LVMH’s Australian revenue grew a remarkable 15 per cent year-on-year between 2019 and 2023, according to IBISWorld, but was trending down last year. Growth also contracted at Chanel, Prada and Richemont, the data shows.

The research firm said while Melbourne and Sydney are popular choices for luxury retailers, rising incomes in Perth are attracting brands such as Gucci, Chanel and Hermes.

Jim Tsagalis, managing director of Perth estate agency Lease Equity, said luxury brands were still jockeying for position in the city’s premium Murray Street.

“Definitely, there’s been a slowdown in sales, which, in turn, has had an impact on luxury retailing and their expansion,” Tsagalis said.

Upmarket French jeweller Cartier opened the doors to its Murray Street store in August after a $5 million revamp of the two-storey, post-gold boom Fauldings Building and is expected to be followed by Fendi.

The new store is wedged between international hotelier Mantra and German fashion house Hugo Boss and is adjacent to luxury brands Tiffany & Co., Louis Vuitton and Chanel, all of which have left King Street strip over the past three years — once regarded Perth’s premier fashion destination.

While most top-tier brands have already set up in the city, and those that haven’t are expecting to soon.

Australian luxury pearl purveyor Paspaley has bought a site, Dior is fitting out a flagship store, and Omega will open its doors next year, Tsagalis said.

Garland & Garland fashion industry advisor Phoebes Garland said shoppers are waiting for discounts and spending less on discretionary items while splashing more on experiences such as travel and concerts.

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“There’s an argument to say that these luxury players have become too accessible. You go into every single major shopping precinct around the world and there’s the same shops everywhere,” she said.

Brian Walker from the Retail Doctor Group said although trade in Sydney’s luxury outlets may have slowed, it was not substantial.

They were still well-supported by tourists and affluent harbour dwellers, he said.

“When the majority of Australia feels the cost-of-living crisis, if you liken that to a cold, well, the luxury market gets a bit of a sniffle, but nothing profound.”

No new luxury leasing deals of note have been signed this year in Melbourne’s Collins Street.

But Cartier, Hermes and Vacheron Constantin have all renewed leases and are in various stages of occupying, expanding and refurbishing their stores, said Ainsworth Property retail specialist Zelman Ainsworth.

“The global trend seems to be adjusting to the rapid expansion, resulting in fewer major deals, although here in the Melbourne CBD, many leasing deals [will] expire in 2026 and 2027, forcing retail groups to re-access their retail networks and plans,” Ainsworth said.

Jostling for the best real estate is also happening in Melbourne.

Chanel paid a thumping $75 million this year to buy the building housing its 10-year-old boutique, where it retails $10,000-plus handbags and shoes.

Across the street, LVMH has plunged $39 million into 145-149 Flinders Lane, a five-level beaux arts-style building, earmarking it for a Dior store.