Opportunities in Europe for luxury store openings, reports Savills
The research comes from the latest Savills Global Luxury report, which found that the strong performance across Europe saw its global share of new openings climb to 23%, ranking it second to China and ahead of North America. Key openings across the region include Del Core opening on London’s New Bond Street, Celine taking its sixth Parisian store and Ralph Lauren opening in Milan.
Anthony Selwyn, co-head of prime global retail at Savills, comments: “ A relatively fast recovery in luxury spend in the region, helped in part by the return of international visitors, has no doubt helped move Europe back up the agenda for expanding luxury brands. Likewise, a rebasing of rents on a number of key luxury streets, combined with improved availability in some cases, has bolstered leasing activity further.”
Savills goes on to note that globally, there was an 11% increase in new luxury store openings in 2022 as the market continues to outperform the wider retail sector. China continued to dominate, accounting for 41% of all new openings. However, there was a decrease in the total number of luxury openings in China compared with 2021, with weakened occupier confidence likely impacting new acquisitions in the face of rolling lockdowns throughout some parts of the country.
As well as Europe, Savills reports that the Middle East also enjoyed an uplift in luxury openings, seeing a 125% increase on 2021 (albeit from a relatively low base). Savills states that this continues the trend seen during the pandemic, as luxury brands refocus on relatively underserved affluent markets, with Dubai remaining a primary focus alongside emerging locations such as Doha.
Marie Hickey, commercial research director at Savills, adds: “While we have seen a strong number of openings across traditional luxury markets, what has become increasingly clear is that brands are now open to a wider variety locations, a trend we expect to continue. While the major luxury destinations of Milan, London and New York will continue to hold the greatest appeal to many acquisitive luxury brands, availability challenges in these markets will temper activity over the next 12-18 months, meaning new store activity in markets beyond this top tier will continue to expand.”