Luxury Retail’s next big bet is being driven by the AI economy
Synopsis
Luxury companies are increasingly focusing on regions where technology and AI-related wealth is growing, reshaping global expansion plans. New industry data shows North America led luxury store openings in 2025, while brands including Hermès, Moncler and Richemont reported stronger momentum in markets supported by affluent consumer spending.
Luxury brands are expanding in markets benefiting from technology-driven wealth growth as demand softens elsewhere, with North America leading global store openings and luxury investment activity.
Key Highlights
- North America accounted for 27% of global luxury store openings in 2025.
- Europe ranked second at 26%, while China represented 19% of openings.
- Richemont reported 18% sales growth in the Americas during the latest quarter.
- Luxury brands are targeting regions benefiting from technology and AI-driven wealth creation.
- Global luxury store openings fell to their lowest level since 2020, according to Savills.
Luxury is putting more money into markets gaining from the build-up of technology wealth, while high-end customers provide a buffer to sales declines in China and some parts of Europe.
Companies such as LVMH, Hermès, Richemont, Moncler, Kering and Zegna are increasing the number of stores and customer service activities in the areas where wealth related to technology, artificial intelligence and financial markets is still rising.
The change follows the luxury industry's most turbulent trading year in many years.
Store Openings Follow the Money
North America was responsible for 27% of the luxury store launches in the world in 2018, followed by Europe with 26% and China with 19%, according to new data from Savills' Global Luxury Retail Outlook 2025.
The report also revealed that the number of new luxury stores being opened around the world is at its lowest since 2020, demonstrating an increasing luxury brand focus on where to invest.
Luxury groups are looking for places where there are more and more high-end consumers and they have high discretionary spending.
Technology Wealth Reshapes Luxury Demand
Industry executives quoted in Reuters reports referenced the profits brought by technology firms and business related to artificial intelligence as a main contributor to luxury items.
The trend follows technology stocks being one of the primary vehicles for creating wealth around the world. It has been two years since several of the world's biggest listed companies, including AI technologies firms and semiconductors, have seen significant increases in their market value, which has led to a significant increase in personal wealth for investors, founders and executives.
High fashion brands are reacting by moving outside of the traditional shopping areas. Moncler just opened in Aspen and will be opening a flagship store in New York's Fifth Avenue, and Hermès has visited Nashville and Scottsdale.
Regional Gap Widens Across Luxury Market
Recent earnings indicate that sales in the Americas are more robust than some other markets.
Richemont, owner of Cartier, said it made a 18% sales gain in the Americas region in the January-March quarter, its ninth in a row of double-digit growth in the region.
In the meantime, the luxury industry is grappling with issues in China where consumer confidence and spending has been muted compared to pre-pandemic growth.
A Bain & Company study of the luxury market has identified a trend to regionalisation, with growth in some regions, and pressure in others.
Where new money is being generated is becoming an important determinant of investment decisions, especially for luxury groups in which investment decisions are increasingly driven in the name of luxury.
FAQs
Q1. Why are luxury brands targeting consumers benefiting from the AI boom?
Rising wealth from technology and AI-related businesses is supporting luxury spending even as demand slows in some traditional markets.
Q2. Which luxury brands are expanding their retail footprint the fastest?
Groups including Hermès, Moncler, LVMH, Richemont, Kering and Zegna are increasing investments in stores and customer-focused operations.
Q3. What does the latest luxury retail data reveal about global demand?
Savills data shows North America led global luxury store openings in 2025, while overall luxury retail expansion reached its lowest level since 2020.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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