In 2024, 83 new luxury stores opened on the 20 main high-streets of Europe, located in 16 cities across 12 countries, compared to the 107 openings recorded in 2023. The fashion and accessories segment accounted for almost half of the total openings (41), while jewelry and watch brands opened a total of 26 stores, up from 21 openings in 2023, showing that “traditional luxury” continues to attract consumers in this sector.
Brands owned by major luxury houses LVMH, Richemont, and Kering were responsible for more than a third of the new stores. This total is in line with 2023; however, the proportion among the three brands has changed, as LVMH led the sector with 15 openings in 2024.
The Strategic Role of Physical Stores in Luxury Retail
Physical stores remain at the core of luxury retail strategies, serving as immersive spaces that communicate brand exclusivity, craftsmanship, and heritage. Despite a slowing pace of new store openings, demand for prime locations remains strong, with key luxury streets such as Via Montenapoleone in Milan, Avenue des Champs-Élysées in Paris, Bond Street in London, and Passeig de Gràcia in Barcelona continuing to thrive.
Luxury retailers are increasingly focused on securing and expanding their presence in these prime retail destinations. However, space constraints in key locations have led to creative strategies, including expanding into neighbouring units, converting upper and lower floors, and acquiring real estate assets to ensure long-term control. Luxury brands are also expanding beyond traditional retail by investing in hospitality, including branded residences, cafés, spas, and private member experiences to deepen customer engagement.
Lack of Spaces Drives Up Rents Across Europe
Vacancy rates have also decreased significantly in all markets analyzed by Cushman & Wakefield, with 17 of the 20 main streets registering less than 5% availability, and 6 of them presenting no available space. For this reason, the slight reduction in the number of openings in Europe reflects not only more moderate growth in luxury retail sales but also the difficulty for brands to find suitable spaces in an almost fully occupied landscape.
The scarcity of supply and retailers’ desire to concentrate on a handful of arteries have driven rent growth on these streets by 3.6% in 2024 (3% in 2023), with these values currently being 3% higher on average than in 2018. A third of luxury streets across Europe reached record rents in 2024, including Milan’s Via Montenapoleone, which is now the most expensive retail destination in the world. Cushman & Wakefield forecasts that rents on luxury streets will increase by an average of 1-3% per year between 2025 and 2028.
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