Paris is expected to overtake London for the number of new international retailers making their debut in the city this year.
Alexander Wang’s flagship in London
London is set to attract a total of 26 new retailers by the end of 2015, with new stores including DSquared2 and Alexander Wang, which opened earlier this year, while Paris is expected to attract a total of 29, including S.Deer and Nixon.
Last year, London was the favoured destination with 30 new entrants compared to 24 in Paris.
“The Chinese visitor story is still very persuasive to brands and Paris continues to outpace London in this respect,” said Marie Hickey, retail research director at property agent Savills.
“But, with improved visa streamlining we could see London start to consistently outperform Paris in terms of new entrants over the next three years, especially in light of it being cheaper from a total occupational cost perspective, for example Zone A rents on Bond Street are 27% cheaper than on the Champs Elysées.”
Luxury and accessible luxury brands have made up the largest sector of new entrants in Paris at 36% since 2012, while in London the number stands at 31%. Aspirational brands have been more prolific in London, accounting for 40% over the past three years.
Since 2012, London has attracted 22 US brands including J Crew, John Varvatos and Alexander Wang, while Paris has attracted 18 in the same period, two of which do not have an existing store in London such as New York fashion brand Oak.
Average Grade A rents across central London grew by 11.5% per year, with rental growth of 27.2% on London’s Bond Street, compared with Grade A rent on the Champs Elysées up by 8% per year in the same period.