Luxury retail shoppers are showing up ready to spend – and retailers are taking note. Luxury sales in the US have remained strong throughout 2022, and are expected to be grow this year. Wealthy consumers continue to buy luxury items, especially with the increase in social events such as parties and weddings.
“The highest-income luxury shopper is forecasted to continue shopping for luxury items, and we anticipate growth in this sector.,” said Margaret Caldwell, Managing Director and Senior Vice President at Northmarq.
Among this growth, luxury retail is also expanding to a wider market reach, following consumers to more diverse cities in the US.
“As a result, we are seeing growth in the luxury retailer segment. This growth appears to largely be occurring within high-profile, Class A and lifestyle projects. So long as the group of wealthy consumers continues to grow, we foresee the category of luxury retail continuing to increase in line,” said Scott Grossfeld, Partner at Cox, Castle & Nicholson.
These consumers are seeking curated, experiential in-store experiences. To eliminate disconnect between shoppers and retailers, a brick-and-mortar space is essential – especially for high-dollar items. High-profile luxury retail shops have seen first-hand the success and vibrancy that physical stores can bring to this market.
“Oftentimes, these interactions allow for greater value by creating brand loyalty and retention, which is extraordinarily important in today’s competitive landscape,” said Adam Rosenkranz, CIO at Christina.
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