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Savills Global Luxury Retail:
The Geography of Luxury Retailing
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While China saw fewer new store openings in 2017, the volume and
habits of its residents when it comes to luxury goods spend had
an important bearing on luxury store openings in the wider region.
Singapore and Tokyo are expected to see year end store openings
in line with that reported in 2016, driven in part by strong historical
growth in Chinese tourism.
However, in the case of Tokyo its domestic spend market also
remains a major attraction particularly as Chinese tourism growth
has started to slow. Similar drivers have raised the appeal
of Toronto, Los Angeles and Kuala Lumpur to expanding luxury
brands, helping to place both cities in the top 10 for new luxury store
openings in 2017.
Despite fewer new store openings globally, brand strategies to invest in more
strategic locations and streamline their portfolios, has seen some brands
relocate/consolidate stores and open larger stores in the ‘best’ locations in a
given market; a trend also apparent in new store openings.
Top 10 cities for luxury store openings in 2017
5.9%
OF ALL LUXURY STORE
OPENINGS WERE IN
PARIS
5.9%
OF ALL LUXURY STORE
OPENINGS WERE IN
TOKYO
5.0%
OF ALL LUXURY STORE
OPENINGS WERE IN
LONDON
5.0%
OF ALL LUXURY STORE
OPENINGS WERE IN
MILAN
3.7%
OF ALL LUXURY STORE
OPENINGS WERE IN
NEW YORK
3.1%
OF ALL LUXURY STORE
OPENINGS WERE IN
KUALA LUMPUR
3.1%
OF ALL LUXURY STORE
OPENINGS WERE IN
TORONTO
5.6%
OF ALL LUXURY STORE
OPENINGS WERE IN
SINGAPORE
4.7%
OF ALL LUXURY STORE
OPENINGS WERE IN
HONG KONG
3.7%
OF ALL LUXURY STORE
OPENINGS WERE IN
LOS ANGELES
The average store size of new openings
globally increased to c.3,300 sq ft this year
up from c.3,100 sq ft in 2016. Even the
most ‘expensive’ real estate cities such as
New York and Tokyo saw average store
sizes increase in 2017.