Is 2023 a year of surprises for the retail Luxury industry? Is Brick & Mortar retail recovering with the new normal?

Whether or not we believe it, 2022 wasn’t a year for the faint of heart. The lift-up of restrictions in several parts of the world was such a relief. However,?the Russian invasion of Ukraine, record inflation as well as the constant reminders of climate change are not coming they are already in effect. The past few years have also proved that we can be a global community and bound with each other as one.

?Even though the crises of the above-mentioned issues, industries like luxury shopping and online marketplaces have shown drastic hype in sales. However, online shopping is becoming dull since the COVID-19 restrictions have been lifted. Finally, it has been said that 2023 is the year for Brick & Mortar retail will enter the goldilocks zone: Having the number of physical stores to fulfil the demand of consumers’ need for In-Store shopping.

?The track shows, more than 4200 retail stores have been opened in the US than closed since 2016. There be an increased rise in the development, renovation and remaining existing properties than for new builds. Many analysts predicted the pandemic would accelerate that decline Instead, consumers emerged from lockdown with a new admiration to go to a physical store shopping to try before buying.

?In the first half of 2022, imports of luxury Swiss watches into the UK increased by 31% year over year, according to the Guardian. These watches typically cost around ￡6,000 (about $7,400 at current exchange rates). Meanwhile, sales of lower-priced watches, those costing less than ￡2,500 (about $3,100), were declining at the time. British luxury brand Burberry reported an 11% year-on-year increase in sales in the quarter ending in September. LVMH, a luxury goods company that owns brands such as Dior, Tiffany, Mo?t Hennessy, and Louis Vuitton, reported a 19% increase in revenue for the third quarter of 2022, due to strong demand from Europe, the United States, and Japan.

However, an Insider Intelligence report found that the luxury goods sectors in the US and China have recovered during the COVID-19 pandemic, but economic challenges like an impending recession will affect middle-class spenders. Around 48% of young adults are now living with their parents in 2022, similar to levels in the 1940s, according to a Pew Research Centre analysis, USA Today, the University of Minnesota, and Morgan Stanley research. This trend may be beneficial for luxury retailers, as young adults who are living at home and saving on expenses like rent and groceries may have more disposable income for discretionary spending. Despite the pandemic, physical retail is expected to continue growing in 2023, partly due to direct-to-consumer brands seeking to connect with customers in person. E-commerce and physical stores will likely blend, with stores serving as spaces for retailers to interact with customers and fulfil online orders.

Shopping malls and retail stores in the UK especially in London have become a key success factor in attracting tourists as well as the local retail landscape. London’s famous shopping streets are dated back to 1571 which now have come far for its ambiance and interiors. With the returning of London shopping from post pandemic to in-store hopping, shopping centres are taking notice and updating to reflect the hunger of population for new experiences. These placemaking clearly demonstrates that Brick & Mortar shopping in the UK have a unique purpose where they are investing in landmarks for the new generations of communities along with the retail planners to redefine the retail as engaging and inspiring as possible for both local and international visitors. Coming into the new era of 21st Century, it is now seeming possible that this industry is also advancing at god’s speed.