Luxury Retail


Annette Healy, Executive Vice President, and Melina Cordero, Global Head of Retail Research, discuss the latest trends in luxury retail.

Luxury Retail

Retail Innovation
Retail Innovation
After sustained growth of the US economy, the luxury retail market is experiencing a boon—however, it’s not immune to the disruption the rest of the retail industry is experiencing. While the industry has been slower to embrace e-commerce, it has been at the forefront of consumer experience, offering innovative amenities to earn customer loyalty and drive traffic to stores.   

Consolidation Drives Efficiency  
The luxury retail market continues to consolidate, with a few key players owning a large number of high-end brands. While the brands stylistically operate independently, the acquisitions have been a growth driver as ownership is able to create a more efficient platform.  

In-Store Experience  
While luxury brands have been shy of e-commerce, they’ve innovated extensively with their in-store experience. With a keen focus on intuiting what their consumers want—from exclusive events to in-store food and beverage offerings—the luxury sector has been at the forefront of experiential retail, maximizing dwell times and maintaining physical stores as the critical component of omnichannel operations.   
 
Focus on the Flagship  
While brands continue to perfect their footprints, there has been a return to the flagship store model. Many luxury brands are rolling out new signature stores or renovating existing ones, which is driving traffic and social media mentions.  

Future of Luxury  
Hospitality and convenience will play key roles as luxury brands build out their omnichannel platforms. Already experts in consumer experience, expect luxury retailers to bring new levels of service to shopping across channels.   

 

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