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The luxury goods industry is undergoing an unprecedented transformation. It is marked by a renewed interest in physical boutiques and an increased investment strategy in commercial real estate.<\/p>\n
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This is highlighted by Cushman & Wakefield<\/strong>, the world’s leading professional real estate firm, in its comprehensive report on luxury retail in Europe. The study, entitled “European Luxury Retail”,<\/strong> provides an overview of current trends and key market developments.<\/p>\n <\/p>\n With the phenomenon of normalizing luxury demand<\/strong>, the Houses are betting on ever-larger physical stores, enabling them to showcase a broader offer and foster a more immersive shopping experience, especially in the most prestigious locations.<\/p>\n <\/p>\n The year 2023 has thus seen a proliferation of luxury boutique openings across Europe. Cushman & Wakefield reports that 107 new stores have opened in twenty prestigious thoroughfares, covering sixteen cities in twelve European countries.<\/strong><\/p>\n <\/p>\n Around 60%<\/strong> of these openings are in the apparel and accessories sectors, while 20%<\/strong> are dedicated to watches and jewelry, with the remainder including shoes, eyewear and other luxury goods.<\/p>\n <\/p>\n <\/p>\n A third of new openings are attributed to the three luxury giants – LVMH (9%), Kering (11%) and Richemont (13%). France, Italy and the UK<\/strong> accounted for half of these new stores, underlining the importance of these markets for the major brands.<\/p>\n <\/p>\n The remaining two-thirds involve some sixty brands, including Ralph Lauren, Burberry, Stone Island, Moncler, Tod’s, Swatch, OTB Group labels, Roberto Cavalli and Ferragamo<\/strong>. One third of their stores are located in these same three destinations, while the remaining two thirds are in nine other countries.<\/p>\n <\/p>\n In addition, new store openings continue this year. “LVMH has a number of stores scheduled to open on key luxury streets in 2024, notably for its Louis Vuitton, Tiffany, Dior and Fendi brands,”<\/em> the study anticipates.<\/p>\n <\/p>\n “Of the 20 streets analyzed, 16 have vacancy rates below 5%, seven of which no longer have a vacant location”.<\/em><\/p>\n <\/p>\n <\/p>\nDominance of luxury conglomerates<\/h2>\n
Rising rents<\/h2>\n
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