Longchamp warns of possible impact from high shop rents in London

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The celebrity-adored bag maker Longchamp, has warned that soaring West End rents could push some of its London stores into the red.

The luxury French brand, which counts BBC star Mary Berry, the Duchess of Cambridge and model Alexa Chung as fans, is famed for its foldable tote bags.

It has stores on Oxford Street, Regent Street and at Westfield White City, as well as concessions in the capital.

In accounts just filed for Longchamp (UK), the firm said: “Property rental prices are at a premium, and there is therefore a risk that the high element of fixed costs could lead to stores becoming loss making.”

“Performance reviews of each shop are conducted on a regular basis.”

Rental woes are on top of concerns about a looming hike in business rates next year. Earlier this month the brand’s UK general manager Paul Lorraine was one of a number of retail specialists that signed a letter to the chancellor calling for business rate changes in Westminster, to secure future growth in the West End.

Sales at Longchamp’s UK arm rose to £8.7 million in 2015, from £7.3 million a year earlier.

Source Article from http://www.standard.co.uk/business/longchamp-warns-of-possible-impact-from-high-shop-rents-in-london-a3399176.html

November 19, 2016 |
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