How luxury labels use pop-up stores to epitomise prestige, revitalise sales

Following the pandemic, luxury labels have opened a huge number of pop-up stores, especially focusing on beach clubs, hotels and seaside resorts as venues for this new type of temporary shop. The phenomenon accelerated sharply this summer, with luxury labels reaching new destinations such as Greece and Turkey, to capture a rich clientèle more inclined to spend when on holiday. A study by luxury market data specialist Luxurynsight, based on its LY Retail platform, has analysed how pop-up stores enable luxury labels to boost their commercial performance, while remaining flexible and testing new markets.

 
In general, Luxurynsight’s survey of temporary store openings in the first half of the year highlighted how the labels’ choice of location has changed. Luxury labels are increasingly focusing on wealthy local consumers, in markets where they used to have less of a presence, such as a country’s secondary and emerging cities. For example, New York was a less popular pop-up store destination than the chic ski resort of Aspen, Colorado. In France, Aix-en-Provence emerged as a contender alongside Paris, Nice and Cannes, while in South Korea, Daegu was preferred to Seoul.
 
As for summer resorts, Bodrum, a luxury seaside resort in south-west Turkey, on the Aegean Sea, has become the new ‘it’ destination. This summer, the Mandarin Oriental hotel in Bodrum hosted more than 14 luxury labels, including Chanel, Cartier, and Van Cleef & Arpels, while Dior, Loro Piana and Golden Goose opened at Palmarina Marina in nearby Yalıkavak. With its berths for mega yachts and its nightlife, Bodrum attracts many celebrities, but also and especially the so-called ultra-high net worth individuals (UHNWI), the world’s richest consumers. Bulgari is planning to open one of its hotels there in 2026. 
  

Themed pop-up stores

Another interesting feature of the many pop-up stores that opened in major cities earlier this year is that they all focused on a single theme and a specific narrative. This was the case of Gucci’s Ancora stores, themed on the maroon colour that characterised the first collections and campaigns by creative director Sabato De Sarno. For the occasion, Gucci has partnered with high-end coffee brands such as Arabica Coffee in Hong Kong and Grid Coffee in China, opening limited-edition Ancora cafés.
 
Hermès meanwhile played the culture card, with spaces looking like news-stands selling the Le Monde d’Hermès magazine and floral bouquets, blending tradition and an emotional connection. “This approach is aimed at increasing visibility, creating a buzz, and building brand awareness and engagement,” noted Luxurynsight in the study. Burberry put the accent on its new signature colour, Knight Blue, in February, illuminating with blue lighting the entire façade of the Harrods department store in London, which it decorated in a fun camping style for a unique and immersive experience, while also targeting the city’s tourists.

 
Luxury labels went into retail overdrive with summer activations, with Dior leading the pack. In summer, LVMH’s leading label launched no fewer than 37 retail initiatives, with 27 pop-up stores — including 26 in Europe across the entire Mediterranean coast — 6 spas, 3 seasonal stores and a restaurant. Louis Vuitton followed with 14 activations, and Giorgio Armani with 13.
 
Dior showcased its Dioriviera summer collection in pop-up stores opened within luxury hotels and beach clubs decked out in the label’s colours, setting up shop for the first time in Astir Marina, south of Athens, and in Puerto Banús, near Marbella, Spain. By introducing local or limited-edition collections matching the décor and visual merchandising of its seasonal stores, Dior amplified the feeling of exclusivity, while connecting it to its customers’ vacation memories.
 
Like Dior, other labels are targeting an affluent clientèle, focusing on prestigious locations, including hotels, beach clubs and restaurants. They are showcasing their collections at exclusive holiday resorts where they create immersive experiences, highlighting both the destination and the brand. This kind of strategic partnership enhances the customer experience in an aspirational environment, said Luxurynsight.
 

Exclusive occasions and venues

Balmain, for example, has staged exclusive styling sessions and bespoke shopping experiences at its pop-up store in the long-established Pridwin seaside hotel complex, not far from New York. Jacquemus took over the La Renaissance restaurant in the heart of Saint-Tropez, and fitted out the Indie Beach club on the Pampelonne beach in nearby Ramatuelle.
 

The strategy of establishing a presence in beach clubs and other iconic holiday resorts is going hand in hand with the opening of seasonal stores, which enable luxury labels to diversify their range and interact with their customers in different ways. Every summer, Prada changes the layout of its store in East Hampton, on the seafront two hours from New York. Gucci meanwhile reopened its seasonal boutique in Saint-Tropez this summer, presenting the Lido collection, an ad hoc range inspired by the resort lifestyle of Italy’s Mediterranean coast.
 
Another example was the temporary store opened in Saint-Tropez by Italian perfume brand Acqua di Parma, which asked French designer Dorothée Meilichzon to devise an unusual layout. She created bright yellow furniture with rounded shapes reproducing the texture of citrus fruits, to give visitors a multi-sensory experience.
 
By focusing on this kind of inspiring, engaging experiences, combining art, multi-sensory elements, fashion and beauty, luxury labels are not only strengthening their relationship with customers, but also turning shopping into an integral part of their holiday pursuits. A strategy that enables labels to boost sales, gain visibility, and test a location for a permanent opening, while better identifying the profile of the destination’s summer visitors as potential loyal customers.