Salvatore Ferragamo to pay highest rent in London
Here in London, we're used to astronomical rental prices, but luxury footwear brand Salvatore Ferragamo is about to break a record even for the capital. The shoemaker will pay more than 1,000 pounds per square foot for coveted retail space in Bond Street, making it the highest ever rental price on the UK high street.
So how does this figure stack up against what's normal in retail terms? On London's most famous shopping street, Oxford Street which is just a short stroll away from the new Ferragamo store, rents generally fetch about £200 per square foot. Currently, Ferragamo are paying about £600 for the space in Bond Street, but as part of a plan to extend their retail space, they will soon have to pay the £1059 premium.
Nobody from Ferragamo was available to comment on the rental madness this week, but their apparent acceptance of such a tariff does seem indicative of the current split between struggling high street brands and luxury retailers. Somewhat counter-intuitively, designer brands are generally doing better than cheaper brands, as emerging markets in the Far East and Russia increase demand, and those unaffected by the recession in the West buy in to the trend for 'investment purchases'. But have Ferragamo gone a step too far?