A new report by CBRE reveals luxury brands have invested an estimated £400 million in flagship retail fit-outs across Bond Street and Sloane Street since 2025.
Across 30 leading mass market and premium fashion brands analysed by CBRE, London and New York were the only cities where every brand operated a flagship store, outperforming other established retail destinations including Paris, Tokyo and Milan.
London's appeal as a key global destination for flagship stores is underpinned by a combination of deep domestic affluence, international tourism and vibrant retail districts.
Not only is it the preferred location for established global retailers, but London also attracts emerging international retailers, with more than 80 brands from 27 countries actively seeking their first London location during the first half of 2026.
Prolonged demand and heightened competition for flagships has resulted in Oxford Street vacancy rates falling to just 0.4% in H1 2026, while Regent Street vacancy stood at 2.1%.
London’s ability to attract such a diverse tenant mix translates into investment volumes. According to CBRE research, since 2022, 25% of all European high street investment has been concentrated in the capital, making it the leading market in Europe in 2022, 2023 and 2025, with much of this activity focused on Bond Street.
More than 40% of Bond Street is now owned by a retailer or their dynasty, highlighting both long-term commitment to the capital and continued confidence in London's luxury retail market.
The report finds that flagship stores are becoming increasingly important as brands concentrate investment into fewer, larger and more immersive locations, reinforcing demand for globally recognised retail destinations such as London.
Graham Barr, Head of UK Retail, explained: “London's flagship retail market continues to demonstrate remarkable resilience and global appeal. At a time when brands are generally becoming more selective about where they invest, London remains a priority destination, attracting significant occupier demand and capital investment.
“The city's combination of wealth, tourism, culture and international connectivity continues to differentiate it from other global markets and marks its position as one of the world's leading locations for flagship retail.”
Tim Denny, Head of UK Retail Occupier, said: “Global and domestic retailers see a London flagship as an essential part of building a brand platform and delivering financial returns.
“Today's flagships combine retail with hospitality, events, wellness, personalisation and technology to create destinations that engage customers and strengthen brand loyalty. Retailers increasingly measure success across the whole business, from customer acquisition and brand equity to the online halo effect. Because one store now does so much work, a London flagship has also become a launchpad for ambitious brands looking to build awareness and demand far beyond the UK.
“With supply on the premier streets remaining tight, brands need to plan moves earlier and be clear about the role their flagship needs to play and the outcomes it must deliver.”
