Bond Street has changed significantly over the last five years. While some headlines have focused on rental growth and brands leaving the street, the more subtle and sustainable change has been the intensification of core luxury brand activity.
Our research shows that the proportion of stores occupied by super luxury retailers on Bond Street is now 73.9 per cent, up from 62.8 per cent in 2012. The last five years have also seen a squeeze in the presence of accessible luxury and aspirational mid-market brands on the street, which now account for 21.6 per cent and 4.5 per cent of stores respectively, compared with 25.7 per cent and 11.5 per cent in 2012.
A number of these have moved to more suitable locations such as Regent Street or concentrated on the area north of Brook Street, where 63 per cent of brands are now accessible luxury. This may increase even further to around 75 per cent following the completion of the Hanover Square development in 2018.
Retailer drift and an overall reduction in accessible luxury brands are playing a key role in driving Bond Street’s reputation as a super luxury destination and the extension of its prime pitch. It also allows other areas to potentially capture in part a more luxury profile, including the traditional Mayfair locations, but also Oxford Street close to Selfridges and South Molton Street.
In terms of product mix, Bond Street has seen relatively little change and remains dominated by fashion and footwear, with 46.5 per cent of stores falling into this category in 2017 compared with 48.5 per cent in 2012. However, monobrand watch boutiques and specialist bag and luggage brands have increased the proportion of stores they occupy to 10.1 per cent and 3.1 per cent respectively.
The intensification of luxury retailers on Bond Street is also apparent in the number of store openings under way. Based on known commitments, we expect 12 to have opened by year end, in line with the previous 2012 peak. Four of those, including Alaïa and Officine Penerai, will be the brand’s first in London, further highlighting Bond Street’s role as a destination of choice for retailers of this calibre.
Since 2012, European brands have strengthened their presence on Bond Street, with the proportion of stores they account for rising to 58 per cent from 49 per cent. This coincides with an intensification of brands originating from European luxury houses. Conversely, the proportion of stores occupied by UK retailers has dipped from 39 per cent to 32 per cent and US retailers from 9 per cent to 6 per cent during that time.
Ultimately, these changes are all contributing to the ever-increasing strength of Bond Street’s global profile as a luxury destination. In turn this will attract even more super luxury retailers and secure appetite from international investors.
Read more: Savills Global Luxury Index