Many commentators heralded the recession as the end of consumers’ love of luxury goods. However, while shoppers are now much more considered with their purchases, they are still more than happy to add to their wardrobes and make-up bags with luxury brands. We have all become smarter shoppers and being savvy about how and where you spend your money has even permeated into the luxury market.
It’s not only consumers that have adopted a more considered outlook to shopping. Luxury retailers are also carefully scrutinising their store locations. It is a major investment to open a flagship store and the major cities in the UK are now competing on a global level to attract brands. There has to be something exceptional about the destination and a critical mass of luxury brands clustered together is becoming ever more important. While London still remains a popular luxury retail destination with tourists, there is good news for regional growth as retailers are not overlooking the key catchments around big UK cities, where there is still a growing desire from consumers to update outfits regularly with luxury accessories.
Hammerson in partnership with Drapers, has conducted research on the luxury sector, it provides an interesting insight from consumers on how they shop for luxury.
What is clear from the research is that the UK still leads the world when it comes to department stores as they top the list of locations where luxury goods are purchased. We have seen major investment in the quality of the stores and there is a real desire to attract the best premium brands, which in turn ensures the retail experience remains fresh and exciting for consumers.
The insight in this report highlights the growing opportunity for luxury destinations and brands that can capture consumers’ loyalty through exceptional in-store and online experience – one which we’re keen to make the most of.