LUXURY GOODS

In-person store sales still dominate in luxury goods sector – study

By our African Marketing Confederation News Team | 2025

Affluent consumers value the human touch and tactile experiences that digital platforms cannot fully replicate, Euromonitor report finds.

In 2025, physical luxury stores accounted for 81% of personal luxury goods sales, reflecting the sector’s resilience and the continued importance of in-person engagement. 

 

This is according to Euromonitor International’s ‘World Market for Luxury Goods 2025’ report, which highlights that the luxury market – valued at US$1.5-trillion in 2025 – remains resilient despite continued macroeconomic and geopolitical disruptions. 

 

“Amidst market uncertainty, the industry is undergoing a profound transformation, shifting from product-centric models to experience-driven engagement. Wellness, lifestyle and emotional resonance are emerging as new markers of status, reshaping how brands connect with consumers,” comments Fflur Roberts, Global Insight Manager for Luxury Goods at Euromonitor.

 

Human touch elevates retail 

 

The insights company says physical luxury stores are becoming expressions of identity through exclusivity and hospitality. These environments mirror high-end hospitality, with concierge-level service and engaging storytelling. 

Photo: Quang Viet Nguyen from Pexels

Although digital channels are more personalised, many affluent consumers still value the human touch. Just over half (52%) of high-income shoppers prefer shopping in-store for fashion – up from 36% in 2023 – highlighting renewed appreciation for tactile experiences that digital platforms cannot fully replicate. 

 

While e-commerce surges, luxury brands are reimagining stores as cultural destinations that inspire, connect and reward loyalty through interactive experiences. 

 

Lifestyle drives luxury evolution 

 

Luxury spending has shifted from personal goods towards experience-led categories, reflecting deeper changes in consumer values. Experimental luxury showed resilience, with luxury travel and hospitality markets growing 8% in 2025. 

 

This momentum highlights a broader consumer pivot, where wellness, lifestyle and emotional connection are becoming new status symbols.  

 

Euromonitor notes that the ‘third space’ – environments beyond home and work – has evolved into dynamic hubs and wellness real estate that can blend lifestyle, retail and social experiences. These spaces offer exclusivity, community and personal fulfilment, prompting brands to expand into new verticals. 

 

Ageing affluence fuels demand 

 

The 60-plus age group is rapidly growing in affluence and influence, driven by increased life expectancy, improved healthcare and a generational shift in lifestyle priorities. This cohort is redefining luxury – seeking indulgence and sophistication but also empowerment and simplicity. 

 

Their spending favours luxury offerings that enhance quality of life – from wellness travel, spa-led hospitality and age-inclusive luxury skin care to home innovations, real estate and luxury retirement villages. 

 

Luxury growth in sub-Saharan Africa 

 

Euromonitor reports that South Africa (15%) stands out in the leading markets for growth alongside, Sweden (12%), India (10%), and the United Arab Emirates (9%).  

 

Sub-Saharan Africa presents new opportunities for luxury brands as affluence rises and consumer tastes shift. South Africa is seeing notable growth in luxury goods, positioning the region as a key player in the global luxury market. 

 

In 2025, physical stores remained the dominant channel for luxury goods in South Africa, driven by affluent consumers’ preference for immersive, high-touch shopping experiences. The expansion of luxury retail spaces, including curated concept stores featuring brands like Dolce & Gabbana, Louis Vuitton, and Gucci, elevated the in-store experience. 

 

Multi-brand stores and premium venues enhanced accessibility and service, while retailers focused on personalised consultations and exclusive previews to deepen consumer engagement. 

 

“For brands, this is a prime moment to rethink premium experiences through the lens of longevity and conscious indulgence, designing services that cater to a generation with time, resources and a growing appetite for elevated living. The luxury sector’s growth will depend on its ability to adapt to these evolving consumer opportunities,” Roberts states. 

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Jason Lottering
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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.