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Apple changes Regent Street to its core
Jonathan Prynn and Mark Prigg20.11.09
Five years ago it was the West End's “cashmere alley,” a tired collection of Scottish knitware shops, airline offices, high street chains and faux “England-land” heritage stores.
The arrival of the Apple Store - the first outside America - exactly half a decade ago today - has transformed Regent Street into one of Europe's leading retail shopping destinations with an enviable and growing collection of global brands.
Retail experts say the arrival of Apple - where takings are a remarkable £60 million a year - acted as a catalyst that allowed Regent Street to throw off its spinsterish image as Oxford Street's tartan clad maiden aunt.
The glass-fronted 28,000 sq ft store opened on 20 November 2004 by Apple's chief executive Steve Jobs, now generates sales of £2,000 sq ft, almost three times more than Harrods, making it London's most profitable store.
The store also has a theatre where Apple holds gigs that have included appearances by REM and Duffy.
Commentators said the arrival of Apple gave other global brands the confidence to locate in a street that had previously been better known for V-necks then iPods.
Tim Danaher, editor of Retail Week magazine, said: “To be blunt it was rubbish. If you think back five years there was not much more than those old cashmere shops. But it's been completely transformed into a world class shopping street. When US retailers are looking at locations in Europe, Regent Street is the first port of call now.”
The change has been bought about by a conscious decision by freeholder the Crown Estate, the world's oldest property developer, which owns the entire stretch of Regent Street. This makes it the world's biggest High Street under single ownership.
David Shaw, head of Regent Street at the Crown Estate, said the decision came in 2002 after a number of head-leases that were originally signed in the Twenties and Thirties came up for renewal, allowing the Estate to get its hands on many premises for the first time in almost a century.
Since then the Crown Estate has invested £750 million in regenerating Regent Street, increasing the amount of retail space by almost a quarter.
Recent arrivals include the first branch of Banana Republic outside America, the cult US life-style store Anthropologie – again the first this side of the Atlantic - the first branch of George Davies's new fashion venture GIVe, the European flagship for US denim chain Guess, a huge Nokia store, Britain's first Ferrari shop, even a “pop-up” devoted to all things Marmite.
Another imminent new tenant is uber-trendy Dutch fashion chain Sting, which will occupy the former Tower Records , Virgin Megastore and Zavvi site on the corner of Regent Street and Piccadilly.
Former Burtons director Mr Shaw – appointed by visionary chief executive Roger Bright - said the Crown Estate had scoured America for its top brands and persuaded them to locate in Regent Street, originally designed as a ceremonial route between Mayfair and Soho. “We have gone and banged on doors and said'you should come to Regent Street',” he said.
Brands that the Crown Estate are said to be in currently in talks with include US lingerie chains Victoria's Secret and Abercrombie & Fitch sister company Hollister.
Even in the depths of the recession Regent Street has no empty space “from Circus to Circus” and only 2000 sq ft on its northern stretch, Mr Shaw said. That gives it an overall vacancy rate of 0.03 per cent compared with 4.5 per cent across the West End as whole and 11 per cent nationally.
The “Apple effect” has also had a dramatic impact on rents, which have risen around 25 per cent since then compared with 0 to 10 per cent in the West End as a whole. While rents , which range from around £275 to £450 per square foot are still at a discount to Oxford Street, the gap is closing.
The days when the only reason for the discerning shopper to turn south from Oxford Circus was a trip to Liberty or present buying at Hamleys have long gone.
THEN NOW
No 83-97: Boots Nat. Geographic
132: Lloyds Bank Mappin & Webb
156: BA Travel Store Massimo Dutti
158: Wedgwood Anthropologie
160-168: Next Guess
170: Mappin & Webb Calvin Klein
193-197: Racing Green Ferrari Store
224-244: Dickins & Jones Banana Republic
Nokia
Armani Xchange
Swarowski
Tower Records The Sting (to open)
Reader views (8)
While I don't subscribe to the "Apple Effect" I am a convert to the Apple way of life, and welcome the store which is in danger of becoming my second home.
- Hilda Lanes, East London, UK
Sorry Joyce. Unless you have different figures or facts, it's hard to argue about a store's square footage or it's revenue. I guess though, if YOU don't need Apple's products there's no way they can survive. It's a mystery how Waterford became bankrupt with you buying champagne flutes so often. Maybe Waterford exaggerated their sales negatively?
What are the other complaints? A guy gets an AC converter replaced for free, but thinks maybe he should get compensated for his time as well. yawn...
If that's the worst thing you can say, then Apple is doing quite well!
cheerio!
- John Kramarz, Trenton, NJ United States
Hanging on in quiet desparation is the English way
- Rodger, London
I once stood in a queue in the Apple shop in Kingston.The person in front wanted a replacement mains lead (inseperable from the charger) for £50 just what I wanted and the same for the person behind me! The next time it broke I took a Dell lead in with me to show them how they should be made. Needless to say they were not interested in looking at the Dell lead but I got another Apple one free of charge. Victory? No as I had to waste my time yet again visiting the place.
- Jack Spratt, Richmond, Surrey
Regent Street has always had more class than Oxford Street - if it wasn't for Selfridges Oxford Street would be positively third world, full of cheap knock-off shops, English language schools and the sickly scent of those nuts every ten yards.
- Squiz, Islington
@Joyce
Maybe you should pop into the store before making you own exaggerated claims. Ipod's for 50p? In any case this so called "Apple effect" is nonsense. The store is practically on Oxford Circus. Being so close to Oxford Street I'd hardly imagine it would entice shoppers to suddenly take a venture down Regents Street.
- Jon, London, UK
This is a complete non-story and just free publicity for Apple. Some shops replaced by other shops - this has been happening continuously since Regent Street was built.
- Helen, West London
This is another one of those stories where the facts or figures are exaggerated. I’m a woman who doesn’t need any of these Apple products.
Regent Street has and always will be about prestigious stores. I don’t believe Apple falls into this category. If you look carefully shoppers are attracted to it because of stores such as Liberty’s.
One thing I would say, I miss the Waterford and Wedgwood flagship store. I like to pop into Liberty's and buy six Waterford crysltal champagne flutes rather than a cheap Chinese 50p IPOD.
- Joyce Jerome, Greater London
