London’s premier luxury retail destination has been given a boost, with an international retailer planning a new flagship store.

Balenciaga, a French fashion house, has agreed to take over the lease of shoe retailer Russell & Bromley on New Bond Street, Bloomberg reported. 

It has also agreed a deal with the building’s owner, the City of London Corporation, to take over offices on the first floor above the existing store to create a multi-level flagship. Balenciaga paid about £5M to take over the lease, Bloomberg said.

The plans for the store are a significant vote of confidence in the future of London and of the prospects for luxury retail in the longer term, as the sector is having a tough time right now. Global tourism is a major driver of luxury retail sales, so with international travel grinding to a halt, retailers are seeing sales drop sharply.

Other retailers expanding on New Bond Street in the coming years include Versace and Brunello Cucinelli, Bloomberg said.

The Balenciaga deal also continues the trend of luxury retailers being willing to take space farther north on the street, away from the Old Bond Street high-end retail epicentre.