Luxury Retail Boom Drives Rent Surge on Iconic London Street
- Bond Street regains title as Europe’s priciest shopping street
- Prime rents on Bond Street increased by 20% to £13,162 per sq m
- Milan’s Via Monte Napoleone now at £12,872 per sq m
- Bond Street ranks third globally behind Hong Kong’s Tsim Sha Tsui and New York’s Fifth Avenue
- Luxury brands like Chanel, Louis Vuitton, Moncler, and Rolex anchor the area
- Watches of Switzerland opened a flagship Rolex store on Old Bond Street
- Moncler unveiled new store on New Bond Street in December
- Savills co-head Anthony Selwyn: luxury brands taking long-term strategic view
- Brands focusing on domestic markets amid pandemic
- Heightened demand may push prime rents upwards, growth could level out with availability tightening
London’s Bond Street has reclaimed its position as the most expensive shopping street in Europe, with prime rents soaring by 20% last year to £13,162 per square meter. This puts it ahead of Milan’s Via Monte Napoleone at £12,872 per sq m, according to Savills data. Bond Street now ranks third globally in retail rental value, trailing only Hong Kong’s Tsim Sha Tsui and New York’s Fifth Avenue. The surge in rents is attributed to the resurgence of luxury retail demand post-pandemic, as high-end brands reposition themselves for long-term growth. Luxury names like Chanel, Louis Vuitton, Moncler, and Rolex continue to anchor the area. Watches of Switzerland opened a four-story Rolex flagship on Old Bond Street last month, while Moncler unveiled a new store on New Bond Street in December. Savills’ co-head of global retail, Anthony Selwyn, stated that luxury brands are taking a longer-term strategic view and recalibrating portfolios to get closer to consumers. He added that, amid reduced international travel during the pandemic, brands have focused more on large, affluent domestic markets. As competition in the grocery sector heats up with Tesco’s announcement of lowering prices, Bond Street’s prime rents may continue to rise, though growth could level out as availability tightens.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Bond Street regaining its title as the most expensive shopping street in Europe, citing data from Savills and mentioning specific luxury brands that are present in the area. It also includes expert opinions on the trend of luxury brands focusing on domestic markets and the potential for increased competition in the retail sector.
Noise Level: 3
Noise Justification: The article provides relevant information about Bond Street regaining its title as the most expensive shopping street in Europe and discusses the factors contributing to this trend, such as increased luxury retail demand and rising rents. It also mentions specific brands that have opened stores in the area. However, it briefly touches on Tesco’s decision to lower prices, which is unrelated to the main topic and could be considered noise.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the rise in rents on Bond Street, a prestigious shopping location, and how it has regained its title as the most expensive shopping street in Europe. This is relevant to financial topics as it pertains to commercial real estate and retail rental values. It also mentions luxury brands like Chanel, Louis Vuitton, Moncler, and Rolex that are driving this increase in demand. However, there is no direct impact on specific financial markets or companies mentioned.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event found in the text and nothing happened in the last 48 hours.
www.retailgazette.co.uk