Celebrity Retail a Growing Force

Many celebrities have become savvy businesspeople – and that’s not an act.

The darlings of the screen and social media who have launched retail brands lately combine for 7 billion followers on Instagram alone.

Retail centers, e-commerce sites, and even Las Vegas casinos are taking notice.

Consider that nearly 60% of all celebrity retail brands were founded in the last six years, according to a new JLL report. This growth – of about 5 percent – coincides with the disruption of e-commerce in retail that was building even before the pandemic.

In fact, recognizing the new way to shop and sell, more than one-third (38%) of modern brands launched since 2020.

The greatest appeal is that of Generation Z, who, JLL writes, was born with a phone in their hands.

Generation Z’s purchasing power is growing steadily, with Bain and Company estimating it will rise three times faster than that of other generations, accounting for one-third of the market by as soon as 2030.

As for retail space, JLL reported that celebrity brands (which tend to be in the more expensive CAC categories, like apparel and jewelry) have accounted for opening over 300,000 square feet of space in the last decade.

They are in the malls, and in casino shopping areas, as well, captivating the young and affluent.

Celebrity brands are capitalizing on the Halo effect – when a brand’s online traffic increases in a given market as a result of opening a new physical store there.

JLL reports, similar to their digitally native predecessors, “these brands have overwhelmingly gravitated towards malls when choosing a physical location,” with 76% of brands operating stores in shopping centers versus other retail types.

“The growth of this category could be good for mall performance, as even Class A mall vacancy still hovers above overall retail vacancy in the United States (5.9% vs. 4.2%),” JLL adds.