Savills Global Luxury Retail

Welcome to the Savills Global Luxury Retail 2018 Outlook.

This edition delves into the geography of luxury retail; identifying which

cities have had the most luxury store openings this year, what markets

offer attractive expansion opportunities, and where are the emerging

investment markets in

also detail our 2018 outlook for the

global luxury retail property market.

The unexpected bounce in luxury spend this year, with forecasts through to 2020

revised upwards, should feed positively into occupational demand in 2018.

Improved luxury spend by Chinese consumers points to a resurgence in

store requirements in China, and in those markets that receive high numbers

of Chinese tourists, such as Hong Kong and Macau. However, this activity

will be relativley constrained compared to historical highs with the focus very

much on the prime retail locations in these cities.

Globally, however, 2018 will see a greater focus on strategic and under-

represented markets. This is reflected in the target cities identified by luxury

brands. Savills track the active requirements of 30 luxury brands globally, with

the top target cities in Europe being Frankfurt and Munich, with Paris and

London also featuring in the top five. In terms of global targets it is the US

markets that dominate with Miami, New York and Los Angeles all identified as

key cities for new store openings in 2018/2019.

With our unrivalled knowledge of brand requirements and new entrants into

the market, we are best placed to advise and provide in-depth insight into the

key established and emerging markets.

This is further bolstered through thought leadership and market intelligence

from our specialist luxury retail research team. In recent years we have worked

with a range of clients within the luxury retail sector and advised on a number

of high profile transactions highlighted within this brochure. Our unique global

offering positions us to simultaneously advise on locations, values and key

property criteria throughout all major cities across the globe.

Anthony Selwyn

Head of Global Luxury Retail

Oli Fraser-Looen

Head of Cross Border Retail Investment