Luxury retail brands lease 650,000 square feet in just 12 months

Thursday, Oct 5, 2023

This past year has been record-setting in the luxury retail sector, and there’s no turning back now. According to JLL, luxury groups including LVMH, Kering and Richemont added 650,000 square feet of retail space in the past 12 months.

The US. saw luxury sales reach $70 billion last year (up +9% from 2022), accounting for 34% of global luxury sales. The world’s leading luxury conglomerate LVMH, which includes brands like Louis Vuitton, Dior, Loewe and many others, opened 108 new stores. Kering followed in pursuit, with 100 new stores for brands such as Gucci, Saint Laurent, Bottega Veneta and Balenciaga.

Stores fuel growth the same way growth fuels store expansions – they both work hand-in-hand to acquire shoppers and boost brand engagement. Luxury brands are prioritizing large spaces and markets in the east and west coasts, in primarily big cities such as NYC, LA and Miami. On average, new lease sizes are over 5,000 square feet in order to design distinctive, spacious and upscale spaces that are inviting to shoppers and allow them to immerse themselves into the brand’s ecosystem. 

Shopping malls are a prime destination for shoppers that serve as an ideal hub for luxury retailers looking to expand their reach in the market. Mall operators are leasing to luxury brands in an effort to create a premium shopping destination and enhance the overall shopping experience. According to JLL’s report, luxury retailers opened 38% of new stores in shopping malls in the past year, following the refreshing appeal of malls that now focus on luxury offerings.

Miami’s Aventura Mall has expanded its luxury footprint by providing an elevated shopping experience. An entire wing is devoted to luxury names such as Hermès, Louis Vuitton, and Cartier. The mall also plans to unveil additional brands such as Ferragamo and Amiri later this year. Another example is Westfield Topanga in California, who unveiled a new luxury wing, including a 7,500 square feet Hermès store as well as renowned brands such as Bottega Veneta, Burberry, and Celine.

It’s all about reinventing the game and those in the mall and luxury retail space that continuously reinvent themselves are continuing to attract shoppers and grow at a rapid rate. 

Source: Luxury Retail – Forbes
Photo Credit:  Luxury Retail – Forbes

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