The latest Savills worldwide Luxury Retail 2025 Report shows that worldwide luxury retail has endured despite economic challenges, with key markets experiencing strong rental growth in 2024. More than 75 per cent of the 21 regions studied saw a rise in prime rentals or no change at all.
Last year, this tendency reversed after the number of new openings fell in 2023. There was a 12 per cent increase in the number of new stores opening worldwide. Although it decreased from 41 per cent in 2023 to 40 per cent in 2024, China continued to be the largest source of new openings worldwide.
Store counts increased most in the Asia-Pacific region, with the exception of China. With 24 per cent of all new openings worldwide, the area outpaced both North America and Europe. Japan continued to be the region’s biggest market for new openings in the absence of China.
Global Alpha cities and smaller destinations regained prominence as a result of the revival of international travel, as anticipated for 2024. The increased concentration of affluent people in these marketplaces further supports the attention on global Alpha cities, which act as the main nodes in the global economic network and have a major impact on trade, finance, and culture all across the world. The excellent success of certain ultra-luxury labels, including Chanel and Hermès, indicates that their spending has been more impervious to the present downturn.
Shanghai, Beijing, and Tokyo—all significant Alpha cities in the Asia-Pacific region—were the top three cities for new store openings in 2024. All three witnessed an increase in new openings compared to 2023, as did Hong Kong (9th ranking) and Singapore (5th rank), two additional global Alpha cities in the area.
