Luxury brands from LVMH to Kering defy slowdown with more new store openings in Europe

[LONDON] Owners of luxury brands ranging from Gucci to Fendi and Bulgari opened more stores in Europe last year despite a slowdown in the wider sector.

The continent’s leading luxury retail streets saw a 13 per cent rise in new outlets last year, data compiled by global real estate broker Cushman & Wakefield showed. Brands owned by LVMH Moet Hennessy Louis Vuitton, Kering and Cie Financiere 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 in 2023.

Paris, which saw a drop in 2024 as the city hosted the Olympic Games that summer, made up a little more than a fifth of the new outlets.

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.

Bricks-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 Europe, Middle East and Africa retail research, at the broker.

In January, LVMH reported poor Christmas sales and signalled 2026 will not get much better, damping 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.

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Sales at Gucci, which is owned by Kering, fell 10 per cent in the same period, although that was the smallest decline in two years.

Still, high-end fashion and accessories accounted for roughly half of the store openings last year, while luxury perfumeries posted an expansion.

“We have 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 jewellery and watches.

LVMH, owner of brands such as Louis Vuitton and Dior, was the most active retailer. It was followed by Kering, whose store openings included two each for its Saint Laurent and Bottega Veneta brands.

Richemont, the 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 per cent last year.

Inquiries have not 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. BLOOMBERG