The number of international retail and leisure brands opening their debut UK outposts in London is increasing, according to research by Savills.
To date, 36 new entrants have launched in London since 2018 began, exceeding the full-year total of 32 in 2017.
Savills predicts that the 2018 total could tally around 45, potentially heralding a 40% increase year on year and bringing it closer to the 2016 peak of 53.
So far in 2018, 39% of new retail and leisure entrants in London have been international food and beverage operators, including Greyhound Café and BunCo.
Record year
Savills said that, based on known pipeline, 2018 would be a record year for new F&B international entrants to London, with close to 20 openings.
US F&B concepts have made a comeback, with five new entrants in the year to date including CHLOE, Which Which and Inko Nito.
There has also been an increase in interest and activity from Asia Pacific-based operators with three new entrants in 2018, including Singaporean brand Old Chang Kee and Chinese hot pot chain Hai Di Lao.
Marie Hickey, commercial research director at Savills, said: “While there have been operational challenges facing the UK F&B market, people are still going out to eat and spend is forecast to increase by 8% over the next five years. This continues to attract new international operators to the capital.”
Savills predicted that the total number of non-F&B new retail and leisure entrants to London in 2018 is also expected to be up on last year’s total.
To date, there have been 22 non-F&B new entrants with a further four due to open soon and more in the pipeline before year end.
European influx
The firm said that Europe had been the main source market for non-F&B new entrants, with French and Italian brands dominating. Examples include French online brand Sézane opening a permanent site in Westbourne Grove and Jimmy Fairly taking space on Regent Street.
Laura Salisbury Jones, associate director of Central London and European retail at Savills, added: “Despite a number of well-publicised challenges facing the UK retail and leisure market currently, it is clear that London’s appeal remains for international brands.
“In some cases these challenges are creating opportunities for new entrants. The strong momentum we have seen in new entrants to the capital so far in 2018 looks [set] to continue in the remainder of this year and beyond.”
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