Promenaden’s Post

Milan : On Via Montenapoleone, the average receipt in the luxury street rises to 2,379 euros (but rents are also increasing). For a year of rent, you also spend 34 million euros. Even rents have reached record figures. According to data from the "Main Streets Across the World" report, curated by the American real estate company Cushman & Wakefield, the average cost is €18,000 per square meter. This means that to rent a space of 1,800 square meters – like the one Gucci reopened a few months ago at number 7 - you need around 34 million euros per year. The amount of money involved makes it practically impossible for emerging brands with a small turnover to access these spaces. The same goes for independent retailers without a major group backing them. Confirmation comes from the recent announcement of the imminent closure of "Vetrerie di Empoli," a historic glassware store located at number 22.

Bal Harbour Shops "is bringing the pop-up to markets where there are prospective customers, high-net-worth individuals who have no easy access to luxury." Really interesting insights from ICSC on the world of #popup shops - this time for #luxury goods. Could pop up shops to capitalize on gaps be the answer for retailers? 🤔 #shop #retailers #CRE #ICSC

Cord belts are currently a key trend, appearing in many high street and luxury collections. What are your thoughts on this trend? Are you considering trying the cord belt look? 📍Coventry 📧 fabric@newwaveint.co.uk 🌐www.newwavefabrics.com _ #newwavefabrics #fabricsupplier #coventry #CordBeltTrend #FashionOpinions #BeltTrend

Simply last year sales / # of stores. This ratio would need many adjustments to make it better comparable but it’s interesting as first insight. Source: Danny Younis #lvmh #dior #louisvuitton #chanel #cartier #gucci #kering #Richmond #retail #sales #analysis #turnover #luxury

Steen & Strøm, the world's oldest continuously running department store, celebrated its strongest ever quarter, with record sales and footfall. Promenaden Management, an asset management platform specialising in luxury offices and retail wholly owned by MARK, has invested significantly in improving the store's design, layout and offering, which has made Steen & Strøm a destination for both local and overseas consumers. Commenting on the Q1 trading figures, David Wilkinson, Executive Director at Promenaden Management, said: “An influx of wealthy tourists from across the world, combined with Norway’s increasing ease with conspicuous consumption, is driving a local luxury boom. Steen & Strøm, still the world’s oldest running department store, has been a prime beneficiary, as evident in our latest trading figures.  “However, this has not simply been a case of rising tides raising all boats – we have invested significantly in improving our offering and continue to do so, with new tech and fashion-based offerings due to open later this year.”  Read more in Retail & Leisure International:

Prada is poised to unveil an exquisite 8,000 square foot boutique within the opulent K11 Musea, the leading waterfront shopping destination developed by New World Development. The construction of this two-level retail haven is set to commence shortly, with an anticipated grand opening in early 2025. This marks a significant milestone for Prada, as it represents the brand's first substantial new store in Hong Kong in several years. The luxury fashion house previously closed its flagship location in Causeway Bay in 2020, concluding one of the city's most exorbitant retail leases, which commanded a staggering monthly rent of HK$9 million (approximately US$1.2 million). Once boasting nine outlets in the vibrant city, Prada now operates six. In a notable trend, global luxury brands are increasingly reestablishing their presence in Hong Kong's prime business districts, drawn by property prices that have significantly decreased from pre-pandemic levels. In Tsim Sha Tsui, the area where K11 Musea is situated, the average rent for retail spaces along major shopping thoroughfares remains 45% lower than it was in 2019. The affluent residents of Hong Kong have provided a measure of stability for international brands amidst a downturn in sales in their primary market of Mainland China. Additionally, this shopping mecca continues to be a favored destination for mainland tourists, further enhancing its allure for luxury retailers.

Coast To Coast

Prada Group's Bold Return to Hong Kong: A Luxury Market Resurgence? Breaking News: Prada is set to open a massive 8,000-square-foot store in Hong Kong's K11 Musea, just four years after closing its flagship there. This move signals a potential shift in the luxury retail landscape. Let's break it down: ▶ Prada's new store will be its largest in Hong Kong since 2020. ▶ Luxury brands are creeping back into Hong Kong's core districts. ▶ Rents in prime locations are still 45% below 2019 levels. ▶ High-end malls are doubling down on luxury to attract wealthy shoppers. ▶ Hong Kong remains a key market, balancing mainland China's sales slump. The Bigger Picture: ▶ This move suggests renewed confidence in Hong Kong's luxury market. ▶ It highlights the importance of physical retail in the luxury sector. ▶ The focus on wealthy local residents and returning mainland tourists is clear. Questions for my Luxpreneurs: Is this the start of a broader luxury retail resurgence in Hong Kong? And more importantly, what does this mean for luxury brands' overall Asia strategy? Prada's bold move might just be the catalyst the Hong Kong luxury market needs. #TheLuxpreneur #Luxpreneur #LuxuryNews #LinkedinNews #LuxuryRetail #HongKong #PradaMove #RetailStrategy What's your take on this development? Is Prada ahead of the curve or taking a big risk? https://lnkd.in/e5vMrg29

Seven prestigious luxury brands are set to significantly expand their presence at K11 Musea in Tsim Sha Tsui, aiming to increase their total retail space to over 30,000 square feet within the next four years. This initiative comes as New World Development, the high-end real estate division, anticipates a resurgence in the city's luxury retail market. Audemars Piguet, Balenciaga, Brunello Cucinelli, Loewe, Saint Laurent, and Van Cleef & Arpels are planning renovations for their existing stores at K11 Musea, while Prada is preparing to launch its first outlet at Victoria Dockside. The expansion of these leading luxury brands at K11 Musea is primarily attributed to the impressive performance and exceptional sales productivity of their current locations. In the six-month period ending December 2023, K11 Musea experienced a remarkable 41% increase in sales compared to the previous year, largely fueled by luxury spending, beauty products, and cultural events, as reported by New World.

If u have promenaded the Avenue des Champs-Élysées recently, u will realise the grande madame is past her prime. Despite being “the most beautiful avenue in the world”, and attracting 300,000 people daily to its theatres, museums, monuments, and designer shops, the 1.17mile stretch – traced by Louis XIV’s chief gardener in the 17th century – has become one of Paris’s most polluted areas, swamped by 8 traffic lanes (with a smoke-belching 3,000 vehicles per hour). The thoroughfare is now notorious for banditry and protests: with folks holding flag and megaphones to complain about whatever they want to moan about that week. The cops then move in and break it all up. (One also can’t miss the huge “Tax the rich” banner on the giant Louis Vuitton box targeted by activists). It’s a place most Parisians avoid. Enter the ‘Store Wars’!   Barely a year after buying a huge building, Brookfield recvd an offer that was so tempting it dumped its plans to redevelop the block. The near-€1bn sale in Dec to LVMH netted at least €200m, a new record for Paris’s most famous avenue. The site will be a Dior store.   The location is turning the thoroughfare desirable again with high-end brands now occupying 25% of the avenue, up from 15% half a decade ago.   With the wider retail world still grappling with online shopping, the biggest luxury players are beefing up their physical presence, defying a wider real estate downturn. Kering and LVMH have spent >€5bn on real estate since last year. Gucci-owner Kering’s €1.3bn purchase in April of a building on Milan’s Via Monte Napoleone was the biggest property deal in Europe in 2yrs. The past 2 decades have been remarkable for the luxury sector thanks to crazy rich Asians. While American labels have struggled, the biggest gainers have been Europe that account for 2/3rd of sales and 9 of the world’s 10 most valuable luxury brands. Tom Ford gushed that Europeans, unlike his compatriots, “appreciate style”. Even America’s pricier brands like Ralph Lauren focus on what insiders derisively call “accessible luxury”. Three of the “big four” fashion weeks happen in European cities. NY has bravely tried to catch up with design schools to rival those of Milan or Paris. Yet it has lost top designers to Europe the same way Europe has lost techies to Silicon Valley. The continent is dotted with artisanal workshops that have catered to the exacting standards of the luxury sector for decades. The luxury industry remains a rare bright spot for Europe at a time when it seems fading into economic and tech obscurity. A couple of questions remain: * If u were a luxury brand, why not buy a whole block somewhere cheaper in Paris and cultivate the neighbourhood into the luxury lifestyle image you are trying to portray? * Transforming the Champs-Élysées is taking time with the side streets still hosting cheap brasseries, kebab shops and money changers. A McDonald’s restaurant there is one of its most profitable worldwide. Will it ever move?🤔😀