For many retailers 2023 has not been without challenges, from the cost of living crisis weighing on consumer confidence, competition with rivals to bring down prices for customers, to unpredictable weather knocking footfall at times.
But despite such headwinds, a host of businesses decided to invest in central London bricks and mortar stores.
James Ebel, vice chairman of retail-focused real estate consultancy Newmark, says he has been surprised this year by the continued number 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, adds: "Given the cost of living crisis, rising interest rates and other challenges it is interesting that we have not seen a let up in retailer requirements. There is clearly consumer demand for this."
Here we look at just some of the companies that launched new branches in the capital this year, why and also get the latest insight on how trade has been.
Bogner
Upmarket German sports label Bogner headed to Mayfair's Dover Street in December offering personalisation, private shopping and exclusive access to collections only available through store in the capital.
It has started as a concept store and the 4,000 sq ft shop becomes permanent in 2024.
Kristof Risse, chief commercial officer at Bogner says: "We are really excited about our first concept store location in London which opened simultaneously to our new flagship in New York on Madison Avenue and Los Angeles. This location is currently a concept store operated by our partner Altimus. 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."
The luxury fashion and bridal brand opened its London flagship on South Audley Street in June. It is 2,100 sq ft and chief executive Tom Bugbee says: "London was always our goal in terms of the international market. It is an easier gateway to Europe. The ways of doing business there are similar to the US, and there is no language barrier. From the success of our wholesale accounts, we knew it was the right market for us."
He adds that overall year to date, the store has been performing in line with expectations. The only real disappointment he points to relates to the VAT exemption that has not been reinstated to keep competitive with the rest of Europe. Bugbee adds: "Hopefully they will finally lift the tourist tax in 2024."
On
The Swiss sports brand opened its second UK store in early November, a 3,300 sq ft site in Spitalfields Market. That came after its Regent Street flagship opening its doors in February.
Bianca Pestalozzi, general manager EMEA at On comments: "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 adds: "The success of our Regent Street flagship store, amplifying brand awareness and online traffic in Greater London, underscores the power of retail as a key driver. Our stores serve as important touch points, allowing us to connect with our athletes and fans, fostering a vibrant and engaged community. Encouraged by the positive response we’ve received in the UK, we’re excited to extend our retail presence in London."
The general manager points to a spill over effect when we new retail doors open: " We often see our ecommerce traffic increase as well as sales at our key wholesale partners."
Paul & Shark
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 it was an "important step for the brand, it’s an operation I strongly believe in, both from a commercial and image point of view".
Speaking in December he says: “We think that Great Britain and specifically London is an international and very interesting city, a special ‘marketing tool’. It’s one of the most important international cities in the world. To have a flagship store at the upper part of Regent Street, I think it’s important, not only from the point of view of turnover but also from an image point of view, actually there is a combination of quality and quantity.”
Rituals
Amsterdam-founded beauty brand Rituals set up a 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 Rituals brand is on fire in the UK. In the last eight years we grew from five stores, to 78 by the end of 2023. Naturally, Oxford Street has always been our ambition, locations like this as well as our store at the Champs-Elysée in Paris are a quality statement for the brand. So we are very proud to have a beautiful store for our innovative concept on the capital’s best-known shopping high street."
we are very proud to have a beautiful store for our innovative concept on the capital’s best-known shopping high street
Sephora
Owned by French luxury goods giant LVMH, beauty retailer Sephora this year opened its first UK physical stores since exiting its last ones here by 2005. Doors opened to a 6,000 sq ft site at Westfield White City in March and a 5,400 sq ft Stratford shop followed last month.
Pauline Dolle-Labbe, marketing and ecommerce director at Sephora UK, says: "It was always our plan to keep investing in stores, as the real magic of Sephora lies within our beauty playgrounds. Our first launch in White City was a massive success and the demand for Sephora’s across the UK was instantly apparent, so we knew we had to continue this expansion."
Dolle-Labbe says White City has become "somewhat of a destination" for those both inside and outside of London. There is also a local, loyal following.
She adds that the results since Stratford started welcoming shoppers "have been unbelievable". "Upon opening, we had thousands join the queue to be some of the first to see the store with some even camping out. It is continuing to thrive, and although it is still early days, we expect this momentum to keep building."
And four more, as reported by the Evening Standard earlier in 2023...
High-end French candle brand Diptyque agreed a deal to open a new store on London’s New Bond Street.
Danish jeweller Georg Jensen joined other upmarket brands to ink a deal for a new flagship store on Bond Street.
Aquazzura, the luxury shoe brand that has been worn by stars including Nicole Kidman, stepped into New Bond Street.
High Street chain TK Maxx, whose parent is TJX Europe, took on some of the former Debenhams space at Westfield London.
