Hue Chen (Retail CRE)’s Post

Brisbane’s Queen’s Wharf precinct is scrambling to find a new high-end retail offering after its world-renowned luxury anchor tenant pulled out of the deal, believed to be worth millions. In 2021, Destination Brisbane Consortium – behind the $3.6b Queen’s Wharf development -sprouted global leader in luxury retail offerings DFS Group Limited part of the $309b Moët Hennessy Louis Vuitton (LVMH ) Group, would provide a sprawling 6000sq m shopping oasis on the riverfront site. It was to include a three-level T Galleria Emporium in the historic Printery Building on George Street; plus a wealth of its luxury brands, including Louis Vuitton, housed across 16 freestanding stores, making it DFS’s largest shopping footprint in Oceania. But the premium retail group has abandoned the deal, believed to be worth millions of dollars, leaving Destination Brisbane Consortium desperate to find a replacement.

Luxury brands are 'beelining' for new London locations. Central London’s retail appeal continues, with investment volumes up 71% quarter on quarter, totalling £424 million in Q2 2024. Oxford Street and Bond Street remain popular with retailers looking for physical stores as London’s investment volumes increase, says global real estate advisor CBRE. In the last 20 months there have been 30 new entrants on Oxford Street and Bond Street remains a primary focus with brands beelining for the middle of New Bond Street. Click on the link below to learn more. #news #luxury #london #oxfordstreet #bondstreet

Luxury chains, aiming to take control of their future, are purchasing storefronts. Luxury retailers in the U.S. are continuing to expand despite economic uncertainty, driven by limited retail space availability, according to JLL's report "Shaping Luxury’s Future: Trends in U.S. Luxury Real Estate." Upscale chains leased over 360,000 square feet from July 2023 to July 2024, and some are buying real estate to secure prime locations. The report highlights a surge in luxury retail sales, reaching over $75 billion in 2022 with a growth rate of 8.6% from 2020 to 2023. However, this growth is expected to slow to 1.9% annually through 2028, surpassing $82 billion by that time. Luxury retailers have embarked on a real estate buying spree, particularly in Manhattan. JLL reports that Kering, the French parent company of brands like Gucci and Balenciaga, purchased a property with 115,000 square feet of multilevel luxury retail space for nearly $1 billion. Additionally, the Italian Prada Group acquired two adjacent office buildings, including one housing its Fifth Avenue flagship store, for a total of $835 million. #retail #storefronts #cre

Taking advantage of lower rents at this time, high-end brands like Prada and LVMH are spending billions on prime retail properties to secure flagship locations, control renovations, and limit competition. This trend is concentrated in top retail districts with scarce availability. #luxury #retail https://hubs.li/Q02FTQsk0

When it comes to luxury retail, being a thriving business means so much more than just selling expensive products to a wealthy clientele. As Vogue Business wisely notes, it’s all about “connecting with communities through shared interests and offering unique experiences.” The creation of private shopping clubs, which allow clients to access everything from personal shopping and styling appointments to trunk shows and other special events, is revolutionizing the high-end retail industry. Instead of just browsing a store, customers are forming close relationships with experts in the field, all while experiencing something unique and carefully curated. Here, we explore how three of the luxury retail world’s most powerful brands, Saks Fifth Avenue, Harrod’s, and Brunello Cucinelli, are using private shopping clubs to actively engage with their customers in a way that builds lasting relationships. https://lnkd.in/eVNqCF4n

Some interesting points on the topic of price in this interview with Value Retail founder Scott Malkin. Scott’s organization curates The Bicester Collection of global luxury shopping destinations. Among the benefits it offers customers is the opportunity to buy authentic surplus from luxury brands, off-price.  But Scott talks to the opportunities that the physical experience of shopping opens up to full-price purchases too – particularly through the integration of tech.  This is a fascinating piece. Thanks Scott and Anita B. for the insights.  #LuxuryRetail #Pricing #Retail 

Luxury retail is thriving in a turbulent market. It's a surprising trend that emerged in 2020. While many sectors struggled during the pandemic, Yorkdale Mall in Toronto defied the odds. Here's what happened: 1) Upscale consumers continued to spend. 2) Yorkdale’s luxury segment remained strong. This prompted Oxford Properties Group to expand Yorkdale’s luxury offerings. They added 65,000 sq. ft of new retail space. Loro Piana and Versace are among the latest tenants. Here's where things get interesting: We’re seeing luxury expansions across North America. 1. Vancouver's Oakridge Park: QuadReal Property Group is adding 850,000 square feet of retail with a luxury "high street" design. 2. Montreal's Royalmount Mall: This new hub is bringing global brands to a market that previously shopped online or abroad. Some of my key takeaways: - Yorkdale saw an 8% sales jump in 2023, becoming Canada’s only shopping center surpassing $2 billion annually. - Retailers learned online fulfillment can’t replace the luxury shopping experience. - Even with economic uncertainty, luxury developers are betting on long-term demand. In short, it comes down to: - New demand for in-person luxury. - Expansion despite risks. - Huge sales increase. Luxury retailers are doubling down on the idea that: Shoppers want more than just products. They want experiences. While these investments show confidence in luxury, there are no guarantees. Let’s see where the wave goes. Thoughts? 

Luxury brands and conglomerates like Prada, Gucci, Chanel, Kering, and LVMH are snapping up prime retail properties in cities like New York and San Francisco like they're playing a high-stakes game of Monopoly. Instead of building hotels, they're planting their flagship stores to secure their spots on the board and keep competitors at bay. This strategy isn't just about flexing financial muscles; it's about gaining total control. By owning the properties, these brands can pick their neighbors, manage renovations without a landlord breathing down their necks, and limit competition in prime areas. It's the retail equivalent of ensuring your party guests are all on the VIP list. Why are they doing this? Long-term investment goals and the Scrooge McDuck-sized piles of cash they've been raking in from recent growth. Owning the real estate means they avoid the whims of landlords and skyrocketing rents, which in high-demand areas can be as volatile as a fashion week runway. In short, they're ensuring their flagship stores stay fabulous and exclusive. And let's face it, when you're a luxury brand, being able to say, "I own this place," has a certain je ne sais quoi. It's like a stylish insurance policy against the unpredictable world of retail. Here are some relevant hashtags: #LuxuryRetail #PrimeRealEstate #FlagshipStore #RetailStrategy #LuxuryBrands #Prada #Gucci #Chanel #Kering #LVMH #NewYorkRetail #SanFranciscoRetail #FashionInvestments #RetailControl #StoreOwnership #RetailTrends https://lnkd.in/gZVGWjPA

“Luxury global retail sales reached over $75 billion in 2023, according to a new report by JLL. The U.S. and Europe accounted for the largest shares of the market, with both comprising roughly 28% of overall luxury retail sales. Global luxury retail sales are expected to see a compounded annual growth rate of 1.9% from 2024 to 2028, surpassing $82 billion by the end of 2028.” “In total, luxury brands leased over 360,000 sq. ft. in the U.S. from July 2023 to July 2024. Almost half (48.5%) of new luxury stores opened in malls. Street retail accounted for 48.5% of openings. Hospitality and “other” accounted for the remaining space.” - Marianne Wilson

One of the best New York City retail success stories you’ll read about today. It’s not your shimmering Madison Ave luxury store. Nor is it your SoHo high-end designer boutique. And it’s not your Fifth Ave Department Store, dazzling with spectacular holiday lights. It’s Christmas Cottage, New York’s oldest Christmas shop, a holiday décor destination for the city’s yuletide tourists since 1985. A tiny 600 sqf shop nested on 7th Ave, just a few steps away from Central Park, Christmas Cottage survived the twists and turns of the economy and the many transformations of the city’s retail landscape by (drumroll) adapting. In order to be successful through these times of instability and ongoing disruptions, those that thrive are quick at reading and acting on signals of change. It’s a paradigm shift from being good at doing some particular thing, to being really good at learning how to do new things. Read through the Retail Brew interview linked below in the comments to get some refreshingly simple, yet so crucial, learnings that each and every retailer, big and small, should rigorously live by. Some examples: 1️⃣  Space optimization | Christmas Cottage optimizes its space by merchandising just a few of each ornament on its hook-adorned walls, while also showcasing them on color-coordinated trees. “I don’t need to show the same sweatshirt 10 times over. I don’t need to show Christmas eight times on a hook. If you know how to generate the traffic and move the traffic, you can achieve the same bottom line.” 2️⃣ Shopping experience | Their biggest department is ‘writeables’, customizable ornaments celebrating milestones like engagements or first Christmases. And their Tik Tok worthy turtledoves.   3️⃣ Differentiation | To stand out from the slew of gift shops slinging “I Heart NY” T-shirts that it must compete with for any non-holiday offerings, the shop works to stock items not found in those stores, often self-manufacturing items. “We try to stand out a little bit from the rest of the tourist-driven retailers,” he said. “It’s a game you play, and you have to navigate and be current and try to change constantly. Not an easy task, but we try.” So simple, yet so rare to find in many of today's greatest protagonists of the retail scene. #retail #shoppingexperience #stores #merchandising #sales #holidays #linkedinpostsbymariopace