London is now the second favourite destination for luxury US retailers to break into the European market.
New research from Savills has found overseas expansion of luxury brands spurred on Europe’s letting activity in the global luxury retail market, with London and Paris acting as favourite stepping stones for brands to enter the market.
Accessible luxury brands have been much more acquisitive in recent years, growing their share of the market from 38 per cent in 2016 to 45 per cent in 2017.
In that year, London took 5.6 per cent of all affordable luxury store openings globally, tied with Milan and ahead of Singapore, Hong Kong, New York and Tokyo.
Savills’ commercial research director Marie Hickey said, “this shift should prove beneficial in terms of occupational demand as these types of brands can support multiple stores in a given city, particularly in the larger European cities of London and Paris”.
Paris topped the European and global rankings in 2017, accounting for 5.9 per cent of all letting activity. In Europe, London and Milan were tied second, each accounting for five per cent of global activity.