• Cushman & Wakefield reported 96 new luxury store openings on Europe’s leading shopping streets in 2025, up 13% compared with 2024
• Brands owned by LVMH, Kering and Richemont accounted for almost one third of openings, with the remaining 70% coming from 57 other brands and groups
• Vacancy rates close to zero on Europe’s prime luxury streets
European luxury retail continued to show strong momentum in 2025. According to Cushman & Wakefield’s latest European Luxury Retail report, the year was marked by a significant increase in store openings, a broader base of active brands and growing pressure on the already scarce supply available on prime shopping streets.
In 2025, 96 new luxury stores opened across 20 benchmark streets, spread over 16 cities in 12 European countries, up from 85 in 2024. This growth reflects renewed confidence in physical retail, with brands prioritising flagship stores, immersive experiences and long-term strategic locations, in a context where physical presence remains central to brand positioning and differentiation in the luxury sector.
The market continues to reflect both consolidation at the top and growing diversification. While brands owned by LVMH, Kering and Richemont accounted for almost one third of all openings, 70% of new stores were launched by 57 other brands and groups, highlighting the depth, resilience and competitive intensity of European luxury retail.
This European market dynamism is taking place against a backdrop of severe supply constraints, with several luxury streets recording vacancy levels close to zero. This limitation has intensified competition for the best spaces, driven more creative approaches to space utilisation—such as occupying upper floors—and supported an upward trajectory in prime rents, which in 2025 stood 7% above 2018 levels*, reaching historic highs in several markets.
In Lisbon, this trend is particularly evident on Avenida da Liberdade, the city’s main luxury axis. Maria José Almeida, Associate and Head of Luxury Retail at Cushman & Wakefield, comments: “Lisbon clearly follows the European trend, but with a market that is even more constrained by its smaller scale and limited supply. In 2025, three new openings were recorded on Avenida da Liberdade, in a context of virtually zero availability.”
According to the expert, the scarcity of opportunities is expected to continue to pressure the balance between supply and demand: “Demand is expected to remain above supply, and Avenida da Liberdade itself is physically constrained. In this context, prime rents are expected to continue rising, reinforcing the avenue’s positioning as Portugal’s leading luxury destination.”
The report’s findings confirm that the luxury retail sector remains structurally sound, supported by diversified demand, historically low availability levels and a growing emphasis on consumer experience. With physical stores continuing to play a strategic role in brands’ growth strategies, Europe’s leading luxury streets—including those in Lisbon—are expected to remain central to the luxury retail landscape in the years ahead.
