IADS Exclusive: Paris’ Champs-Elysées, luxury, sportswear and the Olympics, a case for opportunistic retail

Paris’ Champs-Élysées have a rich history. Originally designed in 1667 by Le Nôtre, the famous French architect created a long tree-lined promenade starting from the Tuileries Palace. In the 20th century, the avenue experienced spectacular growth with the arrival of major stores, cinemas, and famous cafés such as Fouquet's. These establishments attracted an international clientele, earning the Champs-Élysées the reputation of "the most beautiful avenue in the world” where something was always happening. Luxury brands opened stores, transforming the avenue into a high-end shopping area./nbsp]
However, starting in the 1980s, the avenue began to experience a period of decline, luxury brands gradually gave way to more mainstream stores such as McDonald's, Zara and H&M, leading to a gradual dissatisfaction among Parisians. Between 1990 and the 2000s, many shopping arcades, once the pride of the Champs-Élysées, were deserted. The avenue lost its lustre, failing to attract the sophisticated clientele it once did. Allowing easy access from the suburbs, the opening of the regional train also changed the avenue's visitor profile, reinforcing its mass consumption image. More recently, the avenue faced years of "yellow jackets" protests, strikes and the pandemic, which drove away potential customers. 
But the renewed appeal of the most famous avenue in the world is confirmed: there is a Champs-Elysées Renaissance. 
Welcoming 300,000 pedestrians on busy days, the avenue is transforming into a prime showcase for brands. As measured by Knight Frank, the avenue recorded 46 brand movements in 2022 and 2023, especially in the sports and luxury sectors: 46% were new store openings, and 54% were relocations, expansions, or renovations. The movements recorded over the past 2 years involved 24% luxury brands and 17% sportswear brands. 
Who will win the attention of tourists coming to the Olympics? Considering their investments, luxury and sport-style brands seem best positioned. Moreover, in the long run, who will win the 110 million people passing through the Champs-Élysées each year? Will the Olympics bring additional business? 

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