London’s Future: The Global Stage for Flagship Retail
Local catchment
Population and domestic affluence are two important metrics for flagship retail viability.
Dense metropolitan areas generate the consumer volume that justifies higher costs associated with prime location rents, large floor plates, and costly experiential fit-outs. Affluence matters equally as flagships require a resident catchment that sustains spending year-round, insulating retailers from the seasonal volatility and external shocks that make tourism-dependent revenue unreliable.
Figure 1 shows population and projected growth to 2035 across the 15 cities in this report. London ranks fifth by population, and its growth rate to 2035 is modest, in line with mature markets such as Paris, Milan, and Los Angeles. Miami stands out. Despite having a smaller population than some of the largest markets on the list, it is forecast to grow the fastest, which, coupled with domestic affluence, offers retailers a long-term expansion opportunity.
Figure 1: Population and CAGR (2025-2035)
GDP per capita is shown in Figure 2, where London ranks third, behind only New York and Los Angeles. This points to a deep pool of local purchasing power and disposable wealth. Mumbai sits at the opposite end, recording the lowest GDP per capita of the 15 cities despite its scale. However, affluence is surging, supporting global premium and luxury retailers opening flagships. This is also the case for Riyadh and Dubai.
Figure 2: Real GDP per capita, 2025 (USD, 2015 prices)
GDP per capita expressed in real terms at constant 2015 prices to allow consistent comparison across cities and years
Separately, we find that London has the third-highest historic and forecast five-year CAGR growth of office-based employment in Europe, ahead of Paris, Milan, and Amsterdam, which further supports the commercial viability of flagship stores.
What the data reflects is market maturity. London is one of the few cities that combines sufficient scale, high resident spending power, and long‑term demographic stability, which is what makes it a consistently reliable flagship destination.
International tourism
While resident catchment is an important fundamental for retail, tourists boost footfall and often have a higher spend per transaction. Additionally, tourists’ exposure to brands while travelling increases brand visibility in other markets, which can be capitalised via digital channels.
London is the third most visited city globally and the most visited in Europe, welcoming 22.7 million arrivals in 2025, according to Euromonitor. Tourists are driven by London’s lifestyle vibrancy and distinctive identity. This reinforces the position of London’s retail stores as high-profile marketing vehicles raising global brand awareness.
Dubai has a robust tourism sector as shown in Figure 3 and experienced the largest yearly growth (7%) out of the cities in this report. This supports destination mall demand, particularly across sectors such as luxury and food & beverage. However, the conflict has significantly disrupted travel to the Middle East this year, with visitor incentives continuing to support recovery.
Figure 3: Euromonitor’s top ten most visited cities in 2025
Although not displayed in this graph, Seoul and South Korea more broadly, is experiencing a historic tourism boom driven by favourable exchange rates, cultural influence (K-pop, K-drama, and K-beauty), and widening visitor profiles, attracting a growing number of long-haul visitors. Inbound tourism remains a key driver of Seoul’s retail growth. Cumulative foreign arrivals reached 10 million in June, while foreign card spending hit a recent record high, fuelling luxury sales in department stores.
Read the next chapter: Brands choosing London for flagships
Continue reading to see why mass market, emerging and luxury brands all choose London for their flagship stores.
Read the next chapter: Brands choosing London for flagshipsWant to download the full report?
Business Contacts
Richard Smart
Managing Director, Head of London Markets
Phil Cann
Executive Director, Head of London Retail Investment
Peter Flint
Senior Director, Central London Retail
Research Contacts
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