Luxury retail sales in Paris – a dramatic slow down
Strolling down Pariss famous top luxury streets Avenue Montaigne and Faubourg St Honore, during rush hours highlights the painful situation of the majority of luxury brands, with empty shops and very few actual buyers. One would notice very few Russians and Middle Eastern customers. It is rather Turkish, German or Italian customers. Except for Hermes and Louis Vuitton, major stores of Gucci, Dolce Gabbana, Valentino or Yves Saint Laurent are practically empty. So are the notorious Rue Cambon stores of Chanel. People buy less and spend less. Brands like Givenchy, Sonia Rykiel or Ferre seem to be on the verge of bankruptcy. We believe, same as in Los Angeles this month, Paris will see some boutiques closing. Relocation is not really an option especially for brands with a very elaborate and costly shop concept.