Global Luxury Goods: Retail Network Dynamics - China

Research evidence excerpt

Global Luxury Goods: Retail Network Dynamics - China

22 July 2026

Global Luxury Goods

We update our survey of retail store numbers in Mainland China (first published in Luca Solca

+41 582 723 126 early-2025) to highlight diverging retail strategies in the country.

luca.solca@bernsteinsg.com

A confluence of factors has caused luxury sales in Mainland China to retreat to pre-

Maria Meita pandemic levels. Chinese consumers, faced with tightening income prospects, have

+44 20 7170 0540 grown more discerning. Those seeking deals have flocked to Japan and South Korea to

maria.meita@bernsteinsg.com

capture FX-driven price gaps. Value-conscious middle class consumers who choose to

Yi-Peng Khoo, CFA stay at home now have a wider array of local and aspirational brands to trade down to (see

+44 20 7676 6822 Global Luxury Goods: 10 Key Takeaways from Our Trip to China and Global Luxury Goods:

yi-peng.khoo@bernsteinsg.com The Rise of Chinese Leather Goods Brands). This has likely led to flagging retail productivity.

Eric Chen, CFA Retail consolidation is a growing priority in Mainland China. In total, we count 14

+852 2123 2628

eric.chen@bernsteinsg.com fewer retail locations between 2024 and 2026, a -2% overall decline, reflecting a mix of

net store closures and relocations. Kering leads the charge with an estimated -14% fall

Specialist Sales in the number of Gucci doors (to 63), -12% at Bottega Veneta (to 37) and -6% at Saint

Laurent (to 45). Prada Group, in contrast, sees its retail footprint growing +15% and +17%

Alix Turner at Prada and Miu Miu. Dior and Hermès continue to invest in the country, while Burberry, +44 20 7762 4044

alix.turner@bernsteinsg.com Louis Vuitton and Cartier have trimmed their portfolios slightly.