After years of exceptional growth, the luxury retail market in Europe is normalising. Nevertheless, it remains a very dynamic sector, serving as an example and forerunner for the rest of retail. Therefore, the following trends are useful for all…
1. Physical shops remain essential
Physical shops remain an essential element of luxury retail strategy. In 2023, luxury brands opened 107 shops on twenty major luxury arteries in sixteen European cities. Major luxury groups such as LVMH, Kering and Richemont accounted for a third of these openings.
Interestingly, luxury brands are opting for increasingly large premises. Despite the possibility of digitising part of the shopping experience and increasing the product offering via screens, for example, but with a smaller range on site, demand for larger retail spaces continues to grow.
