In 2023, fashion and accessory brands dominated new store openings globally, accounting for 63 percent of the total. While overall new store activity slowed across most categories, jewelry brands bucked the trend with a 30 percent increase in new openings, albeit starting from a low base.
In Romania, the luxury retail market is shyly establishing itself. The success of this segment is closely tied to the overall luxury real estate market, with the presence of branded residential or hotel projects significantly boosting the likelihood of luxury retail brands entering the market. By 2028, Romania is set to welcome 13 new five-star hotels, including prestigious brands such as Mondrian, Hyatt, and Kempinski. In the residential sector, Bucharest has not yet welcomed any branded projects, but there have been announcements of collaborations with high-end brands for interior finishes and furnishings on some projects.
Specifically in retail, Hermès group recently announced the intention of opening their first store in Bucharest and Tesla plans to open a dedicated showroom soon. These developments, coupled with the country’s projected healthy economic growth, create a promising environment for the expansion of luxury retail brands in Romania.
“The increasing interest of luxury brands in Romania is putting the country on the global map for high-end retail. Traditionally, ‘luxury’ is not a word that comes to one’s mind when thinking about Romania, but the new-found attention from prominent international players in this segment serves as a strong vote of confidence in its potential,” says Codrin Matei, Principal Partner at Crosspoint Real Estate, Savills’ associate in Romania.
