THE LUXURY RETAIL MARKET
22 openings by end September
With tourists returning to Paris (12% year-on-year increase in foreign visitor hotel arrivals at the end of June), activity in the luxury retail sector rose over the first three quarters of 2018. 22 openings were recorded by the end of September, compared with 19 over the same period last year. Because of the high level of signatures realized in 2017, this recovery is a clear indication of the capital’s strong appeal for luxury retailers. Over 90% of the openings seen over the period were recorded in Paris, with the remainder confined to the Côte d’Azur.
Traditional players in the luxury market still consider Paris to be an attractive market. However, for almost the last three years the number of new entrants has slowed. This phenomenon is partially linked to high rental values which can limit the development plans of some retailers that don’t have the same financial capacities as larger companies. Accounting for over 25% of the openings by the end of September, pop-up stores now make a significant contribution to transaction volumes and now are fully integrated into the luxury market. Openings of this type were mainly concentrated in the area between Madeleine/Saint-Honoré/Vendôme. Back in 2012, this format accounted for just 4% of openings.
Activity over the first three quarters of 2018 was driven by retailers in the fashion (59%) and watches and jewellery (18%) sectors; this is in line with the average recorded for the last five years. The beauty sector also appears to be a significant growth area for the luxury houses. The market share for these sectors should soon increase due to imminent openings by Chanel and Dior.
For more information, please download the pdf : https://f.datasrvr.com/fr1/518/62011/Point_luxe_Sept.2018_VF_en-GB.pdf?cbcachex=584634
Cushman & Wakefield