Thu Sep 12 10:21:00 UTC 2024: ## Luxury Retail Remains Strong Despite Economic Uncertainty

**New York, NY** – A new report from JLL reveals that luxury retail has demonstrated remarkable resilience in the face of economic headwinds, including rising inflation and consumer caution. Despite these challenges, the sector has seen continued growth in both revenue and store count.

**Sales and Store Growth on the Rise:**

Luxury retail sales in the U.S. exceeded $75 billion in 2023, representing an 8.6% annual growth rate since 2020. The sector is projected to reach $82 billion by 2028, with an anticipated annual growth rate of 1.9%. Major luxury conglomerates, like LVMH, Richemont, Prada, and Zegna, have witnessed significant revenue increases and expanded their physical presence with new store openings.

**Malls Remain Attractive:**

Despite a decline in overall mall traffic, luxury brands continue to invest in prime mall locations and upscale shopping corridors. Approximately half of the new luxury stores opened between July 2023 and July 2024 were located in malls. New York’s Madison Avenue and Los Angeles’ Beverly Hills remain the top destinations for luxury retail, accounting for nearly 37% of new store openings during the same period.

**Importance of In-Store Experiences:**

While e-commerce continues to play a role in luxury sales, its share of the market remains lower than the pandemic peak, highlighting the enduring value of in-store experiences for high-end brands. The report emphasizes the need for malls to strategically curate their tenant mix, offering high-quality spaces that attract luxury brands.

**JLL’s findings underscore the continued strength of the luxury retail market in the U.S. and suggest that these brands are well-positioned for continued success in the years to come.**

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