According to data analytics company Euromonitor International, the luxury retail landscape is being reimagined, with brands moving beyond transactional spaces to offer curated lifestyle experiences
In 2025, global physical luxury stores accounted for 81% of personal luxury goods sales, reflecting the sector’s resilience and the continued importance of in-person engagement.
Euromonitor International’s World Market for Luxury Goods 2025 report highlights that the luxury market – valued at $1.5tn in 2025 - remains resilient, despite continued macroeconomic and geopolitical disruptions.
Referencing the latest findings within the Luxury Goods category from Euromonitor International’s Passport knowledge hub, Fflur Roberts, global insight manager for luxury goods at Euromonitor International, said: “Amidst market uncertainty, the industry is undergoing a profound transformation, shifting from product-centric models to experience-driven engagement. Wellness, lifestyle and emotional resonance are emerging as new markers of status, reshaping how brands connect with consumers.”
Luxury growth in Sub-Saharan Africa
Euromonitor International reports that South Africa (15%) stands out in the leading markets for growth alongside, Sweden (12%)[KC1], India (10%), and the United Arab Emirates (9%).
Sub-Saharan Africa (SSA) presents new opportunities for luxury brands as affluence rises and consumer tastes shift. South Africa is seeing notable growth in luxury goods, positioning Sub-Saharan Africa as a key player in the global luxury market.
In 2025, physical stores remained the dominant channel for luxury goods in South Africa, driven by affluent consumers’ preference for immersive, high-touch shopping experiences.
The expansion of luxury retail spaces, including curated concept stores featuring brands like Dolce & Gabbana, Louis Vuitton, and Gucci, elevated the in-store experience. Multi-brand stores and premium venues enhanced accessibility and service, while retailers focused on personalised consultations and exclusive previews to deepen consumer engagement.
Human touch elevates retail
Physical luxury stores are becoming expressions of identity through exclusivity and hospitality. These environments mirror high-end hospitality, with concierge-level service and engaging storytelling.
Although digital channels are more personalised, many affluent consumers value human touch. According to Euromonitor’s Voice of the Consumer: Retail Survey 2025, 52% of high-income shoppers prefer shopping in-store for fashion – up from 36% in 2023 – highlighting renewed appreciation for tactile experiences that digital platforms cannot fully replicate.
While e-commerce surges, luxury brands are reimagining stores as cultural destinations that inspire, connect and reward loyalty through interactive experiences.
Lifestyle drives luxury evolution
Luxury spending has shifted from personal goods towards experience-led categories, reflecting deeper changes in consumer values. Experimental luxury showed resilience, with luxury travel and hospitality markets growing 8% in 2025 to reach $10bn.
This momentum highlights a broader consumer pivot, where wellness, lifestyle and emotional connection are becoming new status symbols. The “third space” – environments beyond home and work – has evolved into dynamic hubs and wellness real estate blending lifestyle, retail and social experiences. These spaces offer exclusivity, community and personal fulfilment, prompting brands to expand into new verticals.
Ageing affluence fuels demand
The 60+ age group is rapidly growing in affluence and influence, driven by increased life expectancy, improved healthcare and a generational shift in lifestyle priorities. This cohort is redefining luxury - seeking indulgence and sophistication but also empowerment and simplicity.
Their spending favours luxury offerings that enhance quality of life – from wellness travel, spa-led hospitality and age-inclusive luxury skin care to home innovations, real estate and luxury retirement villages supporting “ageing in place”.
Roberts concludes: “For brands, this is a prime moment to rethink premium experiences through the lens of longevity and conscious indulgence, designing services that cater to a generation with time, resources and a growing appetite for elevated living. The luxury sector’s growth will depend on its ability to adapt to these evolving consumer opportunities.”
