The once typically English shopping area near Savile Row is attracting younger, foreign brands.
Pulsating music, bare-chested male greeters and a non-stop flow of brand-conscious customers beating a path to the door – hardly the stuff, one would think, of traditional Savile Row territory. But it is now.
US casual-clothing retailer Abercrombie & Fitch threw open the doors of its first store in Europe – in Burlington Gardens – in March. It took over the 18,000 sq ft store, formerly occupied by Jil Sander, and quickly established itself as a key retail destination. Some had, however, questioned the wisdom of such a decision.
“Abercrombie & Fitch has surprised a lot of people in a positive way,” says Paul Souber, director of West End-based Briant Champion Long. “The location is not traditional prime and, being close to Savile Row, many asked: ‘is that the right spot?’ because it is a young brand. But the marketing has been superb.”
There now appears to be increasing confidence on the part of other nearby occupiers, and signs of rental growth.
Ray Dowse, director of retail agency with NB Real Estate, says rents in nearby Vigo Street, W1, of between £80 per sq ft and £100 per sq ft zone A have risen to £120 per sq ft with a letting to Starbucks. A reletting of the Ozwald Boateng unit at 9 Vigo Street is delivering another “considerable uplift in levels”, he says.
Peter Mace, partner in retail agency at Cushman & Wakefield, confirms there has been a deal at 9 Vigo Street at around £150 per sq ft zone A involving Dutch suit specialist Suitsupply – its first store in the UK.
Ozwald Boateng itself plans to relocate to Savile Row.
If Abercrombie & Fitch has had the effect agents suggest, there could be more to come. According to Dowse, the success of the UK launch has encouraged the company to consider exporting its Hollister brand as well.
Increased retail activity in more off-pitch areas has become a significant feature of the market, says Rob Hargreaves at Savills. He believes a number of factors are driving the growing strength of Conduit Street, Bruton Street and St Christopher’s Place. Among them are: the environmental pressures of Oxford Street, which are encouraging pedestrians to explore alternative routes escalating rents, particularly on Bond Street and a rising demand for main pitches against a lack of supply.
Another emerging retail location, says Hargreaves, is the “gallery territory” of Mount Street, W1, which has seen lettings to Marc Jacobs and some “quite quirky” fashion retailers.
Joanne Wilkes, head of retail at F&C Property, meanwhile, confirms it has been a strong year for St Christopher’s Place, with several potential occupiers going head-to-head for any available property, she says.
Overseas interest
C&W’s Mace believes that interest from overseas retailers will continue to grow. Among those that have recently acquired space in the West End, or are actively looking, are Japanese lingerie specialist Tabio, Hong Kong jeweller Carat and fashion brands such as Comptoir des Cotonniers from France and Gerry Weber from Germany.
Shearer & Delancey’s redevelopment of the Dickens & Jones store has further fuelled the international flavour that has developed along Regent Street. Its occupier line-up now includes H&M – with what is believed to be its biggest store in the world at 44,000 sq ft – US retailer Banana Republic, Nokia, Armani Exchange and a new format for Swarovski called Crystallized. C&W’s Mace also reports record rents being achieved.
“Regent Street is flying,” says Tony Moore, partner with retail property consultancy CWM. He says this could have a positive effect on Oxford Street by pressurising retailers and the authorities to “up its game”.
Primark boosts west end of Oxford Street
The opening of Primark’s 120,000 sq ft store close to Marble Arch caused the biggest sensation of the year among agents. The consensus is that it has provided the strong anchor needed for the west end of Oxford Street – and has encouraged interest from other retailers.
“We have seen a lot more interest in the block opposite,” says David Kenningham, executive director of retail at CB Richard Ellis.
Having taken a surrender on a lease from British Bookshops at 530 Oxford Street, Kenningham says this is now under offer to a fashion retailer: “We went to market and had three bids within two weeks. I would say there was more and better-quality interest.”
David Sanderson, partner at CWM, says: “Primark has had a tremendous effect on the west end of Oxford Street.” And Paul Souber, director of Briant Champion Long, agrees, saying that it has “acted as a shot in the arm for that area”.
Now the market is awaiting Land Securities’ Park House redevelopment nearby, where it will create 100,000 sq ft of retail space in 10 or 11 shops.
Oxford Street will see the arrival of another retailer, with a lease assignment on the Shellys’ shop at Oxford Circus to Italian lingerie retailer Calzedonia. Toby Comerford of Cushman & Wakefield, which acted for Shellys, reports a “significant premium” being paid on the deal.
The company is expected to trade there under its Tezenis brand.
From studios and nightclubs to casinos:
? MTV’s studio at 1 Leicester Square is being marketed by Shelley Sandzer. The company’s Trevor Shelley reports a lot of demand from “interesting operators” for the 11,000 sq ft space. MTV says the facility is surplus to requirements because it no longer broadcasts an “audience format” programme from the studio
? A planning application has been received for a nightclub of between 9,000 sq ft and 15,000 sq ft at 50 Haymarket. Entrepreneur and Renault Formula One boss Flavio Briatore has formed a consortium with UK high-end nightclub operator China White to launch his “Billionaire” luxury operation there. Briant Champion Long has been advising and the firm’s Paul Souber says an outcome is awaited on the licensing decision
? BCL director Dan Taylor says Leicester Square is witnessing a shift in focus towards casinos, with the Hippodrome, Equinox and Trocadero all likely to develop them
