The cost of renting a store on Bond street is enough to put many retailers off the thought of never having a presence on London’s most luxurious shopping destination.
With millions of pounds of key money being required to buy leases and a staggering square foot cost to rent a store makes it expensive to the point of not profitable.
According to the Guardian, after the Brexit vote devalued the sterling, many retailers considered leaving the area for better value rents and business rates. “About 25 of the 100 top fashion brands with stores on Old and New Bond Street are understood to have flagged to the property market that they are ready to quit the world-famous fashion district. Dolce & Gabbana, Hugo Boss, De Beers and DKNY are among the big brands understood to be considering their options,” writes the newspaper
For the retail sector, the effects of Brexit continue to unfold. Brands have already experienced sterling depreciation and increased import costs, but inflation, an increase in interest rates and a reduction in domestic retail spending as consumers tighten their belts in anticipation of further economic weakening are also possibilities.
Jace Tyrrell, chief executive of the New West End Company, a group that represents retailers in the area, told the Guardian “Central London costs are rising, particularly as a result of the recent business rates review, which hit Bond Street very hard.” Bond Street is currently seeing an injection of 10 million pounds as part of an upgrade so that “it remains the centre of London’s luxury quarter.”
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