Luxury, Fashion Brands Competing for Prime Retail Space Across Europe

LONDON — Prime retail space is increasingly scarce in Europe‘s big cities, forcing brands to compete more fiercely for strategic positions, according to Cushman & Wakefield’s latest European Luxury Retail report.

The commercial real estate firm said there were 96 luxury store openings in 2025, up 13 percent compared with the previous year. Driving that growth were brands owned by LVMH Moët Hennessy Louis Vuitton, Kering and Richemont, which accounted for nearly one-third of openings.

The remaining 70 percent of openings in 2025 came from 57 other brands, and brand groups, such as Toteme, which opened three stores on Cushman’s key streets in 2025, according to the report which looked at cities such as Milan, Paris, Geneva, Madrid, Lisbon and London.

The 96 stores opened across 20 key luxury streets in 16 cities and 12 European countries showed the “renewed strength of physical retail as brands prioritize flagship experiences and long‑term strategic locations,” according to Cushman.

Robert Travers, head of Europe, Middle East and Africa retail at 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 multilevel spaces that bring brand universes to life.”

Travers said as the most coveted streets reach capacity, “retailers are expanding into neighboring prime districts to secure the right canvas for that brand expression. Europe’s luxury corridors remain essential anchors in global expansion strategies.”

The report said luxury rents last year were 7 percent above the level seen in 2018, when consumers turned increasingly to online shopping.

In 2025, rents on luxury streets rose by 3.5 percent, while “non‑luxury” high streets recorded 3.3 percent growth, reflecting a broader revival in demand for prime physical retail locations, according to Cushman.

Fashion and accessories remained the largest driver of new openings in 2025, with 48 stores from 40 brands opening across the 20 tracked streets.

Cushman said those openings represented half of all activity, and an uplift of 17 percent compared with 2024. The jewelry and watches category saw 28 new boutiques in 2025, flat on the previous year, but nearly 30 percent higher than in 2023.

Cushman said in beauty and fragrance “momentum is building,” particularly in Paris, which saw six haute perfumery openings in 2025. Beauty and fragrance will continue to grow in key luxury destinations in the coming years, it added.

The lack of space means brands are having to be resourceful when it comes to retail expansion.

Last year, eight of the 20 profiled streets recorded zero percent vacancy, with a further six streets below 5 percent in terms of availability, according to Cushman.

“Tight conditions have prompted brands to be creative in securing space, including expanding into upper floors and neighboring units as well as looking to other streets in nearby areas,” the report said.

Cushman described the market as “increasingly defined by scarcity value, flagship investment, and a rising emphasis on consumer experience.” It added that “with physical stores remaining essential to luxury brands’ strategies for success, the outlook for Europe’s leading luxury corridors remains resilient heading into 2026.”