London has world’s third most expensive shopping street
Hong Kong’s Causeway Bay has retained its title as the world’s most expensive shopping street, ahead of Upper 5th Avenue in New York, with London’s New Bond Street in third place, taking the title for the costliest place in Europe to locate a retail store, according to new data from Cushman & Wakefield.
The annual ‘Main Streets Across the World’ report tracks rents for 448 locations across 68 markets. The report ranks locations by their prime rental value using Cushman & Wakefield’s proprietary data.
London’s New Bond Street sits third in the global list, with annual rents at the London thoroughfare having risen 2.3 per cent in the past 12 months to £1,335 per sq ft per year.
Dublin’s Grafton Street comes in 13th on the list, demanding £312 per sq ft per year.
Report author Darren Yates, head of EMEA retail research at Cushman & Wakefield, said: “In terms of rental performance, this year’s results are encouraging and demonstrate the resilience of the premier retail locations. Rents on the world’s top retail streets have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America. In Asia Pacific, retail has generally performed well across a very diverse group of markets.
“Online sales continue to increase around the world, but while much of the narrative is focused on the challenges the internet poses for traditional bricks and mortar, the relationship between the two is more complex. While quantifying the value of the store has become more difficult, it remains an important touchpoint for the consumer and generates both in-store and online sales by acting as a showroom and creating a wider brand presence – the so-called ‘halo effect’. The most successful retailers will be those who best integrate their physical and online operations to create a seamless, positive brand experience for shoppers.”
Boris van Haare Heijmeijer, fead of EMEA retail at Cushman & Wakefield, said: “Even at the top end of the luxury market, retailers are having to work harder than ever to increase or maintain customer footfall. This means diversifying their offer away from just pure sales or transactions. Customers want a destination or attraction as part of their brand experience and that means adding other services or partners such as food and drink or leisure activities. We expect this type of brand extension to continue as retailers seek to maintain the attention of their customers and to stay relevant.”
