2/26/2026 | Chain Store Age

Why luxury brands are going local 

Thomas Huth, O’Connor Capital Partners

Traditionally, iconic corridors such as Fifth Avenue in New York City and Rodeo Drive in Beverly Hills defined prestige and attracted affluent foot traffic. Until recently, luxury brands typically avoided secondary or Midwestern markets, focusing on established coastal hubs where tourism and international visibility drove most sales.

Today, luxury retail is naturally expanding into new markets and city centers like Columbus that have become ideal destinations. 

As someone engaged in retail real estate investment and capital markets, I have observed how consumer behavior, demographics and strategy are reshaping where luxury stores are located. And the strongest, experience-driven shopping centers are poised to outperform the broader market as luxury brands seek environments that deliver both sales and brand prestige.

The new geography of luxury

The pandemic accelerated trends that were already underway as consumers prioritizing convenience and local access over destination shopping. Brands increasingly began opening immersive, experience-driven stores in secondary markets with strong demographics.

According to Bain Capital, affluent consumers now account for 46% of all spending — and those buyers are not just found in New York and Los Angeles. Affluent consumers increasingly value convenience without compromising quality, and brands are responding by opening stores where customers live and work. This has created demand for luxury retail in secondary markets — particularly in dynamic mixed-use environments.

One prime example is Easton Town Center in Columbus — Ohio’s largest city — whose population of some 900,000 people is more than 45% larger than either Cleveland’s or Cincinnati’s. The area has a diversified economy that includes education, healthcare, technology, and finance sectors that support a growing base of high-end consumers. Paired with a thriving downtown and residential growth, Columbus offers a retail ecosystem that luxury brands increasingly value.

At Easton, Louis Vuitton, Gucci, Tiffany & Co., and Tory Burch have invested in full-service boutiques that compete on experience, service, and brand presence. The center’s recently debuted Fashion District has added first-to-Ohio names that include Chanel Beauty, David Yurman, and Breitling.

These stores are not outposts; they are flagship-caliber locations in the Midwest.

Luxury goes local

Luxury brands today emphasize omni-channel engagement, blending in-store, online, and mobile experiences to create a seamless shopping journey. Stores are central to this approach, serving as spaces where sales associates cultivate meaningful, ongoing relationships with high-value customers.

Personal appointments, bespoke services, and immersive environments help brands differentiate themselves and strengthen loyalty — giving shoppers a reason to return again and again. Markets such as Columbus allow luxury retailers to deliver these experiences locally, providing convenience without compromising the premium service and attention that define the luxury market.

From an investor perspective, this strategy aligns with the evolution of retail real estate. Quality of place, experiential value, and demographic alignment are increasingly essential criteria. Attributes once defining ultra-high-rent districts now appear in carefully chosen secondary markets.

The future luxury landscape

Luxury retail is not abandoning Fifth Avenue or Rodeo Drive, which will remain global flagships. What is changing, however, is the competitive landscape beneath them. The broader mall sector is splitting, with top-tier destinations capturing a disproportionate share of sales and asset value while weaker properties struggle to remain relevant. 

Amid that environment, luxury brands are concentrating in markets like Columbus where they have the ability to continually reinvest in the customer experience by leveraging data-driven insights and cultivating personalized client relationships to deliver immersive and differentiated retail environments.

The implication is clear. Luxury’s future will not be defined solely by legacy prestige, but by performance, adaptability, and the strength of the surrounding ecosystem. The winning locations will be those that combine affluent consumers, experiential retail, and sustained capital investment — regardless of zip code.

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