{"id":1004790971,"date":"2026-03-10T01:51:20","date_gmt":"2026-03-10T09:51:20","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004790971"},"modified":"2026-03-16T07:54:55","modified_gmt":"2026-03-16T15:54:55","slug":"luxury-retail-in-2026-where-opportunity-lies","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/luxury-retail-in-2026-where-opportunity-lies\/","title":{"rendered":"Luxury Retail in 2026: Where Opportunity Lies"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a1b1283ca819&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-large is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004790972\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/luxury-retail-in-2026-where-opportunity-lies\/anokuteebere_colinshaughnessy_shankeerika\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg\" data-orig-size=\"1200,900\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"AnokuteEbere_ColinShaughnessy_ShankeErika\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg?w=1024\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" height=\"768\" width=\"1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg?w=1024\" alt=\"Headshots of Ebere Anokute, Colin Shaughnessy and Erika Schanke, experts in luxury retail\" class=\"wp-image-1004790972\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg?resize=768,576 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/03\/AnokuteEbere_ColinShaughnessy_ShankeErika.jpg?resize=1024,768 1024w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">L to R: Ebere Anokute, Head of Americas Retail Research, CBRE; Colin Shaughnessy, Executive Vice President of Leasing, Unibail-Rodamco-Westfield U.S.;&nbsp;Erika Schanke, Executive Vice President of Global Retail Business Development, JLL. <em>Images courtesy of the respective companies<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>Luxury retail entered 2026 with a sense of cautious optimism. While luxury spending isn\u2019t as robust as 2023, the market contraction of the past two years has slowed, and landlords and retailers are seeing a period of evolution influenced by a K-shaped consumer landscape.<\/p>\n\n\n\n<p>While affluent buyers continue to drive demand, tighter budgets for middle-income consumers mean that luxury retailers will need to compete for a narrower and more selective share of the market.<\/p>\n\n\n\n<p>Success for brands and landlords alike will hinge on balancing exclusivity with accessibility, <a href=\"https:\/\/www.commercialsearch.com\/news\/icsc-special-report-how-retail-is-leveraging-ai\/\">leveraging data and AI<\/a> for operational insight and offering experiences that resonate with both high-end and aspirational shoppers. It will also require a rebalancing of the landlord-tenant relationship.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-k-shaped-consumer-landscape\">A K-shaped consumer landscape<\/h2>\n\n\n\n<p>According to data from <a href=\"https:\/\/www.jll.com\/en-us\/insights\/market-dynamics\/us-retail\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">JLL&#8217;s fourth-quarter retail dynamics<\/a> report, the U.S. luxury goods market is expected to reach $196.2 billion by 2033, with a compound annual growth rate of 6.1 percent.<\/p>\n\n\n\n<p>However, the source of that growth is a smaller, more affluent customer base. Over the past 20 years, households in the top 20 percent income bracket have gained wealth share due to asset appreciation while buyers in the broad 20 to 80 percent, middle-income bracket have seen their share decline due to inflationary pressures and a tighter job market.<\/p>\n\n\n\n<p>With wealth more concentrated at the top, consumers in the highest brackets have disproportionate purchasing power, particularly for luxury goods, experiences and premium services. At the same time, middle-income aspirational luxury buyers are likely to be more selective in how and where they spend.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/retail-traffic-sales-rise-despite-turbulent-year\/\">Retail Traffic, Sales Rise Despite Turbulent Year<\/a> <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>Rents are moving up in newly affluent areas such as Charlotte, N.C., and Nashville, Tenn., where demand is running into space shortages. Meanwhile, cities with more established luxury retail markets, such as Los Angeles, are seeing lower or negative overall growth.<\/p>\n\n\n\n<p>\u201cWith few net new luxury store openings expected nationally due to the limited number of deals signed in the last 12 to 18 months, the brands that are expanding are choosing only the strongest locations,\u201d said Colin Shaughnessy, executive vice president of leasing with Unibail-Rodamco-Westfield U.S. &nbsp;<br>\u201cOur recent commitments from some of the world\u2019s most influential brands reinforce that confidence.\u201d<\/p>\n\n\n\n<p>The industry expects continued same-store sales growth at the top of the market, and an increasing focus on long-term brand building rather than short-term cycles.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-shifting-landlord-tenant-relationship\">A shifting landlord-tenant relationship<\/h2>\n\n\n\n<p>In a market with uneven demand and a more selective audience, landlord flexibility has become a critical differentiator. Instead of traditional long-term leases with fixed rent, retailers and landlords are aligning on the strategies best positioned to capitalize on affluent consumer demand without exposing themselves to undue risk.<\/p>\n\n\n\n<p>Some trends include more flexible leases with renewal options, percentage rent and revenue sharing between brands and landlords. Arrangements also include smaller, flexible format concepts in affluent suburban nodes and <a href=\"https:\/\/www.commercialsearch.com\/news\/high-street-retail-regains-traction-in-the-new-downtown\/\">core business districts<\/a>, as well as pop-up and limited-term activations in emerging markets to build buzz and test demand.<\/p>\n\n\n\n<p>Landlords and retailers are also collaborating to curate their brands more selectively, pairing luxury flagships with smaller complementary retailers, food and beverage, hospitality, wellness, culture and service offerings that increase foot traffic and dwell time.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/retail-market-trends\/\">What Will Power Retail\u2019s Next Act in 2026?<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>Another trend, which has grown over the last few years, is luxury retailers purchasing real estate and becoming their own landlords. \u201cLuxury retailers are among the most well-capitalized retailers,\u201d observed Ebere Anokute, head of Americas retail research at CBRE. \u201cWe\u2019ve seen the trend emerging over the last five to six years, and while it\u2019s something we\u2019re keeping an eye on, I wouldn&#8217;t be surprised if that&#8217;s a trend that continues.\u201d<\/p>\n\n\n\n<p>For luxury retailers, owning properties provides them with greater control over how they use and share their space. As owners of mixed-use properties, they can maintain their storefront and brand identity while sharing their retail space and creating partnerships with complementary luxury brands. At the same time, being able to collect rents from office space, hotels and other tenants creates a steady revenue stream and a hedge against shifts in the retail market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-prestige-vs-price-cultivating-the-aspirational-shopper\">Prestige vs. price: Cultivating the aspirational shopper<\/h2>\n\n\n\n<p>For luxury brands seeking to develop new audiences, the &#8220;aspirational market&#8221; has become a critical growth engine. Gen Z and Gen Alpha consumers are drawn to premium labels but remain price-conscious, seeking experiences, curated collections and entry points into aspirational luxury.<\/p>\n\n\n\n<p>Retailers are responding with strategies including tiered product offerings that preserve brand cachet while engaging aspirational buyers.<\/p>\n\n\n\n<p>\u201c<a href=\"https:\/\/www.commercialsearch.com\/news\/charting-luxury-retails-course-in-the-new-economy\/\">Hyper-personalization<\/a> has become a strategy to prioritize the sustainability of a lot of these brands,\u201d according to Erika Schanke, executive vice president of global retail business development at JLL. \u201cAI-powered CRMs are analyzing a customer\u2019s purchase history, preferences and engagement signals while AI-powered stylists are providing recommendations. The goal is to create a bespoke service that seamlessly integrates the at-home and in-store experience. Everything is built on creating unbreakable customer loyalty.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/icsc-special-report-how-retail-is-leveraging-ai\/\">When Retail CRE Pros Talk AI<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>Luxury resale\u2014or recommerce\u2014is also growing into a professionally, data-driven retail segment. What was once perceived as secondary-market consignment is now a curated, authenticated and often digitally integrated experience. This includes luxury resale, rental and repair services. This trend is particularly appealing to younger eco-conscious consumers who want to take advantage of luxury goods while maintaining a lower carbon footprint.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-an-evolving-luxury-retail-market\">An evolving luxury retail market<\/h2>\n\n\n\n<p>Luxury retail is no longer about opulence alone, it is about relevance, experience and adaptability. As 2026 unfolds, the luxury retail market won\u2019t be defined by contraction or expansion, but by strategic refinement.<\/p>\n\n\n\n<p>\u201cWhile it\u2019s easy to look at <a href=\"https:\/\/www.commercialsearch.com\/news\/saks-global-bankruptcy-raises-questions-for-cre\/\">recent bankruptcies<\/a> and think luxury is gone, that isn\u2019t the case. Unlike 20 years ago, when luxury had to be through the wholesale model,\u201d noted Schanke, \u201cluxury brands have taken control over their own image and their own customer experience. The direct-to-consumer shift allows them to create their own narrative, stores and customer experience.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The K-shaped economy, spending patterns and aspirational shoppers will be vital to both brands and landlords.<\/p>\n","protected":false},"author":3588,"featured_media":1004790972,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21742,21749,51037],"tags":[32789,32796,50512],"class_list":["post-1004790971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-latest","category-retail","category-trends","tag-cbre","tag-jll","tag-unibail-rodamco-westfield"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Luxury Retail in 2026: Where Opportunity Lies - 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