LVMH to Kering defy luxury slowdown with more stores in Europe

Owners of luxury brands ranging from Gucci to Fendi and Bvlgari opened more stores in Europe last year despite a slowdown in the wider sector. The continent’s leading luxury retail streets saw a 13% rise in new outlets last year, data compiled by global real estate broker Cushman & Wakefield show. Brands owned by LVMH Moët Hennessy Louis Vuitton, Kering and Richemont made up almost a third of those stores. The region saw 96 openings in 2025, up from the prior year but below the 107 seen in 2023. Paris, which saw a drop in 2024 as the city hosted the Olympic Games, made up a little more than a fifth of the new outlets. Why physical retail is becoming more strategic for luxury brands The flurry of ribbon-cuttings comes as retailers focus on attracting customers who are increasingly becoming picky about what they splurge on as a deteriorating outlook for the global economy lowers luxury spending following a post-pandemic boom. Brick-and-mortar outlets have become key to luring buyers, according to Cushman & Wakefield. “The physical store is more strategic, not less,” said Sally Bruer, head of EMEA retail research at the broker. In January, LVMH reported poor Christmas sales and signaled 2026 won’t get much better, dampening hopes of a luxury industry rebound. Three of the fashion giant’s five divisions missed estimates for the fourth quarter of 2025, with Chief Executive Officer Bernard Arnault telling investors the group would limit spending as a result. Sales at Gucci, which is owned by Kering, fell 10% in the same period, although that was the smallest decline in two years. Fragrance a breakout category Still, high-end fashion and accessories accounted for roughly half of the store openings last year, while luxury perfumeries saw an expansion. “We’ve seen six luxury fragrance stores open this year, all in Paris actually,” said Bruer. Fragrances have been particularly popular due to their lower price point when compared to items such as jewelry and watches. LVMH, owner of brands such as Louis Vuitton and Dior, was the most active retailer, followed by Kering whose store openings included two each for its Saint Laurent and Bottega Veneta brands. Richemont, owner of Cartier and Montblanc, saw fewer openings after a couple of years of strong activity, the report added. Low levels of vacancy on popular shopping streets have put pressure on prime rents, which grew by 3.5% last year. Inquiries haven’t cooled so far this year, said Duncan Gilliard, head of central London retail at Cushman & Wakefield. If deal volumes do drop, it will be “because of the record low availability of locations rather than necessarily demand,” he added. By Natasha Voase

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LVMH to Kering defy luxury slowdown with more stores in Europe