The Champs-Elysées Avenue in Paris has regained its status as the most alluring high street in Europe. This iconic avenue is currently undergoing a revitalization with the opening of flagship stores for renowned brands such as Lacoste, Sandro, and The Kooples in recent weeks and months. The trend is set to continue with upcoming store openings for Saint Laurent and Zara. Moreover, Louis Vuitton plans to expand its flagship store, and Foot Locker has taken over a larger space previously occupied by Gap.
The resurgence of the Champs-Elysées can be attributed to the forthcoming 2024 Paris Olympics, as the city plans to give the avenue a sustainable makeover. A study conducted by Cushman & Wakefield and My Traffic has confirmed the significant increase in footfall on this famous Parisian avenue. Between May 2021 and June 2022, the average monthly footfall in front of stores more than doubled, with a staggering 880,000 pedestrians passing by each month. This number is significantly higher compared to the 435,000 recorded between May 2020 and June 2021. It is worth noting that the protests by the ‘yellow vests’ movement in 2019 and early 2020 had an impact on footfall during that period.
In comparison to the same period in 2019, footfall on the Champs-Elysées has seen a promising 23% increase. Despite ongoing renovations and a relatively high availability rate of 22.4%, the demand for rental space remains strong due to the avenue’s potential to attract 30 million tourists annually. Prime locations on the Champs-Elysées are priced at an average of €16,350 per square meter per year.
While mid-range brands may be less prevalent on the avenue, luxury labels and high-end retailers continue to flourish. Sports and lifestyle giants, Adidas and Nike, have established massive flagship stores on the Champs-Elysées. Additionally, the avenue’s promising opportunities for 2024 have attracted several Asian electric mobility companies. The Champs-Elysées is also part of a larger trend in Europe, with other major commercial streets experiencing an increase in footfall and tourist visits. Amsterdam’s Leidsestraat saw a 55% increase in footfall, followed by a 49% increase in Rome’s via del Corso, a 44% increase in Madrid’s Gran Via, a 31% increase in Berlin’s Kurfürstendamm (which topped the table last year), and a 31% increase in London’s Oxford Street. Only Brussels’ rue Neuve saw modest growth, with footfall rising by 3%.
According to Christian Dubois, head of the Commercial Real Estate office at Cushman & Wakefield, visitors are gradually returning to Europe, although those from Asia and Russia are still lagging behind. This year is seen as a transitional period for major commercial streets as footfall has started to accelerate since the beginning of 2022 in Amsterdam, Rome, and London. However, footfall has yet to reach pre-pandemic levels in most cities. As a result, rents, which experienced a steep decline last year, have now stabilized.
The Champs-Elysées avenue is undeniably thriving, but it requires a significant investment from brands. The study reveals that average rents on the avenue are higher compared to other analyzed high streets. For instance, rent on London’s Oxford Street costs £7,000 per square meter per year, while on via del Corso, it costs €5,000. On the Gran Via and Kurfürstendamm, it costs €2,700, and on the Rue Neuve, it costs €1,550. Luxury brands dominate most of these high streets.
In conclusion, the Champs-Elysées Avenue in Paris has successfully reclaimed its position as the most appealing high street in Europe. With the upcoming Paris Olympics and a surge in footfall, the avenue has once again become a highly sought-after location for flagship stores of top brands. Although rental costs remain high, the potential customer base of 30 million annual tourists continues to attract luxury labels and retailers. As major commercial streets across Europe witness a revitalization in footfall, brands are seizing the opportunities to open flagship stores and stabilize rents.
Useful links:
– Paris Info: La Rue du Commerce
– Time Out: The Best Shops on the Champs-Elysées
