Five top U.S. markets for luxury retailers
New York – New York, Chicago, Las Vegas, Miami and San Francisco rank at the top of the list, reporting the highest luxury sales in per square foot, according to JLL’s “The New World of Retail Report.” But while core metro areas ranked at the top of the list of preferred locations, several emerging retail markets like Dallas, Houston and Orlando possess the attributes for longer term success driven by ongoing population and income growth.
According to JLL’s report, luxury retailers continue to perform extremely well, having experienced double-digit increases in sales revenue in the last few years as their clientele was minimally affected by the economic upheaval. The affluent customer segment, which represents the top 20% of U.S. consumers who earn more than $100,000 annually, only accounts for one-fifth of the population, but 40 percent of all consumer spending.
“Luxury goods embody elegance and acute attention to detail, and the storefronts and locations that encapsulate these treasures must be as unique as the goods themselves,” said Michael Hirschfeld, senior VP of JLL Retail. “The retail elite typically flock to core cities where they tailor service and product mix to shoppers, but many of these metros are saturated and that’s pushing expansion in secondary cities.”
The study, debuting at ICSC’s New York Conference. tracks the expansion of 350 retailers across the United States and assesses the vitality and attractiveness of retail markets, examining why the classic real estate principle of location, location, location remains essential to the success of brands.
While the United States isn’t a developing country with fast-track growth, its stability provides a safe haven for brands that can’t be matched. The United States continues to be the market of choice for luxury expansion because of the strong population growth, the variety and size of its markets and the influence of the millennial generation creating demand for innovation in retail concepts.
Luxury retailers will continue to eye opportunities in the historically strong and most well-known markets, like Manhattan, but also follow the robust population growth and housing market, according to JLL.
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