Major global brands like Apple, Nike, Galeries Lafayette, and Adidas are flocking to the Champs-Élysées in Paris to establish their presence. Despite the high costs involved, these brands are more focused on enhancing their brand image rather than profitability. The new stores on this renowned avenue are impossible to miss, with their flagship designs being developed behind construction barriers.
These brand locations not only focus on product sales but also offer customers a unique “experience,” incorporating animations and original concepts. For instance, l’Occitane collaborated with pastry chef Pierre Hermé to create an innovative store. Nike and Apple also follow this “experience” strategy, with Apple’s store set to open soon.
Companies like Monoprix have renovated their stores on Champs-Élysées to cater to the upscale nature of the area. Sophie Bocquet, the commercial director of streetwear-focused store Citadium, confirms that the Champs-Élysées is an exceptional place to attract tourists. To stand out on this avenue, brands must provide a high-quality offering and create a destination in itself to captivate the 100 million visitors that come every year.
According to Jean-Noël Reinhardt, president of the Champs-Élysées Committee, brands on the avenue must offer experiences that cannot be found elsewhere. This requires additional investments and risks, as stated by Antoine Salmon, director of the Retail Department at Knight Frank real estate agency. Apple, for example, will pay a hefty yearly fee of 14 million euros for a space of 6,200 square meters.
The Champs-Élysées is ranked as the fourth most expensive shopping street globally, with an annual rent of €14,440 per square meter. Despite the high costs, opening a store on this iconic avenue is primarily aimed at developing an international image. Profitability is not solely dependent on sales revenue, as companies often allocate a portion of their marketing and communication budget to these locations.
While most stores on the Champs-Élysées are profitable, some brands, such as car manufacturers Peugeot, Citroën, Mercedes, and Toyota, have left due to the rise of the internet. However, luxury brands like Dior, Chanel, Lancôme, Bvlgari, and Galeries Lafayette are entering or planning to settle on this avenue, showcasing its major transformation.
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