 per cent (YTD) to £1,663*.
Paul Souber, Head of Central London Retail at Colliers International commented: “Following the Brexit vote, sterling devalued significantly, making London more attractive to tourists; particularly those from China, the UAE, Saudi Arabia and Kuwait, who quickly began taking advantage of the ‘Brexit bargains’ on offer. Of these, Chinese tourists were the biggest contributor to international sales, accounting for 35% of tourist spend*.
“As a result of the currency-led tourist boom, many retailers noticed an escalation in shopper footfall and we initially saw a rise in the number of active requirements as a result. However, with shopping habits increasingly moving online and an uncertain UK economy slowing the rate of consumer spending, many retailers are feeling financially squeezed and are subsequently focusing more on controlling their overall occupational costs.
“The focus on the bottom line coincides with a recognition from brands that their bricks and mortar stores must be repurposed so that they seamlessly connect and enhance all parts of their retailing platform, be that online or instore.
“In practice this translates to retailers being more discerning over the number, size and location of physical stores and, in turn, these stores become more experiential and personalised.
“As consumers become more time challenged, it is essential that the locations they visit provide them with a convenience led menu of experiences, from great shopping to a huge array of dining and entertainment options, cultural experiences, health and fitness pursuits, relaxation and leisure, all easily interconnected and accessible by transport and digital infrastructure.
“London is naturally suited to meet these challenges as they are already being embraced and executed by the major landowners and stakeholders in the Capital who are curating, enhancing and future proofing the capital so that it remains the best city in the world.”
