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.
“Wicked” star Ariana Grande walked the Oscars red carpet on Sunday in a sculptural flared pink top and a tulle skirt by Schiaparelli, one of several actors to make bold fashion statements.
Reuters
Whoopi Goldberg wore a shiny blue gown with a flared skirt, while British actress Yasmin Finney sported a black dress featuring feathery attachments that shot over her head.
“A Complete Unknown” star Elle Fanning chose a lacy white gown with a full skirt and black belt, while “The Brutalist” best supporting actress nominee Felicity Jones wore a silver dress with slits and a tie around the waist.
Demi Moore, favored to win best actress for “The Substance,” won a sparkling silver gown with a train flowing behind her.
Zoe Saldana, a favorite to win best supporting actress for her turn in “Emilia Perez,” wore a multi-tiered maroon dress with a sparkling top and long gloves on her arms.
“A Complete Unknown” best supporting actress nominee Monica Barbaro won a voluminous high-waisted pink skirt with a sparkly top. Halle Berry wore a strapless silver gown with shiny small tiles running down the dress, while Gal Gadot chose a bright red gown with a full skirt.
Among the men, the black tuxedo was popular and Oscars host Conan O’Brien sported one. But Jeff Goldblum picked a white jacket and a floral purple shirt with purple flowers attached to his lapel.
“A Complete Unknown” best actor nominee Timothee Chalamet chose a lemon yellow suit and shirt.
Colman Domingo, nominated for best actor for “Sing Sing,” amped up his look with a bright red jacket and shirt and black lapels to go with the black trousers.
Comedian Bowen Yang wore a pink shirt and an embroidered leather jacket with no tie.
The creators behind the animated film “Wallace & Gromit: Vengeance Most Fowl” carried props related to their film, and one of the directors of the documentary feature about Ukraine, “Porcelain War,” carried a small dog in his arms.
L’Oréal Groupe has officially opened its North America Research & Innovation (R&I) Center in Clark, New Jersey.
L’Oreal opens new North America Research & Innovation Center. – L’Oreal
Representing a $160 million investment, the nearly 250,000-square-foot facility is L’Oréal’s largest R&I center outside of France and underscores its long-term commitment to the U.S. market, economy, and workforce. Construction of the center began in 2022, while full-scale operations commenced in February.
The R&I Center will play a key role in developing L’Oréal’s American brands, including Maybelline, CeraVe, Redken, and Kiehl’s. Notable features of the facility include a 26,000-square-foot modular laboratory, a consumer co-creation center that accommodates up to 400 daily participants for product testing, and an on-site mini factory for scaling final formulations before full production.
“The U.S. plays a defining role in shaping the future of beauty. With its diverse and demanding consumers and world-leading innovation ecosystem, it is the ideal environment to drive our vision forward,” said Barbara Lavernos, deputy CEO of L’Oréal Groupe, in charge of research, innovation, and technology.
“This center embodies L’Oréal’s uniquely end-to-end innovation model, from upstream Advanced Research on new breakthrough ingredients to the downstream development of formulas ready for scale-up to deliver high-performance, safe, and responsible beauty solutions.”
The facility joins L’Oréal’s global R&I hubs in France, Brazil, South Africa, India, China, and Japan. It will employ more than 600 scientists, engineers, and researchers. The center will also collaborate with leading academic institutions, biotech firms, and startups to drive advancements in sustainability, inclusivity, and personalization across skin tones, hair types, and beauty preferences.
“The grand opening of our research center in New Jersey represents a transformative new chapter in L’Oréal’s storied history in the United States,” added David Greenberg, CEO of L’Oréal USA and president of the North America zones.
“This investment will enable us to pioneer groundbreaking product innovations for American consumers that anticipate global market needs. And we’re not simply creating products; we’re building a prosperous future of economic growth, powered by American talent.”
Balenciaga launched on Friday a Brand Ambassador Fanclub Series, featuring a lineup of global icons, including Isabelle Huppert, Kim Kardashian, Michelle Yeoh, Nicole Kidman, and PP Krit Amnuaydechkorn.
The series includes T-shirts in Balenciaga’s signature shrunk and boxy fits, alongside a ribbed tank top available in red, white, black, and blue.
As part of the campaign, each celebrity ambassador captured a selfie wearing their corresponding t-shirts, first unveiled as part of the Balenciaga’s Fall 25 collection.
The collection draws inspiration from vintage fanclub merchandise, presenting aged figurative artwork that pays homage to the brand’s ambassadors. Each piece features the ambassador’s printed signature on the back, mimicking the effect of a hand-signed autograph.
The t-shirts retail for $825 and are now available for sale on balenciaga.com.