Investing in Excellence: What Luxury Retail Renovation Really Costs

One of the most frequent questions we receive from brand directors and retail managers is: "What should we budget for a store renovation?" The answer depends on scope, location, materials, and timeline, but after delivering hundreds of projects worldwide, we can share the ranges that consistently hold true.

Cost Categories and Ranges

Design and Planning (8-15% of total budget). This covers concept development, 3D visualization, material specification, construction documentation, and project management. Investing in thorough design planning prevents costly change orders during construction. A well-documented design package typically saves 15-20% in construction costs by eliminating ambiguity.

Construction and Build-Out ($2,500-$6,000 per m²). This is the largest cost category and varies significantly by market. New York and London sit at the high end ($4,500-$6,000/m²), while secondary markets may fall in the $2,500-$3,500/m² range. These figures include demolition, structural work, MEP (mechanical, electrical, plumbing), finishes, and millwork. Premium materials like natural stone and custom metalwork can push costs toward the upper range.

Display Fixtures and Furniture ($800-$2,500 per linear meter). Custom vitrines with integrated lighting, security systems, and climate control represent a significant investment. However, they are among the highest-ROI elements in a luxury store, directly impacting how products are perceived and sold.

Timeline and Budget Planning

A typical luxury store renovation follows a 16-24 week timeline: 4-6 weeks for design, 2-3 weeks for permitting, and 10-15 weeks for construction. Rush timelines are possible but carry a 15-25% premium. We recommend engaging a design partner at least 6 months before the target opening date to allow adequate time for material procurement, especially for natural stone and custom metalwork that may have 8-12 week lead times.