Hermes is expanding its footprint beyond traditional luxury hubs by opening stores in affluent suburban and smaller American markets, a shift reflecting changing patterns in wealth and consumer behavior across the United States. The French luxury brand, known for its craftsmanship and high-end leather goods, is increasingly targeting locations such as Short Hills, New Jersey, and Wilmette, Illinois—areas previously overlooked by luxury retailers.

The latest store in Wilmette, which opened in August, is situated in an open-air mall alongside amenities like a pharmacy and a supermarket. This location features a distinct Spanish revival-style facade adorned with dragonfly motifs. The presence of Hermes has attracted other high-end brands like Oscar de la Renta and Thom Browne to the area, reinforcing the mall’s status as an emerging luxury destination.

This strategy marks a departure from the brand’s traditional focus on metropolitan luxury centers such as Manhattan, Beverly Hills, Paris, and Milan. Hermes currently operates 45 locations across the United States, with recent openings in diverse markets including Scottsdale, Arizona, and Princeton, New Jersey. A new store in Manhasset on New York’s Long Island is scheduled to open this month.

Executives within Hermes describe these suburban and smaller city markets as “emerging,” although some acknowledge the term may be misleading given the widespread presence of wealth. According to Lauren Mahady, a senior Hermes executive, data analysis plays a critical role in site selection, incorporating ZIP Code demographics, client distribution, e-commerce behaviors, shopping patterns, and proximity to complementary lifestyle destinations such as popular cafes and restaurants.

The Wilmette store exemplifies a more nuanced approach to location choice. While downtown Chicago, approximately 35 minutes away, already houses a Hermes boutique, executives observed that affluent suburban customers on the city’s North Shore were not regularly visiting that location. The decision to open a store closer to this clientele was guided by the hypothesis that local shoppers would appreciate the convenience, allowing for visits between daily routines and errands.

Physical retail remains central to Hermes’s overall strategy, despite the increasing importance of e-commerce. The company reports annual revenues of about €16 billion (approximately $25.85 billion). Its commitment to a limited number of stores each year reflects a focus on bespoke design; a single Parisian architecture firm oversees the distinctive design of each boutique to ensure no two locations are alike.

By adapting to the evolving distribution of wealth in the United States and catering to consumers in less traditional luxury venues, Hermes aims to sustain growth and maintain its position in the competitive global luxury market.