For many retailers, 2023 has not been without challenges, from the cost of living crisis weighing on consumer confidence, competing with rivals to drive down prices for customers, to unpredictable weather conditions that sometimes cause footfall declines.
But despite these headwinds, a large number of companies decided to invest in physical stores in central London.
James Ebel, vice chairman of retail-focused real estate consultancy Newmark, says he has been surprised this year by the continued number of demands for new stores in London and Europe, especially from American brands.
Ebel, who has previously advised companies such as Arc'Teryx and Carolina Herrera on store openings in the capital, added: "Given the cost of living crisis, rising interest rates and other challenges, it is interesting that we have not seen a slowdown in the demands of retailers. There is clearly consumer demand for this."
Here we look at just some of the companies that have opened new branches in the capital this year, why, and also get the latest insight into how trading has been.
BognerChic German sports label Bogner moved into Mayfair's Dover Street in December, offering personalisation, private shopping and exclusive access to collections only available through stores in the capital.
It started as a concept store and the 4,000 m² store will become permanent in 2024.
Kristof Risse, Chief Commercial Officer at Bogner says: "We are very excited about our first concept store location in London, which opened simultaneously with our new New York flagship on Madison Avenue and Los Angeles. This location is currently a concept store that is managed by our partner Altimus. The Bogner brand already has a large 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 LhuillierThe luxury fashion and bridal brand opened its London flagship on South Audley Street in June. It is 2,100 square meters in size and CEO Tom Bugbee says: "London was always our target in terms of the international market. It is an easier gateway to Europe. The ways of doing business there are similar to those in the US, and there is not a language. With the success of our wholesale accounts, we knew this was the right market for us."
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He adds that the store has performed in line with expectations so far. The only real disappointment he points out relates to the VAT exemption which has not been reintroduced to remain competitive with the rest of Europe. Bugbee adds: "Hopefully they will finally lift the tourist tax in 2024."
The Swiss sports brand opened its second UK store, a 300 sqm site in Spitalfields Market, in early November. This came after the Regent Street flagship opened its doors in February.
Bianca Pestalozzi, Managing Director EMEA at On, said: "We aim to expand our geographic footprint through controlled growth across multiple channels."
Pestalozzi says the group is committed to rapidly growing the On community in Britain. She added: "The success of our flagship store on Regent Street, which is increasing brand awareness and online traffic in Greater London, underlines the power of retail as a key driver. Our stores serve as key touchpoints, allowing us to connect with our athletes and fans, fostering a vibrant and engaged community. Encouraged by the positive response we have received in the UK, we are delighted to expand our retail presence in London."
The general manager points to a spillover effect as new stores open: "We often see our e-commerce traffic increase, as well as sales with our key wholesale partners."
Italian clothing company Paul & Shark launched a 2,500 square meter flagship store at 233 Regent Street in September. Andrea Dini, CEO and president of the company, said at the time that it was an "important step for the brand, it is an operation in which I strongly in faith, both from a commercial and image point of view".
In his speech in December he said: "We think that Britain and specifically London is an international and very interesting city, a special 'marketing tool'. It is one of the most important international cities in the world. To have a flagship store in the upper part of Regent Street I think it is important, not only from a turnover point of view but also from an image point of view: there is actually a combination of quality and quantity."
RitualsThe beauty brand Rituals, founded in Amsterdam, opened a store 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 Great Britain. Over the past eight years we have grown from five stores to 78 by the end of 2023. Of course, Oxford Street has always been our ambition, locations like this and our store on the Champs-Elysée in Paris are a quality statement for the brand. We are therefore very proud that we have a beautiful store for our innovative concept in the most famous shopping street in the capital."
We are very proud that we have a beautiful store for our innovative concept in the most famous shopping street in the capital
Raymond Cloosterman, CEO and founder of Rituals Cosmetics
SephoraBeauty retailer Sephora, owned by French luxury goods giant LVMH, opened its first physical stores in Britain this year since the last store here was abandoned in 2005. In March, the doors opened to a 6,000 sq ft site in Westfield White City and a 5,400 sq ft Stratford store followed. last month.
Pauline Dolle-Labbe, marketing and e-commerce director at Sephora UK, said: "It was always our plan to continue investing in stores as the real magic of Sephora lies in our beauty playgrounds. Our first launch in White City was a huge success and demand for Sephora's in the UK was immediately evident, so we knew we had to continue this expansion."
Dolle-Labbe says White City has become 'something of a destination' for people both inside and outside London. There is also a local, loyal following.
She adds that the results since Stratford started welcoming shoppers "have been incredible". "When it opened, thousands lined up to be among the first to see the store, and some even camped out. The store continues to thrive, and while it's still early days, we expect this momentum to continue to build."
And four more, as reported by the Evening Standard earlier in 2023...High-end French candle brand Diptyque has signed a deal to open a new store on New Bond Street in London.
Danish jeweler Georg Jensen joined other luxury brands to strike a deal for a new flagship store on Bond Street.
Aquazzura, the luxury shoe brand worn by stars Nicole Kidman, among others, stepped onto New Bond Street.
High Street chain TK Maxx, whose parent company is TJX Europe, took part of the former Debenhams space in Westfield London.
