Banana Republic has finally planted its first footsteps on European soil.

This morning’s opening of the 17,000 sq ft, three-level store in the former Dickens & Jones site on London’s Regent Street marks the end of a long wait for a UK fashion pack that had been deprived of its grown-up affordable clothing.

The Brits’ love affair with Banana Republic began with its launch in the US a quarter of a century ago and demand since then has intensified with the announcement of plans to open its European flagship in London.

And the eagerly anticipated store stands out on a street that has become home to some of the most exciting clothing retailers in the UK.

So how does it compare?£95 silk dresses sit alongside£300 women’s leather jackets and£25 t-shirts in a store created to feel like a luxury residential home. Women’s shirts at£39.50 and men’s jeans costing£65 are merchandised among antique furniture and light touches of Americana. Navy and orange and colourful prints form focal points, along with sophisticated light fittings and original art.

With none of the pound-to-dollar criticisms that beleaguer Abercrombie & Fitch and an established brand recognition in the UK, Banana Republic will undoubtedly benefit from a buzz of appreciation from its European devotees that other retailers can only hope for. Next door, H&M seems a mere whippersnapper, while Cos lacks colour. Further down the road, Massimo Dutti and Reiss are the only obvious contenders for Banana Republic’s attentions.

But will the love affair overcome all odds? Parent Gap has chosen one of the most challenging times in which to launch its chain in the UK, as clothing retailers continue to report sharply declining sales and it has candidly acknowledged that this opening is a cautious one.

Despite reports that Banana Republic is gearing up to open five more stores in the UK, the retailer is realistic about monitoring the Regent Street store’s opening closely before committing to any more shops. However, while Banana Republic – which recorded a turnover of US$2.5 billion (£1.26 billion) last year – takes its first steps in Europe in London today, it seems likely that it will be on a firm footing before long, if only because of its cult following.

Unlike sister brand Gap – which was once shunned by trend-hungry UK consumers in favour of more edgy alternatives – Banana Republic, while still offering preppy American fashion, feels sharper and more aspirational – a feeling that consumers are seemingly responding to in the depressing retail climate.

The only banana skin that the retailer faces is whether it will slip up in one of the most difficult trading periods in recent years.