Leading global brands are showing renewed interest in establishing stores in high-end shopping centers in São Paulo, Brazil’s largest consumer market.
Brazil is the country with the fastest-growing number of millionaires, and São Paulo stands as the nation’s epicenter of wealth creation
Luxury brands such as Louis Vuitton and Moncler have announced expansion plans.
Louis Vuitton is setting up shop in Shops Jardins, a commercial center near the prestigious Hotel Fasano.
Simultaneously, Moncler plans to expand its presence at the Shopping JK Iguatemi.
Swedish fashion retailer H&M, known for fast fashion abroad, is in talks to open its first Brazilian store within Multiplan and Allos group malls.
Sources indicate that this brand movement is just the beginning.
The recent appreciation of the Brazilian real against the dollar is being watched closely by international groups when forecasting sales profitability.
A significant factor could be the closure of Western designer stores in Russia due to sanctions related to the conflict with Ukraine.
Brazil could potentially absorb the inventory originally intended for Russian branches.
Currently, luxury mall operators remain discreet about negotiations with global brands. H&M publicly disclosed plans to establish stores in Brazil by 2025.
Allos CEO, Rafael Sales, sees H&M’s announcement as a sign of returning confidence, especially with the Brazilian real’s stabilization.
Armando d’Almeida Neto, CFO of Multiplan, notes heightened interest from global brands in luxury mall spaces, driving the company to consider expansion.
Recent performance reports from mall operators reflect the robustness of Brazil’s luxury market.
Multiplan reported a 95.8% occupancy rate at the end of June, while Iguatemi showed an average occupancy of 92.4%.
The luxury market’s impact is clear, with brands like Balenciaga taking direct control over its Brazilian operations and other big names, like Zara and Gucci, planning new store openings in the country.