Why is London so expensive?

So what do you think?Is London too expensive?

After a trip to New York, srcg’s director Scott Annan is confused why the American city is so much cheaper than the English capital. And he wants answers quickly…

Scott Annan

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I got away from the recessionary gloom, the prices in our shops and the faux winter weather for a family wedding last week. New York City was the location, the sun shone and the retail experiences were great even at a reduced $1.90 to the pound. Thank you to Marks & Spencer for a great rate, no commission and delivering the dollars to my door. This isn’t just any currency, its … but enough of the ramble, what is the story? Patience please as we are off to the shops.

Being an Indian wedding, my daughter was given too many dollars from hundreds of ‘close’ relatives. This demanded a trip to Abercrombie & Fitch, American Apparel, Macy’s, Saks Fifth Avenue, Takishimiya and Urban Outfitters. I dragged her to Whole Foods Columbus Circle and Dean & Deluca at 56th & Lexington. I want to share some stories that tie in price, customer service and our shopping experience.

Why are Abercrombie & Fitch clothes almost three-quarters cheaper than the price of the same items in the London store? The prices were similarly low in American Apparel and Urban Outfitters. The exchange rate traditionally covers ‘half’, the outlets visited are in prime rent locations and the staff hourly pay is higher. Perhaps if someone knows why they can leave a comment.

So onto Whole Foods Columbus Circle. If there is such a thing as a fun food store then this store is it! Sunday evening and it was packed with noisy shoppers buying groceries for home or ‘dining in’ from a huge choice of hot and cold dishes. We stood with pasta, sushi and craft ale (yes I am weird) in the check-out line with at least ten diners ahead of me, and was eating three minutes later. My fellow diners were engaging and smiley and one couple, the Lombardi’s with two teenagers, said they ate at Whole Foods two to three times a week. ‘Great quality and variety; fast and friendly service, and good prices’. They had spent around $22 (£10) and had too much food. The doggy bag duly arrived. Interestingly they did not shop in Abercrombie & Fitch as ‘it is too expensive’. What would they make of UK prices I asked myself?

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