CH Carolina Herrera Makes Its Move in London’s Prime Luxury Scene

Textil Lonia strengthens its footprint on London’s golden mile. The structure that today protects the façade of 140 New Bond Street hides the umpteenth transformation of London’s golden mile. There, Société Textile Lonia (STL) is finalizing what will be its new CH Carolina Herrera flagship store: a long-range project that has been underway for several months and whose opening date has not yet been revealed by the brand itself. Meanwhile, the West End is impatiently awaiting the brand’s second store in the capital.

The space, leased until 2023 by the French brand Zilli, is located in one of the most coveted sections of the street, flanked on the right by Fendi, at number 141, and on the left by Alaïa, located at 139. This proximity explains the pressure on prime rents in the area. Specifically on Bond Street, rents shot up 20% in 2024, to 15,333 euros per square meter, the highest figure in Europe, according to Savills. This spike put the neighboring street ahead of Via Monte Napoleone and behind only the most expensive avenues in New York.

The works, however, are progressing without an official opening date, as confirmed to Modaes by STL sources. Despite the lengthy deadlines, this schedule may be common for listed buildings or nineteenth-century facilities.

For the label founded by the eponymous Venezuelan designer, the move consolidates a strategic hub. CH Carolina Herrera has been operating since 2018 at 2 Fulham Road, in Brompton Cross. In addition, outside the city center, the brand manages an outlet space in Bicester Village, a leading luxury discount enclave that, to date, receives more than seven million visitors annually and is close to 100% occupancy.

Textil Lonia will strengthen CH Carolina Herrera with a second store in London

The bet on a prime store comes at a time of internal digestion. STL, 75% controlled by the Domínguez family and 25% by Puig, closed its last fiscal year in February 2025, recording a net profit of 37.3 million, down 30%, and an almost flat turnover of 429.9 million. The group attributed the slowdown to the currency effect and the moderation of affordable luxury consumption, but said to keep intact the plan of selective investment in locations that reinforce brand value.

In the UK, the company aims to turn New Bond Street into its major tourist showcase while Fulham Road retains the resident customer and Bicester absorbs surplus stock at controlled margins. The combination should enable STL to defend full prices without giving up bargain outlet traffic. This triangle of luxury flagship, affluent neighborhood boutique and outlet channel replicates the model the company has deployed in other capitals and intends to test it in a post-Brexit London.

This London reinforcement coincides with a particularly active West End. Watches of Switzerland recently opened a Rolex flagship store, with three floors dedicated to the Swiss crown, just 200 meters away. Savills has also recorded a minimum of eighteen new luxury contracts signed in the area in the last nine months, driven by the depreciation of the pound and the return of Middle Eastern tourists, whose spending per transaction exceeded pre-Pandemic levels in 2024.

In 2024, Moncler refurbished its store to gain a second floor, while Loro Piana signed a record deal on Mount Street and Chanel renovated its Old Bond Street town-house for ten years. The West End, which closed 2024 with virtually flat sales, posted a 2.8% year-on-year rebound in December thanks to tourism and demand for watches.

The West End has become one of the most desirable areas in London

Faced with this dynamism, landlords have tightened conditions, fixed rents are once again prevailing over the variable rents agreed during the pandemic and grace periods are being shortened. However, most of the agreements maintain escalator clauses to cushion the current volatility of international traffic.

STL’s plans look beyond the short term. While structuring a global network of 586 points of sale, including 354 corners in department stores, the Galician group prioritizes heritage businesses that consolidate its most international label. CH Carolina Herrera’s landing on London’s golden mile responds to this logic, which last year also led it to raise the shutter on several strategic spaces in Portugal.

Unlike competitors in the premium and luxury segment that announce openings on the back of a campaign, STL measures the impact of its initiatives discreetly. Its manual, polished in Ourense, is clear: little debt, surgical investment and strict control of the amortization schedule, the same script it applies to absorb falling margins without cutting dividends.

In terms of investment, at the beginning of this year, Sociedad Textil Lonia expanded its portfolio with the purchase of 100% of Christian Lacroix from the American Falic Group, former owner of the French maison since 2005. The transaction, the amount of which was not disclosed, returned the iconic haute couture brand to the umbrella of a European group and complements STL’s portfolio, which already manages CH Carolina Herrera and Purificación García.

For its part, the Catalan group Puig, owner since 1995 of the Carolina Herrera house (including the catwalk line directed by Wes Gordon) and shareholder of 25% of Sociedad Textil Lonia, has confirmed that the spring-summer 2026 collection will be shown in September in Madrid, coinciding with fashion week in the capital and reinforcing the brand’s visibility in its home market.

The international impact of the fashion event should also increase interest in the CH Carolina Herrera lifestyle line. Created in 2001, the brand’s offer includes men’s and women’s ready-to-wear, leather goods, footwear, eyewear, watches and homewear under a worldwide design, production and distribution license held by STL.