Smaller Cities Far From London Are Quietly Becoming Luxury Hubs

Whilst London basks in its reputation as the luxury capital of the world, cities outside the UK are quietly — and profitably — becoming hubs of high-end shopping.  

The expansion of a super-luxury brand from London to Leeds might not make a lot of sense at first blush, but when Princess Diana’s favourite shop did it, brands noticed. Harvey Nichols set up shop in Leeds in 1996, and was followed by Vivienne Westwood, Church’s, Cutler and Gross, and others.   

In October 2016, Hammerson opened its 575k SF, £165M development as an extension to the Victoria Quarter arcade in Leeds. Heralded as the Knightsbridge of the North, Victoria Gate has been a knock-out for Northern shoppers. The scheme is anchored by a flagship John Lewis store, which is the first in Leeds and the largest outside of London. Tenants include Tommy Hilfiger, Aspinal of London, GANT, Neom Organics, T2, Anthropologie, MAC Cosmetics, & Other Stories, Joules, and Russel & Bromley. Around 77% of the lineup are debuting in Leeds, and 33% of the brands are new to Hammerson’s retail portfolio. 

Hammerson CEO David Atkins said in a statement that the company has been overwhelmed by the response to Victoria Gate. “This is a truly unique development and there is nothing else like it in the UK. We are confident that Victoria Gate will set new standards for retail across Europe as it becomes an iconic piece of Leeds’ retail heritage." (Victoria Quarter shown.) 

Hammerson created Cabot Circus in Bristol, and Bull Ring Centre in Birmingham — both second cities that show a large capacity to sustain big spenders.

Other high-end retail developments in cities like Manchester and Bristol have also done well. According to a recent report by Javelin Group, the dominance of malls is a regional trend. In London, only 10% of shopping areas are malls, while 80% of Bristol's shopping centres are malls. The uneven nature of shopping centre distribution across the country reveals the opportunities available for development, according to Javelin Group.

Ironically, the internet, long considered the retail-killer, is fueling interest in brands to a greater number of people, and propelling companies outward from London.