A new boom in places to eat and drink across London has seen the Food & Beverage (F&B) sector dominate demand for retail property in Colliers’ latest Central London Demand Tracker.
Of the 283 active requirements tracked in the first quarter of this year, the F&B sector accounted for more than a third, with 106 requirements compared to 36 for fashion, 34 for experiential brands and 17 for pop-ups. In total, the requirements represent a demand for space across central London of around 1.6 million sq ft. By country of business origin, the USA was the most strongly represented followed by the UK, Australia, Denmark, and France.
Alex Hubbard of Colliers’ London Retail team, comments: “We’ve been tracking occupier demand for retail and F&B space since London’s market was reshaped by the pandemic.
“The fact that F&B is leading the dramatic renaissance of the capital’s world-famous destination streets and neighbourhoods reflects the growing desire from Londoners and visitors to sample all that the most vibrant city in the world has to offer. With international names such as Gaia and Socca opening in Mayfair, and Jacuzzi in Kensington, we don’t see any slowdown in the capital’s ability to attract the best concepts in the world.”
The research notes that while F&B may be dominating current demand, the retail sector is also beginning to move forward strongly, and London continues to attract the best global brands.
Erin McDonald of Colliers’ London Retail team adds: “We’ve seen Apple commit to Knightsbridge, Sephora open in Westfield, and Gymshark on Regent Street. The standout trend of the past 18 months has been the commitments we have seen across the map of London – not just to the most centrally located streets as operators understand the nuances of each neighbourhood.
“London is consolidating its offering and providing retail and leisure space that aligns with new patterns of consumer demand. The opening of Battersea Power Station and the continued evolution of the likes of Knightsbridge Gate and Marylebone High Street means that London has some of the most diverse and exciting retail destinations in the world.”
The substantial current level of demand has been backed up by the number of new entrants that have come into London since 2021. Data from Experian analysed by Colliers shows that during this period, there have been 752 new retail openings, 644 leisure openings, and 298 F&B openings.
