At major international art fairs like Frieze London and Art Basel Paris, hundreds of galleries still attract thousands of collectors, curators, and enthusiasts. Yet, beneath this spectacle lies an uncomfortable truth — many traditional art galleries are struggling to survive amid economic pressures, rising costs, and competition from the digital world.
Recent closures and downsizing highlight this trend. Sean Kelly’s Los Angeles branch will no longer hold exhibitions, Almine Rech has significantly reduced its London space, and San Francisco’s Altman Siegel is shutting down after 16 years. For an industry once defined by expansion and glamour, contraction now appears to be the new reality.
A Shifting Model — “Rumours of Death Are Exaggerated”
Despite the wave of retrenchment, some leaders argue that reports of the art gallery’s demise are premature. “Rumours of the art gallery’s death are greatly exaggerated,” says Alex Logsdail, chief executive of the Lisson Gallery, which operates spaces from Los Angeles to Shanghai.
Logsdail emphasizes that galleries remain essential cultural institutions. “They are open all year round, for free — and the gallery is still the best place to experience the full vision of what an artist is trying to express.” However, he acknowledges the financial realities that are reshaping the business. After a decade of expansion, Lisson has adopted what he calls a “more restrained” strategy. “We’re not interested in opening more spaces. If we open one, another must close — one in, one out.”
From Expansion to Retrenchment
Economic volatility, pandemic aftershocks, and escalating costs have forced galleries to rethink their operations. “We’ve gone through an extraordinary amount of economic turbulence,” Logsdail says. “There is now a natural correction.”
At its peak, Lisson Gallery participated in up to 16 art fairs a year. Now, the goal is fewer than ten. “We cannot be everywhere and still maintain quality,” Logsdail explains. “It’s about being more targeted and returning to a slower, more considered way of doing things.”
The gallery recently appointed Gary Waterston, formerly of Pace and Gagosian, as managing director to professionalize operations while maintaining what Logsdail calls an “artist-first ethos.” Waterston says his boss is determined to balance modernization with tradition: “He wants to protect the culture that made the gallery successful.”
Reinventing the Art Experience
In an industry obsessed with attracting younger collectors, Logsdail sees a different challenge: re-engaging established audiences. “People are bored of being fed what they already know,” he says. Lisson’s most successful recent exhibitions, such as Hugh Hayden’s provocative “Toilet Stall” installations in Los Angeles, have invited slower, more reflective viewing experiences — a counterpoint to fast-paced, social media-driven consumption.
Similarly, Logsdail stresses realism when pricing art. “We’re having very honest conversations with artists about what’s sensible for their long-term careers. Even great artists can be undone by short-sighted decisions.”
A New Generation of Gallerists Adapts
Emerging gallerists are taking cues from these lessons — but with more flexible models. Oscar Sunderland, co-founder of the nomadic Oscar Chloe Directory (OCD), says the traditional gallery format is increasingly unsustainable for newcomers. “The gallery model isn’t dead,” he says, “but for young gallerists today, a permanent space would drown us. The pop-up model works better — we follow the buzz.”
During Frieze Week, OCD hosted a temporary show in London’s Soho featuring Mexican artist Leopoldo Goût. Sunderland explains the appeal: “People, including artists, want excitement. Without a huge budget, one location just isn’t enough.”
Charlie Pannell, founder of St.Art gallery, also embraces mobility. To make art more accessible, he took his exhibitions to the streets — literally. During Frieze Week, St.Art displayed sculptures and installations from a “mini-gallery” mounted on a bicycle. “Even free galleries can feel intimidating,” Pannell says. “Why not create something that brings the fun back to art?”
Technology: A Tool, Not a Threat
As virtual platforms and digital art continue to reshape the market, many wonder if technology will replace the gallery altogether. Both Logsdail and Waterston disagree. “The gallery experience itself is part of the appeal,” says Waterston. “We are already part of the experience economy.”
Logsdail welcomes innovation but draws a line: “We shouldn’t fear progress — you can’t stop it. But you won’t see me dancing on TikTok.”
A Transformation, Not an Extinction
The traditional gallery model may be under pressure, but it is far from obsolete. The industry is undergoing a transformation — from expansive empires to curated, nimble operations focused on sustainability, experimentation, and deeper engagement.
In the words of Logsdail, the goal is not survival for its own sake but evolution: “It’s about slowing down, focusing on the art itself, and remembering why galleries exist in the first place.”
