Since the concept of the flagship store format was first introduced to retailing in the 1970s, both its form and function have evolved considerably. The highest concentration of flagships can be seen in the luxury fashion market. This paper aims first to define the flagship concept in terms of its key characteristics, and second to outline the academic and industry developments, thereby charting its evolution.
Research was undertaken qualitatively due to the exploratory theory building nature of the subject area and the absence of accepted theoretical frameworks. This took the form of non participant observation and in‐depth interviews with brand representatives within seven major fashion capitals.
The research identifies essential elements of the luxury store format: its scale and size which usually exceeds functional need; it is derived and built on the twin features of exclusivity and uniqueness; it seeks to offer the customer a justification for their visit. The format evolves and adapts to find new ways of generating and communicating differentiation.
The findings provide direction for future research in the area, in particular, an opportunity to investigate how luxury flagship stores adapt in order to accommodate market conditions.
The paper delineates the characteristics of the luxury flagship store format and identifies a new characteristic of this format.
