Browse all

Physical luxury shops increased by 77% in 2022

In Milan and London, more and more brands are investing in concept stores

Physical luxury shops increased by 77% in 2022  In Milan and London, more and more brands are investing in concept stores

According to the Global Luxury research conducted by the British real estate company Savills, the number of luxury goods stores in Europe increased by 77% during 2022, reflecting the new wave of tourism that has swept Western countries in the post-Covid period. According to the representatives in charge of the research, international visitors' interest in shopping is significantly influencing the European market, helping Europe to reconfirm itself as the world leader in luxury goods sales.  

Among the most interesting aspects of this report is the fact that there are many more new luxury store openings in major European cities than in the rest of the world, which has seen an increase of only 11%, and China, which has opened 41% more since 2021. Savills also pointed out that brands have started to position their physical stores in more diverse locations than usual, although they're still proving to be interested in the historically favourite cities for tourists, such as Milan and London. The English capital has been the most 'active' in this regard, as according to Savills' researchers, the recent redevelopment of the areas near Bond Street has attracted an increasing number of tourists and investors. Today the street is home to the physical stores of some of the biggest names in luxury fashion, such as Gucci, Chloé, Fendi, and Alaïa, and is also said to be welcoming the properties of Moncler and Off-White. According to the Sunday Times, it is Saint Laurent the brand paying the highest rent on Bond Street, spending over £13 million a year for its multi-storey shop, although in truth the shop is about to undergo a repositioning next to Grafton Street. 

@ldnanna bond street, where the london money truly is #bondstreet #londonbondstreet #bondstreetlondon #bondstreetstation #newbondstreetlondon #londonrich #londonrichlife #londonrichkids #londonmoney original sound - ᴍᴇʜᴍᴇᴛ

In Italy, it is the spaces that blend «experience and concept» those who seem to be spending the most on rent, namely Ferragamo's new Portrait Milano on Corso Venezia, and Louis Vuitton's newly opened store on Via Bagutta, behind Piazza San Babila. And while accessories and handbags retailers led the trend of new openings, with 21% more than in 2021, jewellery retailers - excluding watches - seem to be declining. Building on this analysis, Savills mentioned that, according to research by Bain, the luxury market will have an overall growth of 5-7% until 2030. «Brands will increase the size of their existing shops in key markets,» Savills explained to WWD, «this is likely to mean a continued focus on major global and destination cities, while smaller, high-luxury gateway cities, particularly those in Europe, will move down the agenda.»