Romania is shaping up as an emerging luxury market, although this sector’s development has been hampered by the limited availability of suitable high-street retail spaces. However, Calea Victoriei could become an increasingly relevant destination for luxury brands shortly.
The expansion has been kick-started by Louis Vuitton, which opened a store last year at the goud floof of the InterContinental Athenee Palace Hotel, and the Italian brand Zegna, which recently launched a mono-brand store in a historic villa near Calea Victoriei.
The next wave of luxury entries includes Dior, Saint Laurent, Celine, Valentino, Hermès, Chanel, and Guerlain, as announced by Hagag Development Europe, which will dedicate approximately 4,000 sq. m to luxury retail following the complete refurbishment of Stirbei Palace.
European luxury retail sales increased by 4% vs. 2023, but below the growth rates recorded in 2023 and 2022, which stood at 7% and 23%, respectively, according to Cushman & Wakefield Echinox data. In the CEE and SEE regions, Prague stood out, with five luxury brand store openings in 2024.
