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London, not New York or Hong Kong, has most luxury retail potential: report

By
Fibre2Fashion
Published
today Feb 16, 2017
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London continues to be the most promising city for the growth of the luxury retail sector, regardless of the Brexit vote, according to a recent report. 


Harrods luxury department store in south west London - harrods.com


The long-term growth potential of London as a luxury destination is more than that of other fashion hubs like New York and Hong Kong in terms of retail property and breadth of international luxury brands.

According to the Luxury and Location report conducted by CBRE and Walpole, focusing on the luxury markets in London, New York and Hong Kong, all three of these cities face their own current challenges.

London is taking on board the decision of the UK population to leave the European Union, New York is under a new President and Hong Kong faces challenges with declining tourist numbers from Mainland China.

From the analysis and research, a clear case for London becoming the global luxury destination emerges, said the report. London is benefitting from the rise in international visitors due to a weaker pound, while the market in New York is cooling. As for Hong Kong, alternative Asian markets are becoming its tough competitors.

Other factors like over 100 five-star hotels, 65 Michelin-quality restaurants and the growth beyond heritage shopping locations due to high property demand in London are resulting in a rise of the city as a luxury shopping destination, noted the report. 

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