Why London luxury retail needs more than hype

London’s luxury retailers are fighting back against a spending slump with viral marketing stunts, exclusive pop-ups, and loyalty schemes, aimed at reigniting enthusiasm for brick-and-mortar shopping. Spend across the West End fell 1.9% YoY in Q1 2025, a continuation of the softening seen at the end of 2024, according to the New West End Company. From stores to gallery spaces At the core of leading fashion maisons’ strategy is reinvention. Labels like Dior, YSL, and Valentino have focused on developing their brick-and-mortar flagships into gallery-like spaces. Miu Miu’s recently reopened New Bond Street location is the prime example of a “retail concept,” store, covering approximately 700 sqm, it is an artistic space kitted out with sleekly industrial metal flooring and wooden ceilings. After all, brands need to justify eyewatering rents while enticing a more curated luxury shopper. Pop-up culture: Limited, curated, viral Enter pop-up culture: limited, curated, viral. In a climate where permanence feels risky, temporary retail is luxury multi-brand retail’s hottest trend for reliability and novelty. Selfridges continues to master the format, which is hosting the whimsical Jellycat Fish & Chips experience in the toy shop, which went viral on Chinese social media and all over the world. The British multi-brand retailer hires professional actors as sales advisors to bring the Jellycat range to life, playfully reenacting a traditional fish and chip shop — much to the delight of shoppers. On Xiaohongshu (also known as RedNote) alone, #jellycatselfridges has 627,800 views, and #jellycatlimitedproduct, home to lots of photos shooting the Selfridges exclusive offering, has 11 million views. Loyalty: From keyholders to Black Tier These moves follow a challenging few years. Selfridges has racked up more than 400 million British pounds ($544 million) in losses since its last pre-tax profit. Still, the brand charges forward with immersive concepts and “Selfridges Unlocked,” a loyalty program that turns customers into “Keyholders” with perks like shipping and early access to collabs. The logic? Drive recurring engagement, not just occasional splurges. Along with its own exclusive Jellycat toys, such as teapots and cakes, Harrods has also secured virality through limited-time-only activations, tapping into collector mania via Pop Mart’s six-week Labubu pop-up. Alongside the Harrods move, Labubu-artist Kasing Lung designed the February cover of British style title The Perfect Magazine and held a signing event at Dover Street Market (DSM) London. To commemorate the occasion, DSM unveiled its own exclusive Labubu Zimomo “Zent” figurine in black and hot pink, limited to 100 pieces. Pop Mart Playground magazine editor-in-chief, Greg Gorian tells Jing Daily, “In a fast-paced, high-pressure society, it makes sense that people would turn to small things that offer comfort. Opening a blind box or getting a new toy featuring your favorite character can genuinely make your day.” The figurines are niche, but the strategy is mainstream: comforting consumers with moments that spark joy, and cultivate community. Tied to fashion, fandom, and exclusivity, it’s a marketing strategy for London’s experience-driven, multi-cultural consumer. Harrods’ fortunes stand in contrast to Selfridges. Gross profits hit 556 million British pounds ($756.9 million) in 2023/24 — its best since pre-pandemic days — thanks in part to its long-running, tiered loyalty scheme. The department store's top “black tier” members reportedly spend over 10,000 annually British pounds, earning tailor-made perks and Knightsbridge parking. In a world of shrinking wallets, Harrods has mastered the art of incentivized aspiration. Innovation beyond the department store Then there’s Fortnum & Mason, London’s high-tea favorite, now serving luxury via scooter. Launched in March 2025, its new 24/7 delivery service with Zapp brings caviar and biscuits to your door in minutes. Fortnum’s is also testing consumer appetite for premium memberships with its first ever loyalty scheme of a 100 British pounds ($136)/year “Friends of Fortnum’s” club. While economic signals remain mixed — U.K. GDP grew 0.7% in Q1 of this year, but is expected to slow — London’s luxury titans have lost faith in a quick rebound. Instead, they’re doubling down on brand equity, turning stores into stages, and scarcity into strategy. If there’s a through-line in all this, it’s resilience by reinvention. For London’s high-end retailers, survival is all about curating strong brand identity moments that can only be experienced offline.

Why London luxury retail needs more than hype

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Published June 16, 2025

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Why London luxury retail needs more than hype