Just 29 stores were opened in Europe by three of the biggest luxury companies in the world last year, a 20 per cent decrease from 2023. According to real estate broker Cushman & Wakefield, Christian Dior and Tiffany & Co.’s parent company, Louis Vuitton, opened 15 outlets as opposed to Richemont’s 11 and Kering’s just three. In total, the three businesses opened 36 outlets in 2023 as compared with the number in 2024.
The slowdown is indicative of the luxury market’s sluggish recovery from a remarkable spike in demand following the pandemic, which was followed by a decline in expenditure, especially from Chinese consumers.
Only 83 stores were opened in 12 European nations last year across all high-end brands, compared to 107 in 2023. However, Robert Travers, head of EMEA retail at Cushman & Wakefield, noted that this was also due to a scarcity of prime space on the best streets.
Travers stated that luxury retail is perhaps the most dependent on location among all real estate asset classes. He further emphasised that for luxury houses, it is crucial to have stores in prime locations where consumers can experience a well-curated selection of complementary brands.
