Three of the world’s largest luxury conglomerates opened just 29 stores in Europe last year, down 20% on 2023 in the latest evidence of a slowdown in the sector.
Bloomberg
LVMH Moët Hennessy Louis Vuitton SE, which owns Christian Dior and Tiffany & Co., opened 15 stores ahead of Richemont at 11 and Kering at only three, said real estate broker Cushman & Wakefield. By contrast, the three companies opened 36 stores in total in 2023.
The slowdown reflects the luxury industry’s choppy recovery from an extraordinary surge in demand after the pandemic, followed by a slump in spending, particularly among Chinese shoppers.
LVMH saw its profit sink last year and Kering’s annual recurring operating income fell by almost half to €2.55 billion ($2.6 billion) — its lowest since 2016. Richemont is faring better recording a double-digit jump in sales in the fourth quarter, amid resilient demand for “hard luxury,” like jewelry among its wealthiest clients.
Luxury precincts
Overall, across all high-end brands, only 83 stores were opened in 12 European countries last year, down from 107 in 2023, although this was also driven by a lack of prime space on the best streets, said Robert Travers, head of EMEA retail at Cushman & Wakefield.
“Luxury retail is arguably the most locationally sensitive of all real estate asset classes,” said Travers.
The 20 main luxury shopping streets surveyed — such as Avenue des Champs-Élysées in Paris and Bond Street, London — had fewer than 10% empty stores last year. Six of them had no vacant space at all. Luxury rents continue to surge and were up 3.6% on average in 2024.
“Retailers have continued to double down on key luxury precincts,” said Travers, but only when they can find the right store on the most exclusive streets, with bigger stores particularly in demand.
Larger shops allow brands to incorporate features like private VIP areas for their richest customers.
There has been a significant increase in high-end retailers asking for bigger stores on London’s Sloane Street, including LVMH’s Dior and Kering’s Bottega Veneta, according to Hugh Seaborn, chief executive officer of Cadogan Estates, which owns a large chunk of the UK capital’s exclusive Chelsea district.
Cadogan Estates completed a £46 million ($58 million) redevelopment of Sloane Street last month, with the vacancy along the road falling from 11% in 2023 to 8% in 2024, according to Cushman & Wakefield’s report.
The important thing for luxury houses is to have their stores in the best locations where consumers can “see a broad, curated mix of complementary brands,” he told Bloomberg News on a call.
Wednesday this week will see Icelandic outerwear brand 66°North launching its SS25 collection ‘Blurred Seasons’. And it comes with its first Chris Burkard design collab and the new Helgafell running line, based on the UK-originated activity of fell running. There’s also a supporting campaign.
66°North
For SS25, 66°North said it “exports its blurred season dressing beyond Iceland to the global community of adventurers, travellers, and everyday commuters experiencing a wide variety of climates and lifestyles”. The “protective layers provide the foundation to the entire collection”, with the brand’s signature shell jackets at the forefront, such as its most technical Hornstrandir Gore-Tex Pro and “everyday go-to” Polartec Snæfell, while also offering lighter shell layers for high summer.
As mentioned, this season, 66°North introduces its first design collaboration with long-term brand ambassador, photographer, and Iceland-based explorer, Chris Burkard. The collection includes various multi-use jackets and shorts “inspired by [his] love of movement”.
And the company said that “tapping into the overarching theme of blurred seasons, the collection provides layers you can count on in the mountains, from the unexpected storm to a cold snap in the valley”.
Also newly developed for SS25 is the brand’s new Helgafell running line, designed in partnership with UK-based Rory Griffin, the trail runner and founder of Orienteer Magazine and Studio.
Helgafell is a collection “rooted in Iceland’s rugged and harsh terrain, designed with functionality at the forefront of each piece to manage weather comfortably and safely during trail runs”.
But the company said that while it’s “synonymous with Icelandic locals, it also taps into the UK and European sport of fell running”.
Born in the North of England and in Scotland, this sport — which is also known as hill running — “takes athletes and enthusiasts out into diverse terrain where they must focus on their navigational skills and preparation for the journey, with functionality first”.
So the range features “shorts with stuffable pockets and packable jackets with storage for race fuel and additional phone storage”.
The company also updated its core Straumur swim line for the season with new fabric and colour options, and its heritage ‘Kría’ capsule is also back for SS25. The collection, named after the arctic tern, dates back to the 1990s when the collection was first introduced in Iceland. This season, the inspiration comes from camping and love of the outdoors, bringing together both technical elements and lifestyle.
Local council-owned Charter Walk Shopping Centre in Burnley is welcoming a bigger, more prominent JD Sports flagship store.
Centre asset manager Addington has secured a 10-year lease for the relocated unit, moving from its current 3,973 sq ft store to an increased ground floor 5,817 sq ft with a new address taking in The Mall and adjoining Fleet Walk.
The new unit, situated opposite River Island and Superdrug, “provides an enhanced shopping experience for customers in one of the most popular stores within the scheme”, Addington said.
Works to amalgamate six vacant units for the new store are already under way, with the opening targeted for summer.
Matthew Allen Principal of Addington said: “We are delighted that JD Sports, who has been a key part of Burnley’s retail landscape for over 20 years has recommitted to the shopping centre. Occupancy across Charter Walk remains very high. By consolidating smaller units into larger, modern retail spaces, the Centre is securing the long-term presence of national retailers, enhancing the overall sustainability of Charter Walk as a thriving destination for the local community.”
JD Sports’ recommitment to the shopping centre follows on from a series of other high-profile retailers upsizing in Charter Walk, “demonstrating strong confidence in the shopping centre’s future”. They include Shoe Zone signing a five-year lease on a bigger 3,025 sq ft unit and Specsavers, signing a 10-year lease on 4,999 sq ft space, both doubling the size of their stores.
The 375,185 sq ft centre is home to other national retailers including River Island, Superdry and Boots.
Castore continues to extend its association with cricket. Already kit partner for the England and NewZealand men’s and women’s national teams, the premium sportswear brand has agreed another multi-year partnership at county level with Lancashire CCC.
It joins fellow county sides Yorkshire, Surrey, Worcestershire, Middlesex and Kent.
Under the terms of the new deal, Castore will become the official kit supplier and exclusive retail partner with the kit featuring the Lancashire red rose being worn by the Club from April. The new design will be ready in time for the Lancashire Men’s and Women’s (Lancashire Thunder) first domestic fixtures of the season.
Fans will be able to buy the new kit, which will be worn by England internationals including Jos Buttler, Sophie Ecclestone, Liam Livingstone, Saqib Mahmood and Phil Salt as well as all-time cricketing great Jimmy Anderson, via the Lancashire Webshop.
The timely association coincides with Lancashire purchasing a 70% stake in its Hundred team, Manchester Originals, who will also wear a Castore-designed kit.
Lancashire CCC’s home ground, Emirates Old Trafford, will host sides including India and South Africa against England this summer, as well as the County Championship and Vitality Blast fixtures.
Castore founding partner Tom Beahon said: “Lancashire [is] a club that is close to our hearts – especially my brother and co-founder Phil, being his former club. It is also close to our business in Manchester and we both have strong ambitions to continue to promote cricketing excellence at the elite level and through grassroots participation, particularly with Lancashire’s development at Farington due to open in 2026, with the new community cricket oval set to inspire the next generation of cricketers in the county.
“It’s a pleasure to work with Lancashire and develop our relationship with another key part of the cricketing community. We think it’s a brilliant time to be bolstering our presence in cricket, as summer approaches and the UK plays host to some incredible international fixtures before the Ashes Tour later this year.”
Founded in the Wirral in 2016 by brothers and former athletes Tom and Phil Beahon, Castore has grown to become a global brand, working with a range of the world’s most popular sports, including football, rugby and Formula One.