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Luxury retail boom is in full swing, fueled by brick-and-mortar retail

Thursday, Sep 21, 2023

A recent report from JLL shows that the retail sector is booming, with no signs of slowing down anytime soon. Luxury retailers are thriving in a post-pandemic environment from the combination of pent-up demand and robust retail expansions. And, when it comes to expansions – malls are the ideal market, accounting for 38% of new store openings. 

In the US, luxury sales reached nearly $70 billion in 2022, and are forecasted to exceed $75 billion in 2023. Retailers in this sector recorded significant retail growth across the board last year, noting that store expansions have been the main driver behind it.

“For this report, we looked at the activity of major luxury players and where they opened stores,” JLL’s report stated. “Our research reinforced a familiar omnichannel story: strategic physical expansion plans, coupled with enhanced e-commerce capabilities, have resulted in robust gains for luxury retailers as they leased over 650,000 square feet in the last year.”

Covered in the report are retailers such as Louis Vuitton, Dior, Fendi Tiffany & Co, Loewe and Bulgari brands; Kering Group’s Gucci, Saint Laurent, Bottega Veneta and Balenciaga flags; and Richemont’s Cartier, Van Cleef, Piaget and Chloe brands.

Other notable highlights from the report include:

  • The US remained the largest luxury market globally last year, accounting for an estimated 32% of global luxury sales.
  • Many malls have begun allocating significant percentages of their layouts to create new luxury wings, underscoring the importance of this category in mall performance.

Source: Luxury Retail – InStore
Photo Credit: Luxury Retail – InStore

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