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HomeLatest News'Pop-up' stores brighten the results of the luxury sector in Spain

‘Pop-up’ stores brighten the results of the luxury sector in Spain

Date: July 19, 2024 Time: 01:29:27

The ‘pop up stores’ or ephemeral stores -commercial spaces enabled by a brand for a short period of time- are increasingly increasing their presence in Spain, which in turn is boosting the income of the luxury sector, which this year is confident to grow above 7%. “The public is no longer just looking to buy, they want to live an experience,” highlights the president of the Spanish Luxury Association – Luxury Spain, Cristina Martín, in statements to EFE.

High-end brands seek to reinvent themselves through collaborations, such as the customization of the beach bar at the Puerto Romano hotel in Marbella with the well-known Fendi effects, the opening of a Dolce&Gabanna cafeteria in Puerto Banús, or the creation of ephemeral sales spaces at the point of sale. s strategic, known as ‘pop-up’ in English.

According to Luxurynsight’s latest annual report, these types of stores accumulated 68% of luxury retail activity in 2022 worldwide, compared to 28% for permanent stores. In the United States alone they generated $80 billion (almost €75 billion) in revenue last year and are expected to exceed $95 trillion (almost €88 billion) in 2025, according to Capital One Shopping.

“The ‘pop-ups’ are behind the increase in sales in the luxury sector in recent years, since they offer that complete brand experience in a representative space, in addition to allowing alliances of different entities under the same roof” says Martin. “In addition, they attract the attention of future buyers and position their brand in a more efficient way than the Internet, which is saturated,” completes Go PopUp’s digital strategy director, Carolina Argenté, to EFE.

Ephemeral stores are multiplying in Spain

The phenomenon moves to the streets of Spain, from a greenhouse improvised by Loewe in Madrid’s Plaza de Callao to the glass cubes, in which products from Louis Vuitton, Dior or Lacoste rest, in one of the marinas in Ibiza, one of the favorite locations to install ephemeral stores next to Marbella and Formentera. “More and more spaces are needed for ‘pop-ups’, which are the revolution in the retail sector,” says Argenté.

The Go PopUp agency, leader in the sector in Europe, has gone from having to constantly explain what a ‘pop-up’ is to accumulating “miles” of rental contracts each year for the more than 3,000 premises that it offers on its real estate platform for The installation mainly of commercial spaces, but also events or filming.

In addition, they are dedicated to the design of the project, decoration and dismantling of ephemeral stores of different budgets, in addition to managing the necessary municipal permits for the installation of containers on urban roads, hiring personnel or promoting the establishment on social networks.

“In recent years we have doubled our size and we plan to continue with the same growth rate in the coming years,” says Argenté, who recognizes the growing interest of companies in ‘pop-ups’, especially from Latin American entities that They seek to make themselves known in Europe. Go PopUp’s objective is to expand its business to other countries, although it has a presence in France, the United Kingdom, Germany, Italy, Ireland and the United States.

Boost of the luxury sector

The success of pop-up stores is one of the causes behind the growth of the luxury sector, which expects to end in Spain with an increase in its turnover of between 7% and 8% by the end of 2023, according to the Spanish Luxury Association. -Luxury Spain. The recovery of tourism in Spain influences the rebound in sales of the big brands, estimating that “between 80% and 85% of luxury sales are visitors”, according to the Deloitte expert in ‘retail’. , Bruno Rodríguez.

“Spain is an attractive country to make purchases and live experiences related to luxury, specifically, the fifth most powerful in Europe, but we intend to see it move up in the ranking,” asserts Martín, who will be part of an international mission , made up of public and private organizations, for the promotion of the country as a high-end destination in the Middle East in October.

Precisely, the countries of the Persian Gulf, along with China, the United States and Europe, are the origin of the majority of this visitor profile, who usually spends an average of 3,000 euros on purchases in Spain, according to the Spanish Luxury Association. . Spain. Globally, sales in the luxury sector are expected to grow between 5% and 8%, up to 360,000 or 380,000 million euros, the fashion and luxury director of the consulting firm Bain & Company, Claudia D’, tells EFE. Arpizio.

This is a lower percentage compared to the year-on-year variation between 9% and 11% in the first quarter of 2023 and even lower than the 20% growth rate recorded in 2022 compared to the previous year. The Rise in Interest Rates in Enidos or the Slowdown of China’s Economic Advancement Could Affect the INCREASE IN PLANETARI EXPENDITURE Arpizio Does Not Predict A Stop Or Setback, Partly Due To Tourist Flows And The Conversion Of Luxury Goods Into Pieces Of investment.

Precisely, the main group in the world sector, LVMH, registered a net profit of 8,481 million euros during the first half of the year, 30% more compared to the same period in 2022, and 42,420 million euros of income, a 15% than the previous year.

Hermès also increased its net profit by 36%, to 2,226 million euros, while Kering, despite the fact that its net profit fell by 10%, increased its income by 2%, to 10.1 billion. “There are estimates of constant and robust growth until 2030, which has allowed more than 80% of the main investment funds to recognize that they already have in their portfolio, or the intention, to make investments in groups in the luxury sector in the medium term,” points out Rodríguez

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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