by For many retailers 2023 was not without its challenges, from a cost of living crisis straining consumer confidence, competing with rivals to cut prices for customers, to unpredictable weather reducing headcount at times.
But despite such headwinds, many businesses have decided to invest in bricks and mortar shops in central London.
James Ebel, vice-chairman of retail-focused real estate consultancy Newmark, says he has been surprised this year by the continued volume of requirements for new stores in London and Europe, particularly from US brands.
Ebel, who has previously advised firms such as Arc’Teryx and Carolina Herrera on store openings in the capital, says: “Given the cost of living crisis, rising interest rates and other challenges, it’s interesting that we haven’t seen any let-up we. the needs of the retailer. There is clearly consumer demand for this.”
Here we take a look at some of the companies that have launched new branches in the capital this year, why and get the latest insight into how trading has been.
Bogner
Upmarket German sportswear label Bogner headed to Mayfair’s Dover Street in December offering personalisation, private shopping and exclusive access to collections only available in three stores in the capital.
It has started as a concept store and the 4,000 square foot store will be permanent in 2024.
Kristof Risse, chief commercial officer at Bogner, says: “We are very excited about our first concept store in London which has opened simultaneously with our new flagship in New York on Madison Avenue and Los Angeles. This location is currently a concept store operated by our company. The Bogner brand already has a great 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. It is 2,100 square feet and chief executive Tom Bugbee says: “London has always been our target in terms of the international market. It is an easier gateway to Europe. The ways of doing business there are similar to the SA, and there is no language. From the success of our wholesale account, we knew it was the right market for us.”
He says the store has been performing as expected for the full year to date. The only disappointment he mentions is that the VAT exemption has not been reinstated to be competitive with the rest of Europe. Bugbee says: “I hope they finally raise the tourism tax in 2024.”
Ar
The Swiss sportswear brand opened its second UK store in early November, a 3,300 sq ft site in Spitalfields Market. That happened when its flagship project in Regent Street opened its doors in February.
Bianca Pestalozzi, EMEA general manager at On, said: “We aim to expand our geographic footprint through controlled, multi-channel growth.”
Pestalozzi says the group is committed to rapidly growing the On community in the UK. She added: “The success of our flagship store on Regent Street, which increases brand awareness and online traffic in Greater London, highlights the power of retail as a key driver. Our stores act as key touchpoints, allowing us to connect with our athletes and our fans. , fostering a vibrant and engaged community. Encouraged by the positive response we have received in the UK, we are excited to expand our retail presence in London.”
The general manager points to the spillover effect of opening new retail doors: “We often see our e-commerce traffic increase as well as sales at our key wholesale partners.”
Paul & Sharks
Italian clothing company Paul & Shark launched a 2,500 sq ft flagship store at 233 Regent Street in September. At the time Andrea Dini, CEO and president of the firm said that “it is an important step for the brand, it is an operation that I strongly believe in, both from a commercial and image point of view”.
Speaking in December he says: “We think that Great Britain and especially London is an international and very interesting city, which is a special ‘marketing tool’. It is one of the most important international cities in the world. For us to have a flagship store at the top of Regent Street, I think it’s important, not only from a turnover point of view but also from an image point of view, that there’s a mix of quality and quantity.”
Rituals
Amsterdam-based beauty brand Rituals set up shop on Oxford Street in September.
Raymond Cloosterman, CEO & founder of Rituals Cosmetics says the company is “very happy” with the opening.
Cloosterman continues: “The Ritual brand is on fire in the UK. In the last eight years we’ve grown from five stores, to 78 by the end of 2023. Of course, Oxford Street has always been our ambition, places like this as well like ours. The store in the Champs-Elysée in Paris is a statement of quality for the brand. So we are very proud to have a beautiful store for our innovative concept on the most famous main shopping street in the capital.”
we are very proud to have a beautiful store for our innovative concept on the capital’s most famous high street
Raymond Cloosterman, CEO & founder of Rituals Cosmetics
Sephora
Beauty retailer Sephora, owned by French luxury goods giant LVMH, has opened its first physical store in the UK since leaving the last ones here in 2005. Doors to a 6,000 sq ft site at Westfield White City opened in March followed by a 5,400 sq ft store in Stratford. last month.
Pauline Dolle-Labbe, director of marketing and e-commerce at Sephora UK, says: “It’s always been our plan to continue investing in stores, because the real magic of Sephora lies within our beauty playground. Our first launch in White City was a huge success and the demand for Sephora across the UK was immediately clear, so we knew we had to continue this expansion.”
Dolle-Labbe says White City has become “a bit of a destination” for those in and out of London. There is also a local, loyal following.
She says the results since Stratford started welcoming shoppers have been “unbelievable”. “When it opened, there were thousands of us queuing to be the first people to see the store even camping out.
And four more, as the Evening Standard reported earlier in 2023…
High-end French candle brand Diptyque has agreed a deal to open a new store on New Bond Street in London.
Danish jeweler Georg Jensen has joined other high-end brands in bidding for a new flagship store on Bond Street.
Aquazzura, the luxury shoe brand worn by stars including Nicole Kidman, has joined New Bond Street.
High Street chain TK Maxx, parent of TJX Europe, has taken over part of the former Debenhams space at Westfield London.
