Luxury Store Optimisation: Fewer Locations, Greater Value per Store
Luxury brands are reconsidering the role of physical networks. The Chinese source's reading of Deloitte's 2026 Global Powers of Luxury Goods report describes resources shifting towards stronger stores, richer experiences and deeper digital service, rather than store count alone.
Why network optimisation is receiving attention
The cited 2026 investment priorities include brand and market expansion at 26.2%, digital acceleration at 20.5%, and omnichannel and customer experience at 13.8%. The source also reports 39.3% planning network optimisation and 36.2% planning lower capital expenditure.
Read together, these figures suggest selective concentration rather than a simple withdrawal from physical retail: investment in brand influence alongside a review of less effective locations.
How the store's role changes
A French luxury-group executive cited in the article describes a move from several locations in one city towards fewer, higher-quality flagships, with more space, broader stock, richer experiences and deeper service.
Three changes follow. The store becomes a brand landmark as well as a sales point. Performance includes customer service, membership and experience alongside revenue. Resources are concentrated where they can deliver a stronger expression of the brand.
Fewer stores can make the physical experience more important
A smaller network needs compelling reasons to visit. Larger presentation spaces, art, immersive environments and professional advice can make a flagship a destination rather than simply the nearest place to buy.
The store becomes a setting where the brand's story is experienced, shared and remembered.
Digital service connects the visits
Space design is only part of the change. A customer can book online, receive informed advice in store and later return through a digital purchase or after-sales interaction.
Relevant purchase history, preferences, sizes and service records help advisors continue the relationship. Retail software connects sales, member recognition, stock enquiries and service; CRM supports the profile, benefits and follow-up process.
PEKON observes brands asking for greater depth in these connections, rather than simply the presence of a digital feature.
Rebuild operations around the experience
A distinctive space, an artwork, an exclusive item or a private workshop can motivate a dedicated visit. Service quality also depends on whether the customer feels recognised and respected.
Store optimisation therefore connects space, staff, merchandise, membership, content and service. Refurbishment by itself does not establish the complete experience.
The strategic role of brand, technology and service
- Brand: make the store a meaningful destination and a recognisable expression of identity.
- Digital capability: maintain continuity before, during and after the visit.
- Experience: create a setting for culture, service, social interaction and relationships alongside transactions.
The source's argument is that fewer locations can support greater value when resources are deliberately concentrated.
If there were only one store in a city
Ask whether it represents the brand well, serves its most valuable customers, offers an experience unavailable elsewhere, retains useful customer knowledge and creates moments people want to share.
These questions provide a more useful design brief than store count alone.
Measure value, not just footprint
Network optimisation removes inefficient capacity while investing in store quality, customer experience and long-term relationships. The objective is a stronger physical presence in the locations that remain.
Source note: this article follows the Chinese interpretation of the corporate-strategy section of Deloitte's 2026 report, described as research across ten countries and 420 luxury executives, with August–September 2025 data.
Frequently asked questions
Does optimisation simply mean closing stores?
No. It means adjusting the network and directing resources towards locations with stronger operating and experience value.
Why do flagships matter?
They combine sales, brand presentation, customer service, content and premium experiences, giving them a role beyond a conventional outlet.