Luxury Brands Close 84 Stores, Shift to Fewer but Bigger Flagship Shops
Creatrip Team
21 days ago
Major luxury groups like Kering closed dozens of underperforming stores (84 in H1 for Kering) and are moving from a 'many stores' strategy to 'select and focus.' After rapid expansion—especially across China—slower luxury demand made multiple outlets per city costly. Brands are cutting low-performing locations (about 5% of Kering's directly operated shops) while investing in larger, higher-quality flagship stores in key cities like Beijing, Seoul and Tokyo. The shift aims to raise productivity per store, improve customer experience, and use boutiques to showcase brand worldviews and serve top clients. Some groups (e.g., LVMH, Richemont, Prada) plan targeted flagship openings or renewals rather than broad expansion.
