Luxury retail is still investing in stores across Europe, despite a tougher market backdrop. New openings on key luxury streets increased in 2025, showing that major brands still see physical retail as an important part of growth, visibility and competitive positioning.
This reflects a more deliberate use of stores as brand assets. For luxury groups, physical space helps control presentation, improve service and create a setting that supports higher-value purchases.
The rising number of openings also signals confidence in the role of stores within a broader retail strategy. Even with slower momentum in the sector, brands are still committing capital to prime locations.
In physical retail, AI can help retailers improve the customer journey, reduce friction and make stores work more efficiently. It can support product discovery, service and decision-making, but it does not remove the value of being in-store.
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