Dolce & Gabbana SRL, Louis Vuitton at LVMH and Gucci at Kering SA will pinpoint new luxury retail developments to South Africa’s V&A waterfront.
Cape Town’s V&A is a new wing dedicated to approximately 4,000 square meters (43,056 square feet), tripling the size of space available to luxury retailers, its CEO David Green said in an interview. That’s amid growing demand for luxury goods in South Africa’s second-largest city.
Representatives from Dolce & Gabbana and Louis Vuitton did not respond to requests for comment, and a Gucci spokesman declined to comment.
The companies already have stores in V&A, but these are spread out among other retailers. The new development will allow the mall’s luxury retailer under one roof, double the store space for three brands, Green said.
Overall, with the new R207 million ($11.4 million) development, six new brands, including Versace from Capri Holdings Ltd., will add existing products such as Burberry Group PLC and Maxhosa Africa.
Africa has emerged as a fast-growing luxury market driven by strong economic growth, the growing middle class, increased consumer spending and an increasing billionaire population. Production in sub-Saharan regions has probably grown by 4.2% this year, making it the third fastest emerging and developing market after India and China, according to International Monetary Fund estimates.
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South Africa, the richest country on the continent, is the most established regional market for designer products. The mall’s luxury brand trade density rose 171% over the five years to June 2024, according to Clur’s Shopping Centre Index, which tracks 4.1 million square meters of major retail space in the country and neighbouring Namibia.
The new development of the V&A will “find the gaps” in the Johannesburg-based luxury arcade known as the Diamond Walk in Sandon City, Green said. The grounds around South Africa’s economic hub are called Africa’s richest square miles, given its concentration of top businesses, valuable individuals and luxurious homes.
Still, South Africa is one of the highest unemployment and inequality rates in the world, only recovering from decades of mo death.
The demand for designer products in Cape Town is driven in part by international tourists, including the migration of wealthy families from other parts of the continent. According to Henley & Partners, Metro surpasses Johannesburg by 2030 and will become Africa’s richest city by 2030.
Construction of the luxury development of the V&A in South Africa’s oldest working port has already faced the backdrop of Table Mountain, but has already begun. It will be open for business from November until the next Easter.
According to Green, V&A was up nearly 17% from the previous year in retail sales of its R1.4 billion V&A registration record in December. He said he sold over R10 billion in 2024 in 2024.
The company is jointly owned by Public Investment Corp., a pension fund manager for government workers, and GrowthPoint Properties Ltd., South Africa’s largest listed real estate company. It also plans to expand R20 billion in the adjacent Granger Bay area and expects to receive permission from Cape Town authorities for development, including reclamation of land from the sea, in the first half of 2025.
By Princesha naidoo
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