Main Streets across the World 2023

MAIN STREETS ACROSS THE WORLD 2023 | 32

GLOBAL TRENDS AND INSIGHTS 03

Luxury shoppers are focusing more closely on experiences as more conspicuous items are being seen as increasingly taboo given wider economic pressures. Such transformation is manifesting in different ways. Brands themselves are expanding into new sectors including hotels, residences, interior design and hospitality as they double-down on experience. Such moves have seen the rise of Armani/Casa, Bulgari Hotels and Resorts as well as LVMH’s Cheval Blanc Hotels. Changes have been evident in the tenant mix on main streets, with beauty services and cosmetics, for example, becoming more prominent. Such growth highlights the level of nuance within the luxury sector. More widely, fashion, sports and athleisure brands have also become more focused on curating high quality in-store experiences, having made significant investments into their flagship stores. At the root of “experience” is the need for high quality staff, and here brands again are being challenged. Despite the wider economic slowdown, labour markets across the world remain exceptionally tight, which has fuelled a wage price spiral in some economies. More widely, labour has become increasingly disrupted as more strikes have occurred in the U.S. and much of Europe. As a result, talent retention and recruitment remain a top priority. Employees serve as brand ambassadors, representing the brand’s values and contributing significantly to the shopper experience and therefore the company’s long-term success.

CUSHMAN & WAKEFIELD