Luxury store portfolios will be vastly different in five years’ time, as brands pivot away from waning American and European locations to chase cash-rich millennials in Asia. Luxury brands are opening fewer offline locations overall, cutting spending and renegotiating leases to limit the damages brought by Covid-19. The exception is in China, where new stores are needed to meet the demand of high-spending luxury customers.

Bain expects Chinese local spend to account for up to 28 per cent of global luxury consumption by 2025, up from 11 per cent in 2019, and brands are planning to change their retail footprint accordingly.