London still Europe's number one choice for retailers, says JLL

London has cemented its place as the most attractive city in Europe for retailers, according to a report by JLL.

The biennial survey, Destination Europe 2015, found that London had increased its lead on second-placed Paris as the city of choice for luxury retailers. Headline rents on New Bond Street have risen by 42% in two years to €12,300, making it the most expensive high street in Europe.

James Brown, head of EMEA retail research and consulting, said: ‘For international retailers looking for springboards into Europe, London leads the pack. Its retail market size, maturity, high degree of market transparency and retail friendliness make it a magnet for international retailers who are willing to pay a premium for the best locations.’

Mature European cities such as Rome, Munich and Barcelona were joined in the top 10 by Moscow, in third place, and Istanbul in seventh.

James Dolphin, international director EMEA retail agency at JLL, said: ‘Moscow is growing and catching up fast, and may reach parity with Paris in the medium term in regard to international retailer presence.’

The survey also noted a shift in the retail landscape, with mainstream and premium retailers expanding faster than the luxury sector. Clothing chains H&M and Zara had the largest coverage across Europe, with a presence in all 57 of the main European markets.

JLL said the outlook for retail sales in Europe was the brightest in a decade, but the market remained challenging.

‘As a general rule, in the last two years, for every two stores opened, one store has closed down as retailers seek to work their stores harder and smarter,’ Brown said.