A Savile Row tailor to stars from Sir Elton John to Stormzy has opened a new bespoke £2 million store, as its boss said the luxury menswear market is in a “bubble” which is more cushioned from the wider cost-of-living squeeze.

The third Richard James store opened in Clifford Street, just off Savile Row, on Friday, as the company said it wants to see greater protections put in place for London’s famous tailoring street.

Co-founder and managing director Sean Dixon said the retailer, which sells bespoke tailored suits costing up to £6,000, has not seen a significant shift in spending habits despite UK inflation hitting double digits a year ago.

“We are slightly sheltered from what is going on in the rest of the country,” Mr Dixon told the PA news agency.

“But we are not completely immune, there is a knock-on effect. Whenever there is a bad news story about the economy, I do see an effect here.”

Higher interest rates, which have pushed up mortgage costs, are more likely to affect its customers, but he said he had “not noticed any decreases” in spending.

Large luxury retailers such as Burberry and Mulberry have flagged weaker demand in recent months as wealthy shoppers tightened their belts.

“The world of tailoring, and the suit, is actually having a bit of a resurgence,” Mr Dixon told PA.

The “novelty” of loungewear which took off during the Covid-19 lockdowns has worn off, with more people now choosing to dress formally, according to the businessman.

Tailoring business Richard James said it wants Savile Row to have protected status (Richard James/PA)

He also highlighted a rise in younger men choosing to be more adventurous in their styling, with the likes of a pink cord suit among the retailer’s strong sellers last year.

Richard James, which has counted Hollywood actors including Jacob Elordi, Robert De Niro and Hugh Grant as customers, is owned by US property billionaire and Curzon Cinemas owner Charles S Cohen.

Meanwhile, Mr Dixon joined rival luxury retailers in criticising the so-called tourist tax in the UK.

The Government scrapped VAT-free shopping for tourists a few years ago, a move which particularly affected luxury retailers who rely on affluent tourists.

“It puts us at a completely unfair disadvantage compared to those with stores in Paris or Milan … if you don’t have stores all over Europe, you miss out,” he said.

The third Richard James store opened in Clifford Street, just off Savile Row, on Friday (Richard James/PA)

Reinstating tax-free shopping for tourists is among the measures that business groups are calling on the Chancellor to consider in his spring Budget next week.

Mr Dixon also said he is calling for Savile Row to have protected status in order to be preserved as a bespoke shopping destination.

“Areas like this incredible street are unique to London and they really should have protected status,” he argued.