Hermès shows there’s life yet in luxury London retail

This week marked the opening of the new five floor, 2,000 square metre Hermès flagship at 166 New Bond Street. 

French style meets English history throughout its 55 different rooms, with the buildings’ original architectural details starring alongside rich interiors designed by the Parisian agency RDAI. It’s the latest jewel in the crown of a luxury brand that has proved more resilient to economic shockwaves than many of its peers.

Seventeen years in the making — Hermès bought the site in 2009 — its launch is a stamp of confidence in a city that has been said to be struggling to keep up with international luxury shopping destinations like Paris, New York and Dubai. 

Industry groups estimate the West End is losing around £600 million annually because international shoppers can no longer reclaim VAT on purchases. In October 2025, Selfridges reported a 7% decline in annual sales to £775 million, citing a sharp drop in international tourist spending as a major factor.

But look closer at the stats, and you can see that those numbers don’t reveal the whole picture about London’s luxury retail scene. Indeed, instead of Bond Street flailing with vacant lots, it’s heaving, with brands fiercely competing for prime locations. In 2025, it was revealed it’s now the most expensive retail destination in the world, with rents rising 22% to $2,231 per square foot per year.

“New Bond Street’s rental growth has been fuelled by strong demand, limited supply, and continued investment in the public realm, all of which have reinforced its status as a global retail destination,” said Duncan Gilliard, head of central London retail at Cushman & Wakefield. 

He continues: “The prime jewellery section between Clifford Street and Burlington Gardens in particular has become one of the most fiercely contested locations in global retail. This has seen many occupiers opting for long-term leases on strong rental terms to protect their position in this highly coveted location.” 

As the luxury market goes through a period of recalibration around the world, it’s becoming apparent that physical retail is increasingly important for brands — not just for sales, but for branding, storytelling, engagement, and fostering customer relationships. 

Hermès is also happy to embrace the distinctively British elements that bring 20 million tourists to its capital city every year. To mark the launch of the new store, it has released a new Slim d’Hermès, called ‘Stately Wheels,’ inspired by a scarf depicting Queen Alexandra’s State Coach and two coachmen. It’s a charming piece patently designed for overseas visitors — although, this being Hermès, its craftsmanship and engineering are both impeccable, featuring a hand-applied miniature painted dial with a tourbillon complication. 

The maison’s watch offering also plays a key role in the New Bond Street flagship, with the window displays featuring current timepieces, and six rooms on the first floor dedicated to them and the maison’s jewellery collections. Watches play an increasingly important role in the brand, and more and more are presented alongside its leather goods and jewellery as part of a complete Hermès luxury ecosystem.

Like its watch division, which it has invested heavily in in the last 15 years, it’s clear the 166 New Bond Street opening is part of Hermes’s longer-term strategy. The maison is putting its faith in London’s luxury prospects — and that can only be a good thing for the city’s retail industry.