Luxury Retail in Spain 2023
Spain is the European country where luxury tourism has a greater weight in its economy, c. 2% of the total GDP, compared to the average of the rest of the European Union countries (below 1%). Despite having a great weight in our economy, it is the country where generates less value, as, the average daily expenditure by tourists visiting our country is less than €1,000, while in other European countries such as Germany or the United Kingdom stands at c. €1,000 and €2,000 each. In Spain, the main luxury tourism destinations chosen by international tourists are Madrid, Malaga and Barcelona.
Luxury retail sector has been also gaining importance in all countries’ economies, and this is partly thanks to changes in habits and the growth in the importance and use of technology since Covid 19. In Spain, this sector has grown by c. 9% compared to 2019 levels. In the coming years, it is expected to continue growing and gaining weight in the economies, especially in Spain.
This change is also due in part to the change of vision that society and brands have about luxury. Luxury accessories used to be were less accessible and were especially focused on adults. But this trend has changed: it is more common to see young people wearing luxury accessories and luxurious clothing, so certain brands, such as LVMH, have focused their product lines on young people, new potential customers of this type of accessories.
One of the main drivers of luxury shopping is international turism, as tourists often take advantage of their trips to buy clothing or accessories that they cannot find in their respective countries. In Europe in 2022, the opening of luxury stores grew c. 75% thanks, to a large extent, to the recovery of tourism after some bad years caused by Covid-19 and to the increase in the availability of space in prime areas of cities.
As we said, in Spain, Madrid is the main destination for the luxury tourist, benefiting greatly from the elimination of tax-free for tourism the United Kingdom. The main area where luxury retail is located in Barrio Salamanca, where numerous luxury hotels and restaurants are also located. In Barcelona, Paseo de Gracia stands out, having the most expensive rental prices in Spain (€3,000/sq.m/year). But there are also other cities that are gradually gaining more weight in this sector, such as Palma de Mallorca and Marbella.