Despite economic challenges, the luxury retail sector in Europe continues to expand. According to the Cushman & Wakefield European Luxury Retail 2025 report, 83 new luxury stores opened in 2024 across 20 of Europe’s most prestigious shopping streets.
Limited Availability of Retail Spaces Constrains Growth
The number of new store openings slightly declined compared to 2023 (107 stores), reflecting not only slower sales growth but also a lack of available prime retail spaces. Seventeen key shopping streets reported vacancy rates below 5%, with six of them reaching 0% vacancy.
This scarcity is driving rent increases—average rental prices grew by 3.6% in 2024 and are now 3% higher than in 2018. One-third of Europe’s luxury shopping streets reached record-high rental levels, with Milan’s Via Montenapoleone surpassing all others to become the most expensive shopping destination globally.
Luxury Brands Invest in Prime Locations
Fashion and accessories brands remain the most active players, accounting for nearly half (41) of all new store openings. The jewelry and watch sector is also experiencing strong growth, with 26 new stores opening in 2024, up from 21 in 2023.
Luxury groups LVMH, Richemont, and Kering collectively opened more than a third of all new stores, with LVMH leading the way with 15 new locations.
Future Outlook: Larger Stores and Strategic Investments
Luxury brands are increasingly focusing on expanding their stores to offer exclusive customer experiences. Given the limited availability of prime retail spaces, many are exploring creative solutions such as merging existing stores or relocating to larger buildings.Looking ahead to 2025 and beyond, another wave of luxury store openings is anticipated, reaffirming the continued attractiveness of physical retail in the high-end sector.
