After a sharp contraction in 2020, the personal luxury goods industry has come roaring back beyond 2019 levels and is set to reach $327 billion this year, according to a new report from Bain & Company.
That’s no surprise to Rich Dinning, senior general manager of Tysons Galleria in McLean, Virginia. “We’re consistently seeing lines of customers outside the doors of high-end retailers like Gucci, Louis Vuitton, Chanel, and Cartier,” said Dinning. “There’s a lot of pent-up demand for shopping right now, particularly in the luxury sector.”
Tysons Galleria, which has long catered to visiting dignitaries and high-net-worth locals, is uniquely suited to meet renewed consumer demand for luxury. From Burberry to Prada, Versace to Celine, Tiffany to Cartier, the 33-year-old shopping destination that’s part of Brookfield Properties’ retail portfolio houses a wealth of high-end brands under one roof.
And now after recently unveiling its new 200,000-plus square-foot wing, Tysons Galleria — one of 11 luxury retail destinations across the country that make up Brookfield Properties’ Iconic Collection — is further bolstering its luxury brand portfolio. Saint Laurent, Zegna, CHANEL, and Ralph Lauren are all expanding their existing footprints to build flagship stores that will allow the brands to bring in more product offerings, and both Balenciaga and Van Cleef & Arpels are set to open this year.
Addressing growing consumer demand for luxury experience-based goods, the new wing showcases experiential concepts CMX Cinebistro and Bowlero, as well as high-end home furnishings brands Arhaus, Crate & Barrel, CB2, and RH — a brand that is itself a pioneer in next-level brick-and-mortar experiences.
In addition to luxury experiences, Gen Y and Gen Z customers, who are predicted to make up 70% of the luxury market by 2025, are also demanding luxury goods ‘with a purpose,’ according to the report.
“The changes in the luxury industry over the past 20 years have been remarkable, and the emergence from the Covid crisis comes as a renaissance for luxury brands,” said Claudia D’Arpizio, a Bain & Company partner and lead author of the study. “Where once it was all about status, logos and exclusivity, luxury brands are now actors in social conversations, driven by a renewed sense of purpose and responsibility.”
With the personal luxury goods market predicted to grow 6-8% annually to more than $360 billion by 2025, Tysons Galleria continues to build upon its reputation as a rarified retail destination while setting the standard as a marketplace of the future. “Between the redesign of the new wing and the new tenants that we’ve brought in, we feel that we’ve created something truly special for our customers and community,” Dinning said. “Together with our retail partners, we are reimagining retail for a whole new generation of shoppers.”
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