High-end retailLuxury brands reshape Rue Philippe II in Luxembourg City

Ryck Thill
adapted for RTL Today
Rising purchasing power has turned Rue Philippe II into Luxembourg City's luxury shopping hub, attracting major international brands while sparking debate about how to balance high-end retail with a diverse mix of shops.
© RTL

Rue Philippe II has become synonymous with luxury, with almost all major French and Italian designers now represented there. According to Mireille Rahmé-Bley, president of the Luxembourg City Business Association (UCVL), the shopping street has changed noticeably in recent years, a development she views largely positively. She said the presence of these businesses is welcome because they attract a specific clientele and bring a premium profile that draws many visitors to the area.

That transformation began around two decades ago, recalled Robert Goeres, president of the Luxembourg Retail Federation (LFR) and a retailer specialising in Swiss watches from prestigious brands. He explained that when his business first moved into Rue Philippe II in 2006, only a handful of shops were involved. He said that through joint events and collaboration between neighbouring retailers, momentum gradually built, eventually catching the attention of international brands that recognised the street’s growing appeal and that decided to join in.

Goeres remains confident in Luxembourg City’s potential. Last year alone, he completed three major projects: opening a new watch workshop, launching a new boutique, and fully renovating another store. Ultimately, he said, it is the customers who decide whether these offerings succeed, customers who now come not only from Luxembourg, but from across the wider Greater Region.

Luxembourg has long set itself the goal of becoming the shopping hub of the Greater Region, and Goeres believes Luxembourg City is well on its way. He noted that this success inevitably sparks a certain degree of “jealousy” among neighbouring cities such as Metz, Nancy, Trier, and even Saarbrücken or Saarlouis, which would gladly like to replicate that kind of retail attractiveness.

Rahmé-Bley acknowledged that rents on Rue Philippe II are inevitably very high, which naturally favours luxury brands. However, she welcomed Luxembourg City’s recent initiative to promote pop-up shops as a way of restoring balance. In her view, what ultimately makes a city attractive to shoppers is the right mix: luxury boutiques need to coexist with mid-range and more affordable chains to create a diverse and vibrant retail landscape.

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