This is wild to us: #Luxury #retailers like Chanel and Gucci are aggressively expanding their US real estate footprint, emphasizing in-person #shopping due to robust #post-pandemic sales and wealthy consumers' preference for physical stores. While Rodeo Drive and Michigan Ave are usually home to these types of brands....they're now venturing into booming cities and regions such as Austin, Nashville, and Florida.
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A wave of European luxury retailers, including Gucci and Chanel, and other high-end brands are expanding more aggressively in the U.S. "They are signing leases for bigger space, offering more food and drink, and venturing beyond their traditional high-street addresses into new markets," as they recognize real estate's importance in brand growth and identity. I've linked the full article below which dives further into the positive leasing trend here: https://lnkd.in/gnPuzk_y #realestate #luxury #luxuryretail #atlanta #southeast #market #retailspace #development #leasingtrends
Gucci, Chanel and Other Luxury Retailers Splurge on American Real Estate
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The U.S. retail real estate market is fairly dismal, with the exception of warehousing and high end luxury brands, tripling the retail sectors square footage leasing over the past year. France’s Van Cleef & Apels, Chanel, and Gucci have all expanded retail space in the United States. Luxury retail sales are up 9 percent this year versus last year. Retailers continue to expand the size of space, up 28% in size of deal from last year. #luxurybrands #luxuryhotels #luxuryhospitality #luxuryretail
Gucci, Chanel and Other Luxury Retailers Splurge on American Real Estate
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Top Luxury brands are investing big in exceptional in-store experiences! Luxury powerhouses like Gucci and CHANEL are investing heavily in creating unparalleled in-store experiences. The recent purchases of $1.4 Billion in Milan & $1 Billion in NY each by Kering (owner Gucci, BALENCIAGA and Saint Laurent) appear to be strategic real estate move. Depicting confidence that these investments will not only captivate shoppers but also foster long-term brand loyalty. Luxury firm Chanel and LVMH are evaluating similar investments. The surge of e-commerce (increase of ~43% in 2020 compared to 2019) since covid resulted in permanent closures of some renowned retail brands. However luxury shopfronts marked for a 38% increase in new store openings & 40% of retail leasing in 2023. For instance, Dior opened new stores in Austin, Detroit and Orlando, while Alexander McQueen launched new locations in Atlanta, Boston, and Charlotte. #realestate #realestateinvesting #retail
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Luxury retailers are investing big bucks in real estate to secure prime locations in the world's most exclusive shopping districts. With cash reserves aplenty, these retailers are freeing themselves from the control of landlords and setting up shop in streets where they want a long-term presence. Prada and Gucci's parent company, Kering, have recently spent over $800 million and nearly $1 billion, respectively, on prime real estate in New York City's Fifth Avenue. Meanwhile, LVMH Moët Hennessy Louis Vuitton is reportedly in talks to acquire the retail space currently occupied by Bergdorf Goodman's men's store. These big-ticket investments demonstrate luxury retailers' commitment to securing their place in the world's most prestigious shopping corridors. It also provides a pulse on available liquidity chasing trophy assets. #trophyassests #luxury #liquidity
Luxury Retailers Are Buying Out Their Landlords
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Interesting article. Makes sense for retail to own their real estate.
In the spring of 2021 I toured Fifth Ave retail. There was one vacant store after another in prime locations. It was so bad that the previous Mayor wanted to start fining landlords if they had vacant space to force new leasing. The worm has turned. Now retail sales are so strong for luxury brands they want to purchase their stores to make sure they can maintain their Fifth Ave locations. Gucci paid nearly $1bb for a 115,000 SF building on Fifth, that is like $8,700/SF. Clearly this is a good time for retailers. https://lnkd.in/gDkUJaQQ
Luxury Retailers Are Buying Out Their Landlords
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A recent Fortune article revealed that Gucci-owner Kering is buying up prime property in New York worth nearly $1 billion, even as the luxury slowdown presses on. The article also notes that luxury retailers have leased 650,000 square feet of space in the U.S. over the past 12 months — a remarkable 160% increase compared to the previous year. This points to a significant vote of confidence in the resilience of retail real estate, projecting it as a "stalwart" through 2024. Luxury retailers, like Gucci, recognize that physical stores provide an immersive environment that online platforms can't replicate, offering an unparalleled sensory journey for shoppers. At Mood Media, we take pride in supporting retailers, including luxury brands, in creating captivating in-store experiences. Our solutions empower brands to elevate their spaces, engage audiences through curated visuals and soundscapes, and immerse shoppers in a multi-sensory journey that enhances brand identity. The investment in prime retail locations by luxury giants underscores the enduring power of physical retail, and we're here to ensure that these spaces are transformed into immersive, unforgettable brand destinations! Read the full article Fortune article here! >> https://bit.ly/47WZw3O #moodmedia #gucci #kering #NewYork #LuxuryRetail #PrimeRetail
Fortune Article
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THE RENAISSANCE OF PHYSICAL RETAIL: LUXURY BRANDS SPLURGE ON US REAL ESTATE #luxury #fashion #retail #stores #experience #strategy #marketing #US #Gucci #Chanel https://lnkd.in/eYT2bvwQ
Gucci, Chanel and Other Luxury Retailers Splurge on American Real Estate
wsj.com
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All things luxury business :: Host of The Luxury Item podcast :: Adjunct professor in luxury marketing at NYU
𝗚𝘂𝗰𝗰𝗶, 𝗖𝗵𝗮𝗻𝗲𝗹 𝗮𝗻𝗱 𝗢𝘁𝗵𝗲𝗿 𝗟𝘂𝘅𝘂𝗿𝘆 𝗥𝗲𝘁𝗮𝗶𝗹𝗲𝗿𝘀 𝗦𝗽𝗹𝘂𝗿𝗴𝗲 𝗼𝗻 𝗔𝗺𝗲𝗿𝗶𝗰𝗮𝗻 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 "Luxury retailers have leased 650,000 square feet of new space in the U.S. over the past 12 months, up from roughly 250,000 square feet the prior year...Strong sales since the worst of the Covid-19 pandemic convinced luxury retailers of the importance of bricks-and-mortar stores and enabled them to open more locations." https://lnkd.in/eBJUdRuM
Gucci, Chanel and Other Luxury Retailers Splurge on American Real Estate
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Selling #Luxury to the 1%. Since the world emerged from 2020′s coronavirus lockdowns, spending on luxury goods has gone into overdrive. But during 2023, aspirational consumers hit by the rising cost of living finally sobered up. As growth of the broader luxury market slows, attracting the top 1 percent of earners, whose well-padded budgets are more insulated from global uncertainty, will be key to driving sales. Already, courting “VICs” — very important clients — has become a strategic focus for #brands. However, engaging this consumer cohort is only becoming more challenging, as competition for their attention intensifies. The dynamic is pushing #retailers and megabrands to implement more sophisticated, differentiated strategies to foster relationships. Gucci opened its first by-appointment store exclusively for servicing the brand’s most important clients in Los Angeles, dubbed “Gucci Salon.” Here, the brand’s most exclusive product ranges are on display, while each appointment is carefully tailored to the needs and desires of each customer. Mytheresa ratcheted up its calendar of elaborate events (often hosted in collaboration with its clients’ favourite brands) offering exclusive access that money alone can’t facilitate: from intimate dinners at designers’ private residences to starry, insider-only shows and parties. Meanwhile, Tiffany & Co. has rapidly expanded its ultra-exclusive high-jewellery division, with a particular emphasis on personalisation. This includes sourcing unrivalled #gemstones and inviting clients to commission #bespoke pieces from chief artistic officer Nathalie Verdeille at its newly renovated experiential flagship in New York. These strategies offer valuable lessons on how cultivating personal relationships and crafting memorable experiences for shoppers can foster an emotional connection to brands, helping them to stand out among competitors and build loyalty among luxury’s most sought-after customers. #luxuryfashion #luxuryretail #gucci #mytheresa #jewelrylovers #tiffanyandco #nyc #toronto #whattowear #womenswear #styleblogger #fashionbusiness #shopblackcaviar #tocca
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💥 Prada's bold move to double down on its retail strategy, with planned investments of €1 billion over the next five years, reflects a significant shift in the luxury retail landscape. The decision comes at a time when demand for Prada's products is rising across various global markets, and high-end luxury consumers are increasingly seeking immersive, experiential shopping experiences. While this strategy presents numerous opportunities, it also poses several challenges, highlighting the pros and cons of physical retail expansion. An must read from FT. https://lnkd.in/d4xtnbx4
Prada’s Patrizio Bertelli on plans for €1bn retail investment
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