Luxury’s Dark Mirror: The End of Excess?

The latest figures from Kering, parent company to Gucci, Saint Laurent, and Bottega Veneta, reveal a disturbing trend. In just 18 months, the luxury giant has closed at least 217 stores, with plans for more closures. This is not a story about retail trends or consumer spending habits; it’s a symptom of a deeper issue – the exhaustion of the high-end model.

For years, the luxury sector has been built on exclusivity and scarcity. Bernard Arnault once noted that “luxury goods are the only area in which it is possible to make luxury margins.” However, when exclusivity becomes a zero-sum equation, consumers become increasingly savvy about their spending. They’re no longer willing to pay top dollar for status symbols.

Kering’s numbers tell a stark story: revenue slipped 5% in 2025 and another 3% early this year, despite a robust global economy. Saks Global’s bankruptcy serves as a reminder that no one is immune to shifting consumer behavior. The West has long been enamored with the idea of luxury as an aspirational lifestyle choice. But what happens when the aspirational becomes mundane?

Kering’s strategy involves targeted store closures aimed at strengthening sales density, according to CFO Armelle Poulou. However, this approach raises questions about what exactly “sales density” means in a world where e-commerce and direct-to-consumer sales are on the rise. Is Kering trying to prop up its brick-and-mortar empire or is there something more at play?

The reality is that the luxury sector has been built on an unsustainable model. The cost of maintaining extensive physical stores, combined with pressure to constantly innovate and keep appearances up, has become a weight too heavy to bear. Kering’s struggles serve as a warning sign – even seemingly impervious brands are not immune to change.

As we watch this drama unfold, it’s worth considering what comes next. Will other luxury giants follow suit or try to stem the tide with costly PR campaigns and marketing gimmicks? The writing is on the wall: in a world where consumers prioritize authenticity over excess, the notion of “luxury” must be reexamined.

The store closures are just the beginning. What we’re witnessing is not just a retail downturn but an existential crisis for the luxury industry as a whole. As Kering’s numbers continue to fall, one thing becomes clear: in a world where excess is no longer king, what does it mean to be truly luxurious?