Europe’s luxury retail sector continued to defy wider industry headwinds in 2025 with a sharp rise in store openings, deepening market participation beyond the global luxury powerhouses, and intensifying pressure on scarce high‑street retail space, according to Cushman & Wakefield’s latest European Luxury Retail report.
A total of 96 new luxury stores opened on 20 key luxury streets across 16 cities in 12 European countries in 2025. This was up from 85 in 2024, signalling the renewed strength of physical retail as brands prioritise flagship experiences and long‑term strategic locations.
Robert Travers, head of EMEA Retail, Cushman & Wakefield, said: “Luxury brands increasingly see their stores as cultural statements – a physical manifestation of identity, craft and heritage. That’s why we’re seeing larger, more immersive flagships and multi‑level spaces that bring brand universes to life.
“As the most coveted streets reach capacity, retailers are expanding into neighbouring prime districts to secure the right canvas for that brand expression. With 96 openings in 2025 and luxury rents 7% above 2018*, Europe’s luxury corridors remain essential anchors in global expansion strategies.”
Fashion, hard luxury and beauty segments strengthen
The fashion & accessories segment of the market remained the largest driver of new openings in 2025, with 48 stores from 40 different brands opening across the 20 tracked luxury streets. This represents half of all activity and an uplift of 17% on 2024. Jewellery & watches sustained its multi‑year strength with 28 new boutiques in 2025 (flat year-on-year/YoY; 28 in 2024; 22 in 2023), supported by positive sales growth of 0.5% in 2025 even as clothing & footwear and accessories posted estimated declines of ‑1.2% each (source: GlobalData). In personal goods (beauty & fragrance), momentum is building, particularly in Paris which saw six haute‑parfumerie openings in 2025, with Cushman & Wakefield forecasting beauty & fragrances to continue to grow and expand in key luxury destinations in the coming years.
Market breadth widens as challenger brands expand
The market continues to reflect both consolidation at the top and widening diversification. While brands owned by LVMH, Kering and Richemont accounted for nearly a third of all store openings, a significant 70% of openings came from 57 other brands and brand groups, underlining the depth, resilience and competitive intensity of European luxury retail. These include fast‑growing contemporary brands and specialist houses expanding into new flagship formats, such as Swedish fashion brand Toteme which opened three stores on the key streets in 2025.
Severe supply constraints drive rental growth
Despite the elevated level of expansion, Europe’s prime luxury streets remain severely supply‑constrained. In 2025, eight of the 20 profiled streets recorded 0% vacancy, up from six in 2024, with a further six streets at below 5% availability. Tight conditions have prompted brands to be creative in securing space, including expanding into upper floors and neighbouring units as well as looking to other streets in nearby areas.
This chronic supply shortage continues to drive prime rental growth. By the end of 2025, rents on luxury streets were 7% above 2018 levels, reaching or maintaining record highs in several markets. Rental growth has also broadened beyond luxury: in 2025, rents on luxury streets rose by 3.5%, while non‑luxury high streets recorded 3.3% growth, reflecting a broader revival in demand for prime physical retail locations.
Sally Bruer, head of EMEA retail research, Cushman & Wakefield said: “Luxury retail in Europe continues to demonstrate structural strength. The uplift of store openings in 2025, the sustained performance of jewellery and watches, and the growing momentum in beauty & fragrances all highlight a market that is evolving rather than contracting. What stands out is the depth of activity: with 70% of store openings coming from 57 different brands, expansion is not limited to the major groups. This breadth, combined with record‑low vacancy and record high prime rents, points to a luxury sector built on deep and diversified demand.”
Cushman & Wakefield’s findings highlight a real estate sector that remains structurally strong despite the recalibration of the wider luxury market, and increasingly defined by scarcity value, flagship investment, and a rising emphasis on consumer experience. With physical stores remaining essential to luxury brands’ strategies for success, the outlook for Europe’s leading luxury corridors remains resilient heading into 2026.
