Luxury Briefing: Miami’s Bal Harbour Shops bets on privacy, experience as department stores stumble

In October, Saks Global, the parent of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, reported an 11% revenue drop and a $288 million loss in the second quarter, hit by inventory shortages, rising costs and nearly $5 billion in debt. The company has consolidated operations, cut jobs and delayed vendor payments, even as its concession business shows signs of resilience.

Meanwhile, one of Saks’s most iconic landlords is expanding. Bal Harbour Shops, owned by the Whitman family for the last six decades, is adding 200,000 square feet of new retail. The Miami luxury landmark will also introduce a hotel, residences and a private members’ club. It’s a move that aligns with the evolution of the world’s top luxury destinations as shoppers look to experiential retail.

“There’s been talk about the death of in-person retail for as long as I’ve been alive,” said Matthew Whitman Lazenby, CEO of Whitman Family Development in an interview. “First it was catalogs, then it was the internet, then Amazon. But when it comes to luxury, it’s such an experiential product. There has to be some magic to it.”

That “magic,” he said, comes from attention to detail. “Our DNA is rooted in those sensory details, like the landscaping, the sound of moving water, how the valet experience feels when you arrive,” said Lazenby. “All of that puts people at ease. Luxury is about how people feel when they’re here, not just what they buy. Even something as simple as how the valet remembers you as he hands you your keys when you leave, that’s part of [the experience].”

Bal Harbour Shops remains one of the world’s most productive luxury retail centers, generating an estimated $2,000–$3,000 in annual sales per square foot, far above the U.S. mall average of around $325. The open-air destination attracts about 1 million cars annually, with roughly 80% of its shoppers coming from outside Miami. The location doesn’t track individual shoppers or sales data, but Lazenby said its jewelry stores, in particular, do very well. Dining, alone, brings in close to $70 million a year.

Bal Harbour’s next phase reflects a broader global trend toward private, high-touch experiences for top-spending clients. In Glossy’s State & Future of Luxury analysis from 2023, leading executives identified the rise of intimate, invite-only environments as a key driver of growth. Brands like Gucci, Chanel and Brunello Cucinelli have since accelerated investments in private shopping salons and membership-style spaces, formats that now define the luxury playbook.

The logic is clear: The top 1% of luxury shoppers now drive a disproportionate share of revenue, and they expect access and personalization, not foot traffic. These clients are increasingly drawn to retail environments that blend shopping, dining and culture, experiences that go beyond the transaction.

Bal Harbour’s forthcoming private club and hotel fit squarely into that space. Launch dates have not yet been announced. “My grandfather always envisioned Bal Harbour Shops as a town center,” said Lazenby. “Those uses — hotel, residential, social — are all complementary. They create that 24-hour experience we’re moving toward.”

He said the club will allow stores to engage with their clients in new ways beyond their boutiques. “It’s not about exclusivity,” Lazenby said. “It’s about deepening relationships with people who already love being here. The stores want opportunities to connect with their best customers in a more personal setting, and we can make that happen.”

Recent openings like Kering’s Salon Privé at 5 Rue Saint-Honoré and Casa Cucinelli’s private homes in Milan and New York reflect luxury brands’ investment in intimacy as a differentiator.

Leasing for Bal Harbour’s expansion has been swift. Bottega Veneta, The Webster and Zegna are moving into larger stores, while new arrivals like Toteme and L’Agence are joining for the first time. According to Bal Harbour data, the center’s customer base continues to grow alongside the city’s status as a year-round luxury hub. According to real estate company Faccin Miami’s 2025 Ultra-Luxury Market Report, Miami’s ultra-luxury home sales, meaning properties trading above $3,000 per square foot, rose 115% year-over-year, underscoring how an influx of high-net-worth residents is expanding the city’s base of luxury brand customers.

“Being privately owned allows us to make decisions for the long term,” Lazenby said. “There are things we could do to maximize quarterly earnings, but we wouldn’t, because it would be at the expense of generational value.”

In a challenged retail landscape, Bal Harbour is betting on something slower and harder to copy: physical experience, emotional connection and the human side of luxury. “We’re not chasing trends,” said Lazenby. “Our mission has always been to create a place that matters to our customers, somewhere that makes them feel good. That’s something you can’t replicate online.”

Earnings Review: Coach powers Tapestry’s record quarter

Tapestry’s fiscal 2026 is off to a strong start, largely thanks to Coach. In the first quarter, reported on November 6, the brand delivered 21% revenue growth, contributing to Tapestry’s 16% overall increase and record earnings per share. “It was the best first quarter we’ve had in 20 years,” said Coach CEO and brand president Todd Kahn during an interview following the results. “We’re just hitting our stride.”

North America led with 26% growth, followed by 21% in China and 39% in Europe. The performance, Kahn said, reflects Coach’s “expressive luxury” positioning and tight focus on Gen Z. The brand gained 1.7 million new customers in the quarter, driven by campaigns centered on confidence and self-expression. “Our purpose-led storytelling resonates,” Kahn said. “It’s about courage and confidence, not just beautiful bags.”

Coach’s momentum also came from key product families like Tabby, New York and Brooklyn, which continue to attract younger shoppers. Average unit retail grew by the mid-teens, supported by both higher price points and unit growth. “We’re achieving this incredible top-line growth at some of our best margins in history,” Kahn said on the earnings call.

Tariffs were a headwind, with Tapestry CFO Scott Roe citing a $170 million impact for the year, but Coach managed to maintain margin strength through its diversified supply chain. “We make very little in China,” Kahn said. “We’re not raising prices just because of tariffs. We take a holistic view.”

Experiential retail continues to play a key role in customer engagement. Coach opened additional “Coach Coffee Shops” in North America and Asia, offering localized experiences that encourage longer dwell times. “Gen Z loves to shop in the real world,” Kahn said. “Those spaces are where the connection happens.”

Footwear and accessories are also fueling growth, particularly the brand’s Soho sneaker and expanding line of charms and straps. Each new product builds on what Kahn calls the “five Ps” of success: product, people, place, promotion and price. “Our people know how to engage customers globally,” he said. “We’re investing in the future.”

Tapestry CEO Joanne Crevoiserat called Coach’s performance “standout,” noting that the brand’s “unique expressive luxury positioning is resonating around the world.” Tapestry raised its full-year outlook, now expecting 7-8% revenue growth and 50 basis points of operating margin expansion despite tariff pressure.

Kahn remains confident about the road ahead. “We’ve built emotional connections, we’re attracting new generations, and we’re doing it profitably,” he said. “The path to $10 billion is well within sight.”

Earnings

• Ralph Lauren reported a 14% revenue increase for Q2 2026, marking its strongest second quarter since the brand began its elevation strategy eight years ago. Asia led growth, with sales in China up more than 30%, while sales in North America and Europe each rose by double digits. The brand added 1.5 million new DTC customers, mostly women and younger shoppers. CEO Patrice Louvet highlighted the launch of Ask Ralph, an AI styling assistant built with Microsoft, and continued double-digit growth in handbags led by the Polo ID and Tasha collections. Ralph Lauren’s positioning as an “inclusive luxury lifestyle” brand is helping it hold pricing power even as tariffs and cost pressures rise.
• Zalando made no mention of luxury in its November 6 Q3 earnings, signaling a clear shift away from the premium segment. The company highlighted new partnerships with the German Football Federation, Next, Marks & Spencer, Deichmann, and Netto Marken-Discount, underscoring a focus on lifestyle and B2B growth rather than designer fashion. Its newly acquired platform About You — a younger, trend-driven marketplace for mid-tier brands like Levi’s, Nike, Mango and Calvin Klein — is now fully consolidated, broadening Zalando’s mass-market reach across Europe. Just last year, Zalando executives discussed not pursuing fast fashion and bringing more designer brands onto the platform.
• On November 5, outlet retailer Tanger reported Q3 core funds from operations of $0.60 per share, up 11% year-over-year, driven by 4% same-center net operating income growth and record sales productivity of $475 per square foot. The company added a luxury note to its call, with CEO Stephen Yalof confirming that Marc Jacobs and other high-end labels are expanding into Tanger’s outlet portfolio to reach new mid-tier markets. It’s a signal that accessible luxury continues to migrate toward value-driven retail formats, where brands can capture aspirational shoppers without compromising on volume.

The Lyst Index Q3 2025: Reliability is the new luxury

The latest Lyst Index, tracking the world’s hottest brands and products from July to September, showcases the strength of brand stability and self-assurance. 

“Brands demonstrating clear vision and consistency are winning customer demand,” said Katy Lubin, vp of brand and communications at Lyst in an interview. “We’re seeing that conviction over reinvention is what’s resonating with shoppers right now.”

Saint Laurent tops the ranking for the first time, followed by Miu Miu and Cos, the latter of which leapt four places with a 147% rise in searches. The Row and Coach round out the top five.

The report also highlights three defining trends: the endurance of quiet luxury, the elevation of attainable sophistication through brands like Cos, and the growing skill of labels such as Skims and Coach in turning viral buzz into sustained demand.

Stat of the week

Holiday spending in the U.S. is set to surpass $1 trillion for the first time, according to data today from the National Retail Federation.

Per Elizabeth Lafontaine, director of research at AI analytics platform Placer.ai, “off-price and other value-oriented channels” are continuing to lead as consumers become more discerning. “Traffic has been increasingly concentrated among wealthier shoppers,” she added, noting that aspirational consumers may be holding back until later in the season.

Executive Moves

• Tory Burch has appointed former McKinsey partner Joëlle Grunberg as president of North America, overseeing retail, e-commerce and wholesale operations. She succeeds Christophe de Pous and will report to CEO Pierre-Yves Roussel from the brand’s New York headquarters.
• Skims has named former Levi’s executive Dawn Vitale as its new chief merchandising officer, as the $4 billion brand expands globally and prepares to enter the beauty category.
• French department store company Galeries Lafayette has appointed former Berluti executive Harold Israel as director of specialized activities, a new role aimed at driving omnichannel growth, brand development and international expansion under new CEO Arthur Lemoine.

News to know

• Saks Off 5th will close nine of its 79 stores starting in early 2026, including its Manhattan 57th Street location. The move is part of Saks Global’s plan to focus on high-performing stores and enhance the customer experience.
• Reklaim, the secondhand luxury platform specializing in watches and accessories, has launched on Amazon Luxury Stores with a curated selection of pre-owned timepieces and limited-edition capsules. The move marks a major step in Reklaim’s global expansion and its mission to make authenticated luxury more accessible.

Listen in

On this week’s Glossy Podcast, senior fashion reporter Danny Parisi and international reporter Zofia Zwieglinska discuss the shutdown of Gen-Z favorite underwear brand Parade, the new Lululemon-NFL partnership and the major layoffs at companies like Amazon. Later, they’re joined by editor-in-chief Jill Manoff to unpack the evolving denim market, from shifting customer habits to the top brands shaping the category today. Listen here.

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