LVMH, Kering, and Zegna lead the list of growing giants expanding their retail sector.

In the face of economic uncertainty, such as consumer caution due to inflation, luxury sales have remained strong in the US market, according to a new report from JLL.

By 2023, luxury retail sales will reach more than $75 billion, with an annual growth rate of 8.6% from 2020 to 2023, the report found. In the United States, luxury sales are expected to have an annual growth rate of 1.9% from 2024 to 2028, bringing it to $82 billion by the end of 2028.

Major luxury malls to see revenue growth and retail space increase by 2023, JLL reports.

French conglomerate LVMH — whose brands include Louis Vuitton, Dior, Fendi, Tiffany & Co, Loewe, and Bulgari — saw revenue rise 10% in 2023 to about $95.1 million, compared to $85.5 million last year. In addition, the group went from 5,664 stores opened in 2022 to 6,097 stores in 2023, which is 7%.

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Other groups, such as Richemont (Cartier, Van Cleef), Prada, and Zegna, have seen similar increases in revenue and store growth.

Even with the decline in the number of shoppers in department stores, luxury brands continue to see growth in shopping malls and high street stores. About half of the luxury stores that opened from July 2023 to July of this year were opened in malls, the report said.

New York’s Madison Avenue and Los Angeles’ Beverly Hills continue to be the most popular locations for luxury stores, with the two markets together accounting for nearly 36.9% of new luxury store openings from July 2023 to July 2024.

Although the share of e-commerce in total retail sales increased to 16% in the second quarter of this year, it remains lower than the peak of 16.4% in 2020. This shows the importance of the in-store experience of luxury and scarcity products. of desirable retail space, products have begun to expand among existing stores.

Malls that sensibly develop their tenant mix to offer high-end stores continue to attract luxury companies seeking high-quality space, JLL reports, “with malls that include a wide variety of premium brands in their inventory.”