Cushman & Wakefield's European Luxury Retail report showed 96 new luxury store openings in 2025, marking a 13% rise from 2024. Major groups LVMH, Kering and Richemont accounted for one-third of openings, while 57 other brands contributed the remainder across 16 cities and 12 countries.

Prime luxury street rents increased 3.5% year-over-year in 2025 and stand 7% higher than in 2018, highlighting constrained supply on coveted thoroughfares. Non-luxury high street rents grew 3.3%, underscoring a broader resurgence in demand for physical retail space.

Brands are shifting toward larger, multi-level flagship stores to reinforce identity and heritage, leading to expansion into adjacent prime districts as core streets reach capacity. This strategy positions physical retail as a cultural statement and critical channel amid evolving consumer selectivity.