Uncover insights from the H1 2025 Luxury Retail Dynamics Report, tracking a +10.5% rise in activations and a shift toward experiential retail. Powered by LY Retail, the report spotlights APAC’s +55% growth and leading brands like Dior and Coach shaping the next era of luxury retail.
SUMMARY
Luxury retail grew +10.5% in H1 2025, marking a clear pivot from expansion to experiential optimization. Brands prioritized client-centric upgrades over new openings, transforming boutiques into refined spaces with VIC lounges, private salons, and wellness facilities. The APAC region surged by +55%, led by strong growth across Southeast Asia and South Korea (+86% store openings), solidifying its status as the most dynamic driver of luxury retail innovation.
KEY TAKEAWAYS
- Experiential Optimization: Total retail activations grew +10.5% YoY, driven by a strategic shift from expansion to upgrading and reimagining boutiques. Store reopenings rose from 15% to 21% of total activity, signaling brands’ focus on optimizing existing spaces over adding new ones.
- VIC-Centric Strategy: Luxury houses deepened their engagement with Very Important Clients by integrating private salons, bars, and hospitality spaces into flagships—exemplified by Cartier’s “Residence” in Tokyo and Chanel’s salons in Las Vegas. VICs are projected to drive 65–80% of market growth by 2027.
- APAC Momentum: The Asia-Pacific region led global growth (+55%), driven by booming retail and experiential formats in Southeast Asia. South Korea stood out with +86% more store openings, while China maintained leadership with 34% of all activations.
- Wellness & Resort Expansion: Wellness-driven retail became a key growth vector as brands launched spas, studios, and lifestyle spaces in stores and seasonal destinations. Collaborations in Ibiza, The Hamptons, and Forte Dei Marmi turned resort retail into a permanent strategic channel.
- Activation Leaders: Dior dominated pop-up activations (+161% in APAC) through immersive, hospitality-led concepts, while Coach led permanent store activations, expanding with experiential flagships targeting Gen Z audiences.