The number of shops owned by retailers on Bond Street and Oxford Street, W1, has risen by 28% and 7% respectively over the past two years.
Research by Savills shows that retailers account for 22% of ownership for the whole of Bond street, second only to the overseas investors group at 31%.
Of all the space on Bond Street that is under retailer ownership, 50% of the shops are owner occupied, including Prada, Chanel, Louis Vuitton (LVMH), Yves Saint Laurent, Longchamp, Etro, Graff Diamonds and Sotheby’s.
Bestseller is the only retailer on the street that has invested in space and has no stores under occupation.
Retailers Chanel, Graff Diamonds, Fenwick, Richemont, Hermes, Max Mara and LVMH have all invested in units that they do not occupy.
On Oxford Street retailers now account for 14% of owner-occupiers, fewer than on Bond Street, where 31% are retailers; these include Calzedonia, Arcadia (Topshop and Miss Selfridge), Hennes (H&M), Marks & Spencer, Selfridges, John Lewis and Ponte Gardea (Zara).
Ponte Gardea, with 12 stores, owns the most shops on Bond Street, followed by Bestseller, which owns five. Overseas investors are the largest group of owners on the street, accounting for 32%, with UK property companies just behind at 30%.
Anthony Selwyn, head of central London retail at Savills, said: “On Bond Street the increase in retailer ownership is in part about protectionism and being able to have some control over occupation. Furthermore, the future rental growth story has also encouraged investment by brands, which is reflected by retailers on the street owning additional stores they do not occupy. This investment appetite from brands has also contributed heavily to competitive tension in yields.”
Marie Hickey, central London retail research director at Savills, said: “I expect there will be further investment by retailers over the next few years on Oxford Street and brands could also look to invest in other emerging locations in the luxury quarter such as Dover, Albemarle and Conduit streets, which are likely to offer greater investment opportunities due to ownership profile.”
