The latest Cushman & Wakefield European Luxury Retail 2025 report shows that the European luxury retail industry continued its growth in 2024, albeit at a more moderate pace compared with previous years, while Romania became an emerging luxury market with plenty of room to grow, despite the 120% growth between 2019 and 2023.
European luxury retail sales increased by 4% vs. 2023, but below the growth rates recorded in 2023 and 2022, which stood at 7% and 23%, respectively. This shows that the market has entered a phase of normalization, the report says.
As a result, the number of new store openings declined and luxury brands began adopting more selective strategies, focusing on expanding existing stores and investing in premium commercial properties. In 2024, only 83 new stores opened across 20 shopping streets in 16 European cities, compared with 107 in 2023. Most were in key luxury markets in countries around Western Europe.
The Czech Republic, particularly Prague, stood out in Eastern Europe, with five luxury brand store openings in 2024.
Meanwhile, Romania is shaping up as an emerging luxury market, although this sector’s development has been hampered by the limited availability of suitable high-street retail spaces. However, Calea Victoriei could become an increasingly relevant destination for luxury brands in the near future, given the announcement of several investment projects aimed at refurbishing historical buildings which could accommodate premium retailers, Cushman & Wakefield stresses.
The local expansion has been kickstarted by Louis Vuitton, which opened a store last year within the InterContinental Athenee Palace Hotel and the Italian brand Zegna, which recently launched a mono-brand store in a historic villa near Calea Victoriei.
The next wave of luxury entries includes Dior, Saint Laurent, Celine, Valentino, Hermès, Chanel and Guerlain, as announced by Hagag Development Europe, which will dedicate approximately 4,000 sqm to luxury retail following the complete refurbishment of Stirbei Palace.
“An analysis of the performance evolution of the leading luxury brands in Romania shows that their cumulative sales grew by 120% between 2019 and 2023, despite a relatively low number of new store openings during that period. However, the market has yet to reach its full potential and creating a favorable environment for these brands is essential to attracting new names in Bucharest,” said Raluca Zlate, Senior Consultant Retail Agency, Cushman & Wakefield Echinox.
Despite the slowdown in growth, demand for luxury goods remains strong, driven by the high-end segment and the resurgence of international tourism which increased by 11% compared to 2023, surpassing pre-pandemic levels for the first time.
This year, the luxury retail market is expected to continue its cautious expansion, with strategic investments and moderate sales growth. Brands will remain focused on exclusivity, flagship locations and integrating retail with hospitality experiences. At the same time, competition for premium retail spaces will remain fierce.
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