The retail vacancy crisis on the Champs-Élysées is now firmly behind it. In the wake of the pandemic lockdowns, empty units proliferated along the French capital’s flagship thoroughfare, but the Paris 2024 Olympic Games have decisively reignited its appeal. According to Newmark, a commercial real estate adviser, the Olympic euphoria—which saw many retailers open or rethink their concepts—is set to continue into 2025. The vacancy rate stands at 3.5%, and new international names, ranging from luxury to sport, will soon be setting up shop.

“The resurgence of activity on the Champs-Élysées has prompted several retailers to modernise their concepts, relocate or expand their space to anticipate the return of tourism and enhance the customer experience,” says Paris market expert Antoine Salmon. “Turnover is significant but varies widely by brand, and comparisons with the pre-Covid period remain difficult. What is certain is that brands that have renovated or expanded their flagship stores are seeing an increase in sales. Profitability is a more complex question, but a store on the Champs-Élysées is a powerful communications platform, which justifies treating part of the rent as a marketing investment.”

Investments remain high and, according to the firm, continue to hover around €15,000 per square metre per year. Although the Champs-Élysées has fewer very large stores than counterparts such as New York’s Fifth Avenue, Oxford Street and especially London’s Regent Street, 42% of the floor space is in units larger than 1,000 square metres. In other words, opening a store on the avenue is beyond the reach of many businesses.

Yet even though footfall has dipped slightly since the start of the year, Newmark notes that many are still eager to engage with the European and international shoppers who throng the 1.2 kilometres of the “world’s most beautiful avenue”.

While work is still underway for the LVMH group, which is renovating HSBC’s former French headquarters at 103-111 on the avenue, the group is installing a flagship for its American jeweller Tiffany at number 100. Luxury has clearly gained ground on the avenue, now accounting for 28% of the offer, compared with less than 10% in 2017. That is almost on a par with the mass-market segment, which represented around half the players on the avenue a decade ago, Newmark notes. And many of the as-yet unannounced projects are being driven by luxury players.

In luxury, Balenciaga, part of the Kering group, will open at number 125, while Canada Goose’s high-end outerwear is expected at 73. The avenue continues to be a destination for new sports brands. After On Running and Lululemon, Alo Yoga, a fast-rising premium sportswear brand, is to set up shop across nearly 2,000 square metres in place of the former Zara at number 92… Zara, which used its former premises for retail but primarily as additional storage, will further expand its flagship at number 74 in 2026.

Following Onitsuka Tiger, Polène, Restoration Hardware and Delsey, and with these upcoming openings, what is the potential for new entrants? For the Newmark team, opportunities remain. “Around 20 brands present on Oxford Street, Regent Street and Fifth Avenue are still absent from the Champs-Élysées, mainly in the sports (Puma, NBA, Skechers, etc.) and fashion (Mango, Uniqlo, etc.) sectors. This gives an idea of how the avenue’s retail offer may evolve. Some of these brands are currently actively exploring opportunities to establish a presence there. Others that had left the avenue could return, given the unparalleled impact, in terms of brand visibility, of a flagship on the Champs-Élysées,” concludes the commercial real estate specialist.

Icade’s 5,000-square-metre project at 29-33 Avenue des Champs-Élysées will undoubtedly attract a great deal of interest.