Abercrombie & Fitch is set to open a new store at 325 Oxford Street after striking a deal with global real estate investment, development and property manager Hines.

The fashion retailer has agreed a multi-year lease on the mixed-use space, which was acquired on behalf of the Hines European Value Fund 2 in 2020.

The space covers two floors and is positioned on the corner of Oxford Street and Bond Street. Abercrombie & Fitch expects to move in and start trading in early 2025.

The new arrival offers a further boost to Oxford Street, which is undergoing a £90m investment programme to improve the space.

A new report by the New West End Company revealed that the £90m programme is forecast to drive 5% to 10% in sales growth per year to potentially reach £2.8bn in additional sales between 2027 and 2033.

Scott Clarke-Bryan, Abercrombie & Fitch managing director for Europe, the Middle East and Africa, said: “We see tremendous opportunities for Abercrombie & Fitch here in London and this prime location at the crossroads of Oxford and Bond Street will add to our growing presence in the UK market.

“We look forward to welcoming our customers into a new and elevated experience early next year in this iconic shopping destination.”

Hines UK managing director Jake Walsh added: “Securing such a high-profile, iconic brand as Abercombie & Fitch is a real coup for Hines and represents a fabulous addition to Oxford Street’s retail offering.

“It is an exciting time for London’s most famous shopping street as it is redefining itself as a go-to retail, leisure and office destination, and we are proud to be contributing to its dynamic evolution.”