C'est magnifique

With its unique blend of luxury, heritage, and innovation, Paris has always been a hotspot for retailers seeking global recognition.

The city's iconic shopping streets, like the golden triangle in the Avenue des Champs-Élysées and Rue Saint-Honoré, draw in travellers and provide retailers with high visibility and foot traffic whilst its rich cultural heritage and reputation for craftsmanship make it an ideal location for luxury brands and artisanal boutiques looking to showcase their products in a prestigious setting.

It's no wonder that Paris is experiencing a boom, evident in its bustling streets and thriving retail landscape. The city boasts high shop occupancy rates, with prime retail spaces commanding average rents of €15,500 per square meter on Champs-Elysees and €13,500 on Rue St. Honore. Moreover, footfall in these prime areas is soaring, with Champs-Elysees witnessing an average of one million monthly visitors in 2023 alone, marking a 15% increase compared to the previous year.

In 2023, the city witnessed the debut of several noteworthy fashion establishments, such as the world's largest Yves Saint Laurent flagship store, the upgraded 1,000 square meter flagship store of Massimo Dutti, and the visually striking Comme Des Garcon store on Rue Saint-Honore. Moreover, these openings extended beyond the confines of central Paris. In April 2023, a new McArthurGlen designer outlet emerged in Paris-Giverby, featuring the country's inaugural Victoria's Secret outlet store.

Anticipation is high for upcoming openings, including the introduction of the Swiss ALAÏA brand store, Balenciaga's forthcoming establishment on Avenue Montaigne, and a sprawling 25,000 square meter Louis Vuitton flagship store and hotel at 103-111 Champs Elysses.

Anticipating continued success, we highlight three reasons to remain optimistic about the Paris and French retail scheme in the coming months:

Olympics 2024
As host of the Summer Olympics and Paralympic Games, Paris is poised to seize the global spotlight, presenting an enticing opportunity for brands to vie for attention throughout the event. Previous Olympics have served as a fertile ground for unique brand activations and popups. Some memorable examples include Omega’s “Omega House” concept in the 2012 and 2016 Olympics that hosted several celebrity and “members only“ events; and the BMW Pavilion concept at the 2012 London Olympics. Given Paris's status as the epicentre of fashion and considering the limited scope for brand activations during the Tokyo 2020 Games due to pandemic protocols, the stage is set for a resurgence of Olympic brand activations in 2024. Expect Paris to dazzle with captivating brand experiences that will leave a lasting impression on spectators and participants alike.

Tax-free shopping
Over the past few years, France has also consolidated its status as the top tax-free shopping destination in Europe for tourists, attracting 46% of total tax-free spend in Europe in 2023. This prominence has been notably bolstered by the UK's decision to end duty-free shopping in 2021. In stark contrast, just a year prior, France accounted for only 30% of European tax free expenditure in 2020. With the global tax-free market expected to grow at a CAGR of 7.5%  to US$ 70.75 billion by 2030, France’s position as the regional leader makes it well poised to capitalise on this. Its closest competitor in Europe is Italy which accounted for only 19% of tax-free shopping in 2023.

Return of Chinese tourists
Chinese traffic began recovering after the government’s re-opening of borders in early 2023. Despite initial constraints in capacity and some hesitancy among travellers’, the trajectory is now shifting significantly. In 2024 Chinese outbound tourist volumes are expected to double relative to 2023 levels and tourist volumes to France are expected to recover to and exceed pre pandemic levels. Chinese tourists are renowned for their substantial expenditures, with an average transaction values of €1,637 recorded in 2023. This resurgence in Chinese tourism bodes well for retailers in Paris, who have already seen promising signs with retail sales turnover in 2023 reaching 97% of 2019 levels.

With such promising performance prospects, Paris emerges as an essential destination for any aspiring retailer. However, in the face of discerning customers and fierce competition, brands must strive to present their best offerings to ensure customer satisfaction. To secure success, brands must also recognise the uniqueness of local areas and engage in meticulous location planning to ensure that their stores are strategically placed in locales that align with their brand values and optimise exposure to their target audience demographics.

For brands seeking to craft a tailored location planning strategy, Pragma offers a comprehensive suite of property planning services. With our expertise, businesses can deliver targeted and relevant offerings across different geographies, ensuring optimal performance and success. 

Soham Nayak