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Savills Global Luxury Retail:
The Geography of Luxury Retailing
6
In 2016, China and
Middle East accounted
for 17% of all luxury
store openings,
compared to
9% in 2017.
The slowing growth in personal luxury goods spend
in 2016 was apparent in the volume of new store
openings in 2017, with the appetite to agree to new
leases, and therefore open new stores, somewhat
muted. Global new store openings* by luxury brands
will be in the region of 350 by the end of the year,
down on the c470 reported for 2016.
While luxury brands have opened fewer stores this
year, what stores they have opened have been
predominately focused on destination cities in
Europe, North America and Asia Pacific markets
beyond China. All these regions have seen a
proportional increase in share of new openings in
2017. In contrast, China and Middle East reported
proportional declines.
Notes: *excludes relocations, re-openings of refurbished
stores, pop-ups and concessions in department stores.
Also excludes store openings by luxury beauty brands.
Luxury store openings in 2017
The refocus on destination and ‘heritage’ markets seen last year intensified in 2017 and is apparent in the cities that topped the rankings for
new store openings. Paris bounced back topping the city rankings this year having ranked second in 2016, this was on the back of improved
operating conditions as tourism to the city rebounded following the security events of late 2015.
In 2017, Europe
accounted for
38% of all luxury
openings, with 28%
in wider Asia Pacific
and 20% in North
America.
Refocus on destination markets
steps up a gear in 2017