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*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?*

The Champs-Elysées Renaissance began before the Olympics, with luxury brands paving the way

In 1989, the city hall declared avenue rehabilitation was a major priority, aiming to restore the avenue's original purpose as a promenade. To that end, more than 4 additional hectares of sidewalks were created, with 2 rows of trees forming a pedestrian mall over a kilometre long. Truly enhancing the avenue, the works were completed in 1994 and involved famous international architects such as Norman Foster for the urban furniture.

The opening of the Sephora flagship store on number 72 in 1996, a milestone for the avenue, paved the way for luxury brands. Reopened in October 2023 after 6 months of strategic refurbishment, the store aims to reinvent the flagship experience ahead of the Olympics, especially as Sephora is an official partner of the torch relay. The store now offers a brighter, more open design, with elements inspired by Parisian architecture. Features include a central white marble path, a 90-meter-long glass-illuminated ceiling, and more natural materials like wood and plants. The store layout has been optimised for better navigation and customer experience to cater to a high volume of international visitors, previously recorded at 12 million annually. Louis Vuitton’s flagship store (number 101) opening in 2005 marked the beginning of the avenue’s retail transformation. Other luxury brands followed, reaffirming the Champs-Élysées' status as a luxury avenue: for example, also opened in 2005, Cartier settled close to the Arc de Triomphe, as well as Bulgari opening in 2016.

Closer to the time being, in March 2019, Galeries Lafayette launched a new department store format on number 60, willing to be more of a concept store than a traditional one. The store has 3 floors offering women's and men's fashion and accessories, beauty, restaurants, and a food court. Since then, the store has gained efficiency by rethinking the brand mix, offering a combination of premium, social brands, streetwear, designer and luxury brands. When asked about the Champs-Elysées store in June 2024, CEO Nicolas Houzé acknowledged that the store performance had "not been what we expected" for the store opened "at the worst time in the avenue's history". However, a "significant effort on the product offering, the teams, and the communication allows us to believe in a promising future."

Dior, Moncler, and Saint Laurent soon followed and settled in the highest part of the avenue (numbers 127, 119, and 123), in the surroundings of Louis Vuitton, the avenue’s luxury staple. Dior opened in July 2019, Moncler in December 2020 and Saint Laurent in December 2023. Same as Moncler, Saint Laurent made a bold choice as it is the brand’s largest boutique in the world. Presenting the entire range, including men's and women's fashion, accessories, and jewellery, this four-story store offers a minimalist aesthetic, blending raw textures with luxurious details. The store features art pieces and a VIP area.

At the intersection of luxury and sport-style, Calvin Klein unveiled a new global flagship store on number 44 in June 2024. The opening is part of a long-term strategy rather than solely driven by the Olympics. “We are not opening because of the Olympics. We are opening because it’s the right place to be for our brand. We’re excited by the momentum around the Champs-Élysées”, said global brand president Eva Serrano. The 850-square-meter store includes the brand’s full range of products, including menswear, womenswear, accessories, eyewear, fragrance, underwear, loungewear, swimwear, and sportswear. Ideally positioned in the lower part of the avenue close to Sephora and Lacoste, the flagship aims to solidify Calvin Klein’s positioning as a lifestyle brand focused on aspirational customers.

The Olympics, a booster for the ‘sport-style’ segment on the avenue

Streetwear and sportswear retailers and brands were early contributors to the avenue Renaissance. Taking over Nike, Citadium opened a second Parisian flagship store on Champs Elysées in July 2017 (number 65). Printemps’ streetwear and youth-oriented retailer new store is 1,600-square-meter on 3 levels. The store is supposed to attract 3.5 to 4 million visitors annually, with tourists potentially representing half of the clientele.

Nike House of Innovation opened in July 2020 at number 79. Blending digital and physical immersive experiences, the store was the brand’s first House of Innovation in Europe and the third worldwide, following locations in New York and Shanghai. Spanning 2,600 square meters over 4 floors, the flagship store features phygital initiatives such as QR codes on most items allowing quick delivery in your size in a fitting room. The store also offers self-checkout stations: order your item and have it delivered, try it on, buy it via the app, and leave the store. Storytelling is also emphasised, with a memory wall retracing the evolution of the Nike Air sneakers through to 2020, pointing out its progress and innovation.

Opened in June 2022 at number 50, Lacoste Arena, the brand’s 3-storey first global flagship store, emphasises the link between fashion and sport by balancing experiential spaces (exhibition space, customisation, interactive polo carrousel), entertainment corners (photo booth, VR featuring crocodiles) and sales areas. It addresses all types of shoppers: fashion and streetwear fans, sports addicts or consumers looking for sustainability.

In September 2022, Foot Locker changed locations to open its biggest European store at number 36. The store offers a high-level shopping experience, including technology-driven experiences, original artworks and a resting space with sofas. It includes multiple QR codes for customers to scan throughout the store and a large curved LED screen for interactive quizzes and gift giveaways.

Lululemon opened a flagship store at number 38 in December 2022, a crucial step in the brand’s expansion in the French market. The flagship store features spacious fitting rooms and a "shopping suite" area for a more personalised shopping experience, aligning with the company’s omnichannel strategy. Also, the brand has formed local partnerships to organise sports classes at local gym studios.

Clearly focusing on young customer segments, JD Sports opened 1,600 square meters over 2 levels at number 118 in April 2024. Locating the store in the higher part of the avenue is an exception, as counterparts are more settled in the middle and lower parts. Adidas, already present on the avenue, decided to move its flagship store to number 88, a 3-level 3,700 square meter location, making it the largest Adidas store in Europe. Opened in May 2024, the new "Home of Sport" store highlights lifestyle collections, premium collaborations and performance products, including a "run lab" for gait analysis. The store also offers a customisation area and features various artistic collaborations. Adidas plans several marketing activations, including appearances by Zinedine Zidane and other celebrities.

After opening in the Marais, Madeleine and Saint-Germain-des-Prés areas, Salomon has opened a new flagship store on the Champs-Élysées (number 42) in June 2024, aiming to elevate its sport-style positioning. This move aligns with Amer’s strategy to transform Salomon into a lifestyle brand while maintaining its mountain sports heritage. The Champs-Élysées store focuses on Salomon's history and innovative products, aiming to blend performance with sport-style. Salomon's approach aims to cater to both markets without losing authenticity. The brand's footwear category remains central, accounting for 80% of its revenue. Salomon's strategic expansion also includes new brand ambassadors to strengthen its presence in the fashion and culture sectors.

Offering a better customer experience than before, Levi's has relocated its flagship store from number 76 to number 44. The new store, opposite Lacoste and next to Calvin Klein's flagship, spans 540 square meters. This move enhances Levi's visibility, prominently displaying its iconic denim culture from the street. The store has a fully blue aesthetic. A dedicated section honours the history of the 501 model. They attached a sales associate to it, acting as a denim ambassador to share detailed stories about the products. The Tailor Shop, offering customisation and repairs, has been expanded to include a team of 4 dedicated staff members. The store also plans to host events to engage the artistic community. Touch screens are available to assist customers. The fitting rooms have been redesigned to offer more space and better service.

Finally, after an initial success in the Saint-Germain-des-Prés district, On opened at number 65 just 2 weeks before the Olympics. With 1,500 square meters, it is not just a store but a 3-storey shrine dedicated to running and innovation, offering an experience combining performance and design, well-being and personal achievement. Also surfing on the current tennis core trend, On introduced a more complete tennis offer, referencing Roger Federer.

What to expect from the Olympics?

First, the avenue is a magnet again for brands and tourists alike. The commercial vacancy rate on the Champs-Elysées has significantly dropped. Knight Frank said it fell to 3.7%, compared to nearly 10% at the end of 2022. Despite this, rents have not significantly increased, having already peaked before the pandemic. According to a study by Cushman & Wakefield and Mytraffic, the avenue's foot traffic increased by 15% between May 2022 and June 2023 compared to May 2021 to June 2022.

Second, to make the most of the Olympics, local businesses decided they could not wait for the multimillion-euro project planned after the Olympics, turning the area into an “extraordinary garden”. Instead, 180 businesses approved a plan to give the avenue a much-needed makeover to eliminate the ugly terraces. They are now standardised and aligned to ease the flow of pedestrians. Each terrace costs €400,000, showing how businesses are expecting from the Olympics opportunity. The alignment opens up the view between Place de la Concorde and the Arc de Triomphe and allows more of the avenue’s historic facades to be seen.

On the brands’ side, they aim to benefit long-term from the return of foot traffic to the Champs-Elysées. Beginning on 26 July, the Olympics certainly impacted the avenue turnaround. "The Olympics have been a booster, but businesses are not venturing into this market for just 3 weeks of the Olympics. It's a vector for accelerating a development plan; however, the outlook is long-term," explains Antoine Salmon, head of retail at Knight Frank.

Let’s see what the future holds, but tour operators are recording a slight decrease in tourist reservations during the Olympics compared to usual. The decline is small—about 2%—but it disappoints the sector. Similarly, hotels and Airbnb locations are observing a slowdown in reservations. In other words, July is less dynamic due to the Paris 2024 Olympic Games. Tourists are cautious and avoid France, especially Paris: they fear being unable to move freely, access tourist sites, or be hindered by security measures. Additionally, the threat of terrorism, to which Asian and American tourists are sensitive, is a concern. According to estimates from the Paris tourist office, 60% of the Olympics’ tourism revenue comes from foreign visitors. Nicolas Houzé is also cautious and estimates the Olympics are "an extraordinary showcase for the city of Paris" but will complicate accessibility to the city centre. The group has anticipated a "decline in activity of about 5 to 10% over the two summer months," which they hope to recover afterwards. "This happened to our English counterparts after the London Games," he explained.

Recent openings are momentum in the transformation of the Champs-Élysées, merging luxury with sports to draw in a varied clientele. Sportswear and brands specialised in ‘sport style’ have widely settled on the avenue. With a robust, attractive and concentrated zone in the middle and lower parts of the avenue (on both sides of the avenue, from 79 with Nike to 36 with Foot Locker), these brands are well positioned and prepared for the Olympics. Also represented, luxury brands have the power to attract tourists. Champs-Elysées has always been a place for superlatives as many retailers position their largest flagship stores. Results will be measured in the long run, as the Olympics are expected to disappoint the retail sector. The Olympic's impact will be measured over the years, acting on the overall appeal of Paris. The overall economic impact of the Olympics in the Île-de-France region (Paris and suburbs) is estimated at between €6.7 and €11.1 billion over a 17-year period (2018-2034). Despite the 16 million visitors expected, this does not give any indication of the profitability of the event itself.

Credits: IADS (Christine Montard)