Luxury store openings across Europe jump 77% in 2022

China continued to dominate, accounting for 41 per cent of all new luxury store 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, according to the latest Savills Global Luxury report.

Similar to Europe, the Middle East also enjoyed an uplift in luxury openings, seeing a 125 per cent increase on 2021 (albeit from a relatively low base). This was a continuation of 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.

“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,” commented Anthony Selwyn, co-head of prime global retail at Savills.

“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 of 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,” said Marie Hickey, commercial research director at Savills.

Fibre2Fashion News Desk (NB)