Now that almost three months have passed since the world woke up to find Britain had voted in favour of exiting the European Union, retailers, landlords and consumers alike have had some time to reflect on the decision. So how has the Central London retail market fared since then and what does the future hold?

While there are many macroeconomic factors still at play, the current market is looking very positive. Increased tourism, coupled with landlords implementing strong retail strategies, has ensured that London remains one of the world’s leading shopping destinations.

Although there have inevitably been some losers as a result of recent fluctuations in the value of the pound, there have also been some definitive winners in Central London.

Occupancy levels across the capital city’s hotels rebounded in July following relatively weaker performance in the preceding months. This provides a clear indication that large volumes of tourists are capitalising on the lower price of goods by choosing to visit London.

Figures from the Tourism Alliance show that the number of foreign visitors to the UK in the month after the vote jumped 18 per cent compared with a year earlier. This mini tourism boom will have a good impact on retailer sales given that in some parts of the West End, up to 60 per cent of all shoppers are international visitors. 

In turn, this will help to offset a potential decline in the domestic market, where a weakening in consumer confidence and a decline in spending could start to be felt. Spending by the baby boomer generation is likely to be the most resilient over the short to medium term, as research shows this generation’s shopping habits are less impacted by economic uncertainty.

These external factors shouldn’t however mask the fact that landlords with specific and definitive strategies in place have prevented their schemes in Central London from being exposed to the potential post-vote uncertainty. Retail brands which understand landlords’ visions for locations, and trust in them to be delivered, remain confident. Tribeca’s Old Spitalfield’s Market in Shoreditch is a prime example of this: we have completed deals with international brands including lululemon, Rag & Bone and Zadig & Voltaire since the referendum and already have more in the pipeline.

It is clear that retail brands which are mature in their growth strategies are still confident about London and this is translating into their own continued success. The restaurant market, too – which often complements and draws footfall to the best performing shopping areas –  is as hot as ever. A report issued by the Coffer Peach Business Tracker in August highlighted that there was a 2.9 per cent increase on last year’s takings at London’s bars and restaurants.

Early indications of consumer confidence and spending on retail and leisure since the referendum confirm what many of us already know: that London is a great global city, inside or outside of the EU.

London’s heritage and diversity mean that it is the most dynamic city in the world, and is as strong today as it has ever been. Focused landlord strategies with a heavy emphasis on leisure in combination with a curated retail line-up will ensure that Central London’s retail destinations just keep on getting better.  

Further information

Savills Brexit Briefing: The Impact on the UK Retail Market