- Moncler has opened in the former FAO Schwarz space on Fifth Avenue, joining Dior, Louis Vuitton and Prada in a wave of flagship upgrades aimed at American shoppers.
- Americans are now the world’s biggest luxury spenders, yet Bernstein estimates the Americas generate nearly 30% of industry sales but only about a fifth of most European houses’ reported revenue.
- US spending fell in the three months to September, so brands are leaning on the wealthiest customers and cheaper entry products while Fifth Avenue availability stays tight.
Moncler’s Fifth Avenue flagship in the former FAO Schwarz space marks luxury’s “American decade,” Bloomberg Opinion columnist Andrea Felsted writes.
Felsted says American shoppers now outspend everyone else on luxury. Citigroup card data shows US spending slipped in the third quarter, the first quarterly decline of 2026.
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Fifth Avenue Gets a Makeover
The Italian outerwear company has filled the old toy store with giant display cases styled like ski chalets and evergreens that zig-zag through the main gallery.
Down the street, LVMH has enlarged and refreshed Dior’s flagship, with a remodeled Louis Vuitton store due soon, and Prada has a renovation underway.
Felsted traces the shift through three eras. European houses once courted Japanese shoppers, then Chinese travelers before Covid. Now a long stock market run has swelled wealthy Americans‘ balance sheets.
By the Numbers
Bernstein’s Luca Solca puts the Americas at nearly 30% of 2025 luxury sales, yet roughly a fifth of what most European houses book as revenue. Goldman Sachs analyst Erwan Rambourg still calls the US an “emerging market” for luxury.
Brands are following the money beyond Los Angeles and Miami, with new stores in Atlanta, Phoenix and Charlotte. Moncler added Austin, Dallas and Oakbrook, Illinois, plus a second Aspen store. Hermes opened in Williamsburg, Brooklyn, days after Moncler’s Fifth Avenue debut.
Space Is Tight
Prime corridors have little room to give. JLL’s third-quarter report, which we covered in October, put Manhattan retail availability at 11.4%, the lowest since JLL began tracking in 2017, with asking rents averaging $605 per square foot.
Bank branches have been taking space off the market, which adds competition for the same storefronts luxury brands want.
Courting the Wealthy and the Young
With spending softening, Felsted calls it wise to focus on the wealthiest shoppers, who are least exposed to inflation. Moncler’s store has private shopping spaces, an upstairs bar, a large suite for groups and a made-to-measure salon.
The core range runs EUR 1,500 to EUR 2,500 ($1,680 to $2,800). A new EUR 1,250 Cervino jacket targets younger shoppers.
Why It Matters
For Fifth Avenue landlords, luxury demand is still strong enough to justify big flagship investments. But the column points to real risk: even American wealth may not offset slowing Chinese demand and demonstrations in Europe that hurt tourism.
What’s Next
Felsted says US spending may pick up now that the midterms are over, much as it did following the 2024 election. New holiday campaigns from luxury brands are landing now, so the next few months will show whether the slowdown was a pause.
