Shoppers Playing Merry Tunes on London Retailer Cash Registers

By Stephen Stephanou, Principal of Madison Retail Group, Chicago

CHICAGO, IL--I just returned from London having been there during the second half of the Easter Holiday.

Consequently, families on vacation and tourists were in abundance in the major shopping venues in the capital. Piccadilly Circus, (middle right photo) Regent Street, and Oxford Street were literally teaming with people - many carrying shopping bags.

Apparently, while there is a settling of retail sales in other parts of the UK, sales in London (Downtown, top left photo) remain strong for many retailers.

As one real estate professional mentioned to me, “this is the cheapest place to buy a Rolex, at least for Europeans,” who are benefiting from the softening of the pound against the euro.

This seems to be making London a bit like the shopping mecca that New York enjoyed until recently - where literally hordes of shoppers descended on the city seeking values.

The luxury blocks of Old Bond Street had its share of foot traffic as well - although this seemed less vibrant than a year ago.

But it looked considerably less challenged than its American sister venue of Madison Avenue between 57th and 72nd Streets, where there are a number of opportunities for both direct deals and subleases at rents considerably less than a year ago.

Some of the newest players to the street-scape - and familiar to Americans, include the new National Geographic Store on Regent Street.

It opened last November and is located on three floors.

The store sells a vast range of products from the most basic of travel essentials such as maps and bug spray, to innovative apparel suitable for worldwide expeditions.

The store includes a tapas cafe, library and cartography areas, and travel services.

More stores are planned in other major European cities.

Abercrombie & Fitch’s store appeared to be booming with business. Located a bit “off” - behind the Royal Academy of Art, on 7 Burlington Gardens, operates with no signage - between Bond Street and close to Savile Row.

There is no visible signage on the store. However, its destination shoppers have no trouble finding it - and buying. One does however wonder if a store on Regent Street would have made more sense.

Everyone knows Harrods’s and Harvey Nichols. But Selfridge’s (middle left photo) remains one of the best department stores.

It has almost everything under one roof and a terrific sales staff to back it up.

And Fortnum & Mason(bottom right photo) is one of a kind - great for gifts, tea, wine, jams, candies and gift items.

All of its floors have been very recently remodeled and the dining and tea venues are comfortable and elegant.

Westfield (bottom left photo) opened its White City center, a 1.6 million square foot retail venue in West London. The center boasts various luxury brands, including Louis Vuitton, Mulberry and Prada housed in a boutique-style environment called “The Village”.

There are also close to 50 restaurants and a multi-screen cinema.

The center is beautifully fitted out - but its opening last fall - although strong, comes in the wake of a recession in the UK not dissimilar from that in the US.

And its location and the duplication of brands has not driven the tourists to this center from central London.

While shopping centers do exist in the UK, they do not enjoy the prominence that they have over the last 40 years in the US. I was able to visit some of the high-end market towns south and west of London, like Tunbridge Wells, Guilford and Brighton, where high-street retail remains the order of the day.

Contact: Kurt Ivey, kurt.ivey@madisonmarquette.com