Two-Minute Tour: Paris

The Numbers

Paris accounts for more than a quarter of France’s $2.66 trillion GDP and is the world’s most popular tourism destination, though the recession has negatively affected its $13.2 billion-a-year hotel and restaurant business. Paris was ranked No. 4 in Foreign Policy Magazine’s 2010 ranking of the world’s top global cities, a representation of the city’s influence on and integration with global markets, culture and innovation. The French government in 2006 undertook a renovation of La Défense, Europe’s largest business district, focusing on sustainable development with architecturally innovative new office buildings and residential space.

The Pulse

The economic crisis has negatively affected the Paris retail sector, according to Elizabeth Marq, a merchandising trends consultant based in Paris. While many retailers have cut back on marketing and merchandising budgets and closed their unprofitable locations, others have responded by reinvesting in their flagships and becoming more creative with hybrid concepts. Brands such as Hermès, Louis Vuitton and Guerlain are constantly reinventing their stores, Marq says, while café/retail hybrids are blurring the line between food, retail and gathering spaces. International brands are adding their own innovative concepts to the Paris retail scene. Among the most notable recent openings is Apple’s Opera Store, which dramatically departs from the brand’s traditional retail design to incorporate the architecture of its restored bank building across from the famous Opéra de Paris.

The Hotspots

The Avenue des Champs-Élysées, the third most expensive retail location in the world at $1009 per square foot, is experiencing a newfound appreciation from retailers who view its premium location and worldwide recognition as strengths for their brands, according to a recent Women’s Wear Daily Paris Show Preview. Among the recent additions to the district are Spanish clothier Massimo Dutti, Swiss watch brand Tissot and flagships for Tommy Hilfiger and H&M. In its report, WWD described concept store Merci as being part of the recent revitalization of the artsy Marais district and the opening of a Ralph Lauren flagship in Saint-Germain-des-Prés boosting demand for commercial space in the Left Bank district. The recently renovated Printemps department store was recently joined in the Boulevard Haussmann by new Uniqlo and Desigual flagships.

The Opportunities/Obstacles

The recent depreciation of the Euro has increased demand for French products, and retailers have continued moving into Paris despite the recession. “British fashion designers, in particular, have continued their invasion – Stella McCartney, Jimmy Choo and All Saints have all set up shop in recent months,” according to a recent retail report by Time Out Paris. Marq says outside retailers should be aware that the shopping culture in Paris is different due to the history and heritage of established brands and that the smaller stores demand efficiency and creativity.