The global retail market is expected to reach $142 billion by 2030

Following a slight slowdown in 2024, physical retail is regaining its leading role, supported by the recovery in tourism and demand for more immersive in-store experiences. It is primarily the fashion and accessories segment that is performing particularly well, accounting for half of all new store openings and confirming its role as the driving force. The momentum is driven primarily by North America, but the effects are spreading to markets worldwide.

In Europe, the trend is also evident. The latest report from Cushman & Wakefield revealed that 96 new luxury boutiques opened in 2025 on the continent’s main shopping streets, representing a 13% increase compared to the previous year.

However, this expansion remains highly concentrated. Major capitals such as Paris, Milan and London account for the majority of investment, against a backdrop of rising rents and a scarcity of premium locations. The vacancy rate is now close to zero on the most famous high streets, thereby intensifying competition between luxury houses. In this landscape, the sector’s giants—LVMH, Kering and Richemont—account for nearly a third of new openings, demonstrating their ability to secure the most strategic locations.

Beyond sheer numbers, it is the very function of the store that is evolving. The mono-brand store is increasingly becoming a space for experience, storytelling and customer loyalty. Flagship stores are transforming into hybrid spaces, capable of blending retail, culture and services, ready to cater to a clientele seeking personalisation and emotional engagement. These changes explain why, despite the expansion of e-commerce, brands continue to invest heavily in their physical network.

This trend is part of a broader transformation in distribution strategies. Historically reliant on wholesale – department stores and multi-brand retailers – luxury houses are now favouring a direct-to-consumer model. Controlling their own boutiques allows them to better manage their image, pricing and customer relations.

Wholesale has not, however, disappeared: it retains a role in amplifying visibility, particularly in emerging markets, whilst the single-brand store is establishing itself as a genuine strategic pillar and a formidable marketing tool. Against a backdrop of mixed growth in the luxury sector, this control over the network appears more crucial than ever. The store is no longer merely a point of sale: it is gradually becoming a key asset for enhancing desirability and defining brand identity.