The agent’s latest European Retail Destination Index, which identifies the best opportunities for expanding international brands, places London as the most attractive location for retailers in Europe, ahead of Paris. According to Savills, total occupational costs in London are 6.7 per cent cheaper than Paris yet retail spend and tourist flows are higher.
According to Mastercard, London has overtaken Paris with a record 19.8 million international tourists spending a total of €17.8 billion in 2015/2016. This level of spend is 53.5 per cent above that recorded for Paris and is even more pronounced when looking at the proportion dedicated to shopping. Visitors to London tend to allocate 46.7 per cent of their total spend to shopping, says Mastercard, compared to 16.7 per cent in Paris.
“The appeal of London and Paris to expanding international brands is unrivalled in Europe, however recent terror attacks have impacted Paris’s international visitor numbers, and their spending,” says Lydia Brissy, director of European research at Savills.
And Marie Hickey, director of retail research at Savills said: “The revenue potential of London and its lower occupational costs suggest the profit margin offered by a store there may be greater than that of a similar store in Paris. This will enhance its appeal to new international entrants, hence its place at the top of our European Retail Destination Index.”