Luxembourg City is Benelux’s fourth most attractive location for international and national retailers. The city benefits from a broad consumer base and strong retailer demand. Luxembourg City has a central location in the country and is relatively dense: the city contains approximately 20% of the country’s inhabitants on 2% of its territory. More than two-thirds of the city’s inhabitants are foreign, mainly originating from other countries of the European Union. This is a consequence of the presence of a number of European institutions. Luxembourg has, by far, the highest gross domestic product per capita (in purchasing power standards) in the European Union, as well as the highest actual individual consumption. Luxembourg’s high spending power makes it attractive for luxury and premium retailers.
The main shopping zone in the city centre is along Grand- Rue and its adjoining streets, including Avenue de la Porte- Neuve, Rue des Capucins and Place d’Armes. A large variety of mainstream and premium brands are located in the area, with drivers such as H&M, Zara, Massimo Dutti, Jack & Jones and Tommy Hilfiger. The city centre also houses a luxury cluster on Rue Philippe II, where haute couture houses such as Cartier, Chanel and newcomer Dior are located, and which will extend in the future towards the soon-to-open Royal-Hamilius shopping centre. The prime retail zone of the city is located within walking distance of the old city centre and close to office areas. This prime catchment area of the country, and the wider region, includes a small luxury cluster that may extend in the future towards the Royal-Hamilius project. This is part of the international expansion programme of the Hudson‘s Bay Company, a Canadian retail business group that recently acquired Galeria Inno. Another prime retail zone near the central train station boasts high footfall and is where many international mainstream brands can be found. The central commercial zone will experience a wave of expansion with the opening of two large shopping centres, the first of which will be located within the Royal-Hamilius development. However, the COVID-19 crisis has delayed the delivery of the Royal-Hamilius shopping centre. The second mall is the Cloche d'Or shopping centre (75,000 m²) in the south of the city, which will offer 120 retail units as well as an Auchan hypermarket.Four companies are currently controlling the large-scale distribution market: Cactus, a Luxembourger company, the Louis Delhaise group, the second largest actor, the Monopol group and the Auchan group. This sector profits from the high consumer spending of households, which is among the highest in the world ( per capita consumer spending is for example 70% higher than that of their Belgian and Dutch neighbors).
Luxembourg: Buying and Selling
