Despite global economic upheavals and adverse market conditions, the luxury retail category has demonstrated tenacity and adaptation.
Cushman & Wakefield’s “European Luxury Retail 2025” research predicts that 83 new luxury stores will open in Europe’s top shopping districts in 2024. Although this figure is slightly lower than the 107 openings reported in 2023, it reflects the restricted availability of retail space in the most desirable locales rather than a drop in desire.
Europe’s main retail districts continue to attract both international companies and tourists from across the world. Some of the most popular luxury retail sites are:
Via Montenapoleone (Milan) is officially known as the world’s most costly shopping street. In 2024, rental rates continued to climb, with almost no empty places remaining.
Avenue des Champs-Élysées (Paris) It remains a symbol of Paris and worldwide fashion prominence, drawing top-tier businesses and maintaining steady foot traffic from tourists and shoppers.
Bond Street (London) Known for its finest shops, this street continues to be at the core of Britain’s luxury retail sector, attracting top worldwide names regularly.
Passeig de Gràcia (Barcelona)—Spain’s main luxury shopping street, drawing both local elites and foreign tourists, with the opening of prominent shops and showrooms.
Major luxury businesses like LVMH, Richemont, and Kering continue to choose these avenues as strategic sites. Notably, LVMH dominated new shop openings in 2024 with 15 locations, confirming its leading market position in the luxury class.
Fashion and accessories stores accounted for over half of all new luxury retail openings (41). However, jewelry and watch companies experienced tremendous growth, with the number of openings climbing to 26 from 21 the previous year. This demonstrates buyers’ persistent interest in traditional luxury objects, valued for their investment worth and prestige appeal.
The limited supply of retail space on Europe’s principal luxury avenues has become the primary factor for the general decrease in the number of openings. Nonetheless, this has encouraged businesses to develop new retail space management solutions. Companies are aggressively filling upper and lower building levels, integrating nearby areas, and even acquiring real estate assets to gain long-term control of attractive sites.
Furthermore, luxury companies are venturing beyond traditional retail, investing in hospitality ventures including branded hotels, cafés, spas, and members-only formats. These efforts provide unique consumer experiences and strengthen brand loyalty.
Rental rates have skyrocketed due to a scarcity of inventory and high demand. By the end of 2024, the average rental increase on important streets was 3.6%, resulting in 3% higher rates than pre-crisis 2018 levels. Cushman & Wakefield predicts that rents on Europe’s main luxury avenues would grow by 1-3% every year until 2028.
Thus, despite present issues, Europe’s luxury retail sector remains remarkably stable, critical to worldwide brand plans. In the next years, we anticipate more market transition, with Europe’s main retail streets increasingly becoming hubs for not just commerce but also culture and unique consumer experiences.
