Will Chanel Buy in a Tough Neighborhood?
French brand finally has a chance to own its London flagship store, just as shoppers have disappeared
The appeal of owning a luxury store on one of the world’s most expensive shopping streets during a pandemic is about to be tested.
Swedish pension fund SEB is selling a boutique occupied by French luxury brand Chanel on London’s Bond Street. It wants £240 million ($317 million) for the building, a price that offers a 2.9% yield on the annual rent, according to the Times of London. That’s slightly more generous than the 2.5% yield on the last property sold on the street, according to Savills data.
Chanel has wanted to own the boutique for years, property insiders say. Unfortunately, its chance has arrived just as Covid-19 leaves designer stores deserted. Footfall around Bond Street is down almost three-quarters compared with last year, according to New West End Company data. The overseas tourists who are the bread and butter of London’s luxury stores may not be back in their usual numbers for years.
If Chanel or another investor does stump up in such dire circumstances, it will show that some properties never go out of style.