In the face of consumer caution and economic uncertainty, luxury retail remains resilient, with sales exceeding $75 billion in 2023, reflecting a growth rate of 8.6% since 2020. The market is expected to continue growing, reaching $82 billion by 2028.
LVMH reported a remarkable 10% increase in revenue to approximately $95.1 million in 2023, alongside a notable expansion in storefronts, from 5,664 to 6,097. This trend of revenue and store growth was also observed among other major luxury brands.
Despite overall mall traffic declining, luxury brands are successfully opening new stores, with half of new luxury stores launched in the last year located in malls. Key luxury markets like Madison Avenue and Beverly Hills account for a significant portion of these openings.
Even with the rise of e-commerce, which now accounts for 16% of retail sales, luxury brands emphasize the importance of in-store experiences, leading to adaptations like expanding within existing stores to optimize their retail presence.
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