- 96 new luxury store openings on leading luxury shopping streets in 2025 as a whole, up 13 per cent on 2024
- LVMH, Kering and Richemont account for a third of the openings – 70 per cent are accounted for by 57 other brands
- Eight of Europe’s top 20 luxury high streets fully let (2024: six high streets)
- Two new openings on Düsseldorf’s Königsallee, and one on Maximilianstraße in Munich
The luxury retail sector in Europe continued to defy general industry challenges in 2025, with a sharp rise in new openings, increasing market participation beyond the global luxury giants, and growing pressure on scarce retail space in high streets. These are the findings of the latest “European Luxury Retail Report” from Cushman & Wakefield. In 2025, a total of 96 new luxury stores opened in 20 prime locations across 16 cities and 12 countries, representing a 13 per cent increase compared to 2024. This underscores the strategic importance of physical locations for luxury brands, which are increasingly focusing on flagship experiences and long-term presence.
Robert Travers, Head of EMEA Retail at Cushman & Wakefield: “Luxury brands increasingly view their stores as cultural statements – as a physical manifestation of identity, craftsmanship and tradition. Brands are therefore investing in larger, more immersive spaces and multi-storey concepts that bring the brand universe to life.”
Fashion, luxury goods and beauty segments drive expansion
The Fashion & Accessories segment was once again the strongest growth driver in 2025: 48 new stores from 40 brands were opened in this sector – accounting for around half of all activity.
The Jewellery and Watches sector confirmed its sustained strength with 28 new boutiques, supported by a slight increase in turnover of 0.5 per cent. In contrast, clothing, footwear and accessories recorded slight declines.
The Beauty & Perfumery segment developed particularly dynamically, especially in Paris, where six openings were recorded in the specialist ‘Haute Parfumerie’ sector alone. Cushman & Wakefield expects Beauty & Perfumery segment to continue expanding in the coming years.
The market is broadening through the expansion of “challenger brands”
The market is showing an interesting dual trend: consolidation at the top and, at the same time, increasing diversification. Whilst brands from the major luxury groups LVMH, Kering and Richemont accounted for around a third of new openings, 70 per cent of openings were accounted for by 57 other brands.
This means the number of “challengers” developing new flagship formats and positioning themselves in prime locations is growing. One example is the Swedish fashion brand Toteme, which opened three new stores on leading high streets in 2025.
Severe supply shortages drive rent growth
Despite strong expansion, there remains a significant supply shortage in Europe’s prime luxury high streets. In 2025, eight of the 20 high streets surveyed recorded a vacancy rate of zero per cent, compared with six in 2024, whilst a further six high streets had availability of less than five per cent. Andreas Siebert, Head of Retail Investment Germany at Cushman & Wakefield: “The tight market has prompted brands to get creative in securing space, including by expanding into upper floors and neighbouring units.”
This chronic shortage of supply continues to drive rent growth in prime locations. By the end of 2025, rents on luxury high streets were 7 per cent above the 2018 level, the year considered a turning point in consumers’ shift towards online shopping. They reached or maintained record highs in several markets. Rent growth has also extended beyond the luxury sector: in 2025, rents on luxury high streets rose by 3.5 per cent, whilst non-luxury high streets recorded growth of 3.3 per cent. This reflects a broader revival in demand for prime physical retail locations.
Germany: Moderate opening figures, but a strong pipeline
In Germany, Munich’s Maximilianstraße and Düsseldorf’s Königsallee recorded a total of three new openings in 2025 – a decline from eight in the previous year. Nevertheless, activity remains high, particularly due to large-scale project developments that will create additional premium space in the future. At Königsallee 20, Chanel opened a new flagship store, whilst Dior set up a temporary location at Königsallee 19 for the duration of the flagship store’s Königsallee 30–32 renovation. In Munich, Bulgari celebrated the reopening of its three-storey boutique at Maximilianstraße 17 following extensive modernisation.
At the same time, several major new-build and refurbishment projects are underway along Königsallee, including: “Le Coeur” by Hines, offering 47,000 m² of mixed-use space, already pre-let to brands such as Diptyque, jeweller Hestermann and Label Kitchen, as well as the Momeni Group’s Trinkaus Karree with a total area of 40,000 m², comprising 2,000 m² of retail and 700 m² of catering space.
The market is also on the move in Munich: Commerz Real is planning the refurbishment of Maximilianstraße 12–14 to upgrade office and retail space. Despite this pipeline, supply remains tight: The vacancy rate in 2025 stood at 1.8 per cent on Maximilianstraße and 3.1 per cent on Königsallee, with the latter comprising just two vacant units. Rents are stable but remain 8–14 per cent below 2018 levels.
Andreas Siebert concludes: “This development impressively demonstrates how robust and strategically focused the European luxury retail sector is. Despite economic uncertainties, brands are investing specifically in their presence at prime locations – even with space at historically tight levels. For both property owners and brands, the quality of the location remains the decisive factor. We envisage a market in 2026 characterized by structural demand, intense competition and a clear focus on the customer experience.”
