European Luxury Retail Report 2026 EMEA
Bucharest, March 2026: Europe’s luxury retail market is going through a period of recalibration, marked by moderate sales growth but continued strong interest from brands in expanding their physical store networks. In this context, Bucharest is increasingly emerging as a key luxury retail destination in Central and Eastern Europe, supported by rising purchasing power, growing tourism dynamics – with over one million foreign tourists spending at least one night in the Romanian capital in 2025 – and the consolidation of prime high street and premium retail locations, according to an analysis by the Cushman & Wakefield Echinox real estate consultancy company.
At European level, luxury retail sales increased by approximately 0.5% in 2025, amid more cautious consumer demand, with shoppers becoming increasingly attentive to value for money and in‑store experience.
Despite this moderation, luxury retailers continued to invest in physical stores across Europe, with 96 new stores opened along 20 of the most important luxury shopping streets in 16 European cities – a higher level than in 2024.
Within a European landscape dominated by established markets such as Paris, Milan and London, Bucharest remains the main gateway for international brands entering the Romanian market. The capital accounts for approximately 25% of total national retail spending, supported by a population of around 1.7 million residents in the city and over 2.3 million in the metropolitan area, as well as by net salaries more than 30% above the national average.
Luxury retail in Bucharest is driven by a well‑defined network of premium destinations, both within dominant shopping centres and along established high streets. Over the past six years, luxury brands have reported consistent sales growth, with the market reaching annual revenues of approximately €150 million – a figure that could increase significantly following the recent store openings on Calea Victoriei at the end of last year.
Calea Victoriei has established itself as Romania’s prime luxury high street, accommodating a strong mix of prestigious international brands, five‑star hotels and premium food & beverage concepts, which has driven higher international tourist traffic and strengthened local demand.
Luxury brands present on Calea Victoriei include Valentino, Dior, Saint Laurent, Gucci, Dolce & Gabbana, Celine and Loewe, located within TOFF Galleries (Stirbei Palace) – the largest luxury high street gallery in Romania, opened last year – as well as Louis Vuitton at InterContinental Athénée Palace, Boss, Casa Frumoasa (multibrand), Vendôme at Radisson Blu, Secretist (multibrand), Max Mara, Mengotti (multibrand), GALT and Entrance (multibrand).
Prime rents for luxury retail spaces on Calea Victoriei and adjacent streets can exceed €100/sq m/month for units of 100-200 sq m in the best locations.
Calea Dorobanti has become a key destination for luxury brands, supported by the surrounding high-end residential neighborhoods and affluent local community. In addition, its proximity to the CBD and the Floreasca-Barbu Vacarescu business hubs (two of the most desirable office areas in the city) strengthens its commercial relevance.
The presence of numerous diplomatic missions in the vicinity further enhances the area’s prestige and international appeal, attracting expatriates and business professionals.
Among the most important retailers in the area are Canali Boutique, Madison, Brunello Cucinelli, Nespresso, Distinto Boutique or Simona’s, thus reinforcing Calea Dorobanti’s position one of the most important high-end luxury retail destinations in Bucharest.
The development of luxury retail in Bucharest is also supported by the strong performance of dominant shopping centres and retail galleries such as Baneasa Shopping City and The Grand Avenue within the JW Marriott Bucharest Grand Hotel, which hosts a diversified mix of premium and luxury brands.
At European level, luxury brands are increasingly focusing on flagship stores, in-store experiences and hybrid concepts that combine retail with hospitality, gastronomy or art. This strategy is also evident locally, where location, brand image and space quality are becoming key decision‑making factors for expansion.
In the context of limited availability of premium retail space and sustained interest from international brands, upward pressure on ultra‑prime rents is expected to continue, in line with trends seen across Europe’s main luxury streets, half of which recorded record rental levels in 2025.
Raluca Zlate, Senior Consultant Retail Agency Cushman & Wakefield Echinox: “In a European context shaped by more moderate growth in luxury retail sales, Bucharest is beginning to stand out as an emerging market, supported by solid demand from high‑income consumers and increasing interest from international brands for premium locations. The limited supply of ultra‑prime retail space, particularly on Calea Victoriei and in adjacent areas, creates the conditions for continued rental pressure and aligns Romania’s capital with the trends observed on Europe’s leading luxury streets.”
In 2025, Paris, London and Milan were the European cities that attracted the highest number of luxury store openings, showing a strong rebound in activity amid renewed brand interest in ultra‑prime locations. Paris recorded 22 new store openings following a more subdued 2024, reaffirming its status as Europe’s leading luxury retail destination, while London and Milan registered 15 and 11 openings respectively, despite extremely limited availability on streets such as Bond Street, Sloane Street and Via Montenapoleone.
LVMH was the most active player in 2025, with 17 new stores, followed by Kering, which accelerated its expansion to seven openings, while Richemont slowed its pace to five new stores after two consecutive years of intense activity.
In Central and Eastern Europe, Prague remains one of the most mature and stable luxury retail markets, supported by rising foreign tourist numbers and strong local purchasing power. This has led to the opening of six new stores on Pařížská Street, the city’s prime luxury artery, within the recently renovated Fairmont Golden Prague Hotel.
Over the medium term, Europe’s luxury retail market is expected to enter a phase of more balanced growth following the post‑pandemic expansion.
Sales are forecast to increase by an average of around 3% per year between 2026 and 2030, driven by stabilizing demand and a stronger focus on in‑store experiences and flagship formats.
At the same time, rents for luxury retail spaces on Europe’s prime streets are projected to record annual growth of between 0.5% and 4% over the same period, supported by limited supply and intense competition for ultra‑prime locations.
These trends are also creating favorable conditions for emerging markets such as Bucharest, where pressure on the best locations is expected to intensify, in line with developments observed across Europe’s leading luxury destinations.
