Luxury brands are aggressively expanding their retail footprint across the United States, targeting a growing demographic of high-net-worth individuals fueled by gains in the stock market and the artificial intelligence sector. According to a report by the real estate firm Savills, North America led the world in new luxury retail openings last year, accounting for 27% of global activity.
The Shift in Luxury Geography
The center of gravity for the global luxury market has shifted toward the United States, driven by a surge in domestic wealth. UBS data indicates that approximately 440,000 Americans reached millionaire status in the previous year, a trend largely attributed to robust stock market performance and the valuation of AI-related companies.
This wealth accumulation is prompting luxury houses to move beyond traditional hubs like New York and Los Angeles. Brands are increasingly establishing a presence in secondary markets—such as Nashville, Tennessee, and Scottsdale, Arizona—to reach affluent residents who have relocated from higher-tax states. Hermès, for instance, expanded into both Nashville and Scottsdale last autumn and has scheduled a new boutique opening at the Plaza del Lago in Wilmette, followed by a Williamsburg, Brooklyn location this September.
Changing Consumer Priorities
The purchasing habits of this new generation of wealth differ from those of previous cohorts. Filippo Bianchi, managing director and senior partner, global head of luxury at Boston Consulting Group, noted during the presentation of the 12th edition of the True-Luxury Global Consumer Insights report that these consumers prioritize durable assets over "soft" goods.
- Durable Goods: High-net-worth individuals are currently focusing investment on real estate, yachts, and automobiles to establish a foundational asset base.
- Timepieces and Jewelry: Watches remain a primary spending category. In 2025, the U.S. was the leading destination market for Swiss watch exports.
- Experience-Based Luxury: Spending on wellness programs, longevity treatments, and exclusive travel has gained momentum alongside investments in high-end technological status symbols.
According to Bianchi, these new buyers spend roughly one-third less on traditional luxury categories like clothing and leather goods than their predecessors, challenging brands to rethink their service models and experiential offerings to remain relevant.
Brand Strategy and Market Presence
Major fashion houses are responding to these shifts by anchoring their marketing in American culture. In recent months, brands including Dior, Gucci, and Zegna have hosted runway shows in Los Angeles and New York to solidify their connection with the U.S. market.
Moncler is similarly prioritizing the U.S. for its store expansion strategy this year. This geographic diversification is essential, as the current density of luxury retail stores in the U.S. remains relatively low compared to the concentration of high-net-worth individuals residing in the country, according to Savills’ retail analysis.
The Challenge of Emotional Connection
Despite the aggressive retail expansion, luxury brands face the hurdle of building an emotional connection with a demographic that often eschews traditional markers of wealth. Industry analysts point out that while these consumers have significant capital, their personal styles often remain casual. For brands, the objective is to translate their heritage and prestige into a value proposition that resonates with a client base that may prioritize functional, tech-integrated, or experiential luxury over conventional luxury apparel.
Keep reading