The success of Europe's luxury high streets has been demonstrated by both retailers and consumers, and has resulted in the opening of 107 shops on 20 key high streets in 16 cities and 12 countries by 2023, according to Cushman & Wakefield's exclusive report on luxury retail in Europe.
Luxury brands hit the high streets
Almost 70% of new luxury shops are dedicated to fashion and accessories. With a third of these openings attributed to LVMH, Kering and Richemont, demand for premium locations is driving up rents on the most prestigious high streets, despite limited vacancies. Among the 20 streets featured in the report, 16 have vacancy rates of less than 5%, including seven with no available space. This, combined with the strength of the retailers, has boosted rent growth on luxury high streets: estimated at +3% in 2023, average rent growth on these high streets in Europe is almost double the average for European high streets (+1.6%).The Champs-Élysées avenue in Paris is ranked as one of the five most expensive retail locations in the world. As location has always been, and will remain, a key factor for luxury retailers, demand is underpinning the sharp rise in rents.
Paris consolidates its position as Luxury destination with 25 new Openings
Paris has recently seen a renewal of activity on its main luxury shopping streets. A total of 25 new shops have opened on the city's four main high streets, with rue Saint-Honoré and avenue Montaigne each hosting nine new openings. In addition to these store openings, luxury brands have also recently expanded or upgraded their retail spaces: these include Bottega Veneta and Loewe on avenue Montaigne, Alexander McQueen and Comme des Garçons on avenue Saint-Honoré, and Dior on avenue des Champs Elysées.Paris remains very attractive to luxury brands and is still one of the world's most sought-after destinations in this sector, with vacancy rates of less than 4% on the four main high streets.
