This report on the Paris retail market reflects on the recent trends and developments following this summer’s Olympic Games and the international rise of celebrity and influencer brands.
Economic Context and Market Resilience
While the economic impact of the Olympics has been mixed, the longer-term outlook is positive. The fall in inflation is currently supporting consumption, despite certain economic and political instabilities. New city measures, such as the low-emission zone and right of pre-emption in central arrondissements, will need close monitoring for their potential effects on retail activity.
Continued Optimism in Paris Retail
Despite recent challenges—ranging from the Yellow Vests movement to transport strikes and health crises—the Paris retail market has shown resilience since early 2024. Leasing activity may not have reached its pre-Olympic levels, but Paris remains a sought-after location, evidenced by new international brands entering the market and relatively low vacancy rates. Investment activities have also picked up with notable transactions in prime locations.
Stability in Retail Streets
The demand hierarchy among Paris’s retail streets remains stable. The Marais and the Champs-Élysées continue to be highly attractive, while streets like rue de Passy, rue du Commerce, and avenue Victor Hugo also see strong demand. Revitalization efforts in areas such as the Madeleine-Capucines district, rue François 1er, and avenue Montaigne are driving retail attractiveness.
Diverse Retail Demand
There is encouraging diversity in retail demand across various sectors, including restaurants, food, sportswear, cosmetics, accessories, second-hand goods, and electric vehicles. Brands typically found on the outskirts are increasingly moving into Paris, reflecting a dynamic market environment.
Emergence of Celebrity and Influencer Brands
Newmark’s study highlights the influence of celebrity and influencer brands within the retail space. Nearly 700 brands have been analyzed, with many planning significant projects in central Paris. This trend underscores the growing impact of social media on brand communication and distribution, shaping the retail landscape.
