London's iconic West End presents untapped opportunities for Korean investors and brands in the retail sector to thrive and grow
Figures indicate that London is the most attractive city for international retail trade companies to expand to
US and European brands are leading expansion into London,with data demonstrating significant untapped potential for the Asia region in London
Turnover in the West End is expected to reach £11.4 billion in 2025,indicating strong returns forAsian retailers looking to scale overseas
SEOUL,South Korea,April 27,2022 --New investment data from London & Partners,the business growth and destination agency for London,shows that London is the leading global city for international retail businesses. Over the past five years,the UK capital has attracted a total of 460 retail trade inward investment projects: significantly more than any other destination city,ahead of Paris (256),New York (249) and Singapore (188). London attracted more inward investments than any other global city between 2020 and 20211.
Global businesses are reaping the returns of investment in the market,with the majority coming from the US and European countries which take up the top 10 source countries for retail expansion into London. Japan is the only Asian market to claim a spot among the top 10,ranking joint ninth place with Denmark,while South Korea and Hong Kong rank 24th and joint 26th place respectively,demonstrating untapped potential for retail businesses from Asian markets to expand their footprint in London.
New data shows London has seen more retail trade inward investment over the past five years than Hong Kong,Tokyo and Seoul combined. London can offer substantial growth potential for Asian brands outside of the Asian market,especially those offering consumer concepts in food & beverage,retail,leisure and entertainment,which contribute to the diverse consumer offerings in London.
London's West End is a major draw for overseas consumer businesses,with the district attracting 200 million visitors a year and an annual spend of £10 billion pre-pandemic. The area is home to over 250 flagship stores,with presence of well-known Asian brands including Uniqlo,Onitsuka Tiger and Samsung. There is now a unique window of opportunity for exciting consumer-facing businesses to be part of the West End's future story,as highly coveted retail space has become uniquely available post-pandemic,in renowned districts including Oxford Street,Regent Street,Soho,and Piccadilly.
The Korean population in the UK is the largest in Europe,contributing significantly to London's diverse and cultural retail,food & beverage and leisure scene. Samsung is one South Korean brand that has invested its innovative proposition in London's West End,having opened its experience store on Oxford Street in 2014. The brand also developed a 'tech playground' in the Selfridges store,inspiring customers to express creativity through technology. Korean beauty brands are also becoming popular with London consumers,with brands Dr. Jart+,TONYMOLY and Erborian on offer in major London stores including Selfridges and Harrods.
Isaac Kweon,Operations Coordinator at Oseyo,the largest Korean retailer in the UK,said:"Since opening our flagship in Chinatown in 2019,we've rolled out our Korean food stores to locations all over the UK,with even more developments and flagship locations in the pipeline. Over the last few years,we've seen Korean culture and food skyrocket in popularity in the UK,and London's West End was the ideal launch pad for us to debut our nationwide brand."
Laura Citron,CEO at London & Partners,said:"This new data offers further proof that London is a world class consumer destination,offering a multitude of opportunities for international investors looking to expand outside of their home market. The easing of restrictions has led to growing demand from consumers to get out and explore the city,so there's never been a better time for South Korean brands to snap up highly sought-after retail spaces and increase their customer base."
The future looks bright for London's West End with growth expected to rocket to an annual turnover of £11.4 billion by 2025,superseding pre-pandemic levels by 14 per cent. Short term forecasts predict turnover in the district will reach £8.6 billion this year and will recover to its historic annual figure of £10 billion within the next two years. The West End is one of London's most visited areas,and footfall in the district is already at 84% of pre-pandemic levels. Development in the area will be given a further boost,with a £5 billion capital investment planned over the next five years.
For Asian consumer brands considering expansion to London,a free of charge and confidential service is available from London & Partners,who can support in all areas of expansion and connect brands to West End property owners to help find retail space.
About London & Partners
London & Partners is the business growth and destination agency for London. Our mission is to create economic growth that is resilient,sustainable and inclusive. For more information,visit:www.londonandpartners.com
Data references
London & Partners analysis of data from fDiMarkets data from the Financial Times Ltd,March 2022. Based on greenfield Foreign Direct Investment (FDI) projects in the Retail Trade cluster (includes sectors including: textiles,food & beverage,consumer products and leisure & entertainment),between Jan 2016 to Dec 2021.
