Thirty-six international retail and leisure brands have opened their first ever UK outpost in London in 2018 to date. This already exceeds the 2017 full year total of 32, with the final number for 2018 likely to be in the region of 45, bringing it in line with the 2016 peak of 53.

What’s different from previous high entrance years is the activity from international food and beverage (F&B) operators. So far, 39 per cent of new retail and leisure entrants in London this year have been international F&B operators, including Greyhound Café and BunCo. North American F&B concepts have also made a comeback, with five new entrants in the year to date, including by CHLOE., Which Wich and Inko Nito, with Mark Wahlberg-backed Wahlburgers set to open its doors later this year.

There has also been an increase in interest and activity from Asia Pacific-based operators, with three new players in 2018, including Singaporean brand Old Chang Kee and Chinese hot pot chain Hai Di Lao. Based on the known pipeline, 2018 will be a record year for new F&B international openings in London, with over 20 new brands.

It’s clear that while there have been operational challenges facing the UK F&B market, people are still going out to eat and will continue to do so. For example, consumer spend on eating out in London is forecast to increase 8.3 per cent, in real term terms, over the next five years. This growth, and the sheer size of the London market, will continue to attract new international operators to the capital.

The total number of new retailers coming to London in 2018 is also expected to be up on last year. 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 the end of the year.

Europe has been the main source market for retail 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.

Despite a number of well-publicised challenges facing the UK retail and leisure market currently, there can be no doubt 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 brands flocking to the capital so far in 2018 looks set to continue into the remainder of this year and beyond.

Further information

Contact Savills Retail