The European luxury retail market has been thriving, with 83 new luxury stores opening in 2024 across 20 key shopping streets in 16 cities and 12 countries, according to Cushman & Wakefield’s latest insights.
While slightly fewer than the 107 openings in 2023, demand for prime retail locations remains high, keeping vacancy rates low and rents on the rise. As prime retail space becomes scarcer, brands are prioritising flagship stores in strategic markets.
Pařížská Street in Prague, the leading luxury shopping destination in Central and Eastern Europe, continues to attract top-tier brands. In 2024, five new luxury stores opened, including Patrizia Pepe, The Brands, Le Labo, The Ingredients, and Tudor’s first boutique in the Czech Republic. More openings are expected in 2025, with Cartier planning an expansion.
Beyond Pařížská, Prague’s luxury retail market is growing, with Balmain Hair Couture opening on Dlouhá Street. Two major developments—Fairmont Golden Prague and Pařížská 25—will add over 2,200 sqm of new luxury retail space by 2025, further reinforcing the city’s role as an emerging luxury hub.
Luxury brands continue expanding across Europe, but securing prime retail space is increasingly challenging. Of the 20 key shopping streets analysed, 17 have a vacancy rate below 5%, and six have no available space at all. This scarcity has pushed prime high-street rents up by 3.6% in 2024, making them 3% higher than in 2018. With limited availability, brands are rethinking store strategies, investing in fewer but larger and more immersive retail experiences.
