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Tiffany & Co. reopened its flagship store in NYC after nearly four years of renovations, with the investment in the project being the largest retail investment made by its owner, LVMH. The store accounted for 10% of the company’s global sales before closing in 2019 for renovations. The reopening comes as LVMH continues to prioritize the development of Tiffany’s sales, particularly as the luxury goods market is showing signs of easing from the strong demand seen over the past few months. The executive vice president of products and communications, Alexandre Arnault, has spearheaded Tiffany’s rebranding effort.
Tiffany’s New York flagship store reopens after 4 years of renovations
April 26th Tiffany & Co. opened the doors of its newly renovated store in New York. It has become the centerpiece of a broad brand reboot orchestrated by its owner, the world’s largest group LVMH, according to Reuters.
Wonder Woman actress Gal Gadot officiated at the ribbon-cutting ceremony early in the morning. She was accompanied by Tiffany CEO Anthony Ledroux and Alexandre Arnault, the label’s executive vice president of products and communications, one of five children of LMVH chairman and CEO Bernard Arnault, who hold key positions at the French company.
The executives cut the robin’s egg blue ribbon to applause from the crowd, who poured onto the sidewalk outside the store at the corner of East 57th Street and 5th Avenue.
The nearly four-year overhaul of the historic building, built in the early 1940s and prominently located in midtown Manhattan, began even before Tiffany bought LVMH, Europe’s most valuable company.
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Before closing for renovations in 2019, the store accounted for 10% of Tiffany’s global sales, Ledroux said. And it is likely to remain the company’s most important retail asset, both in terms of sales and as a branding tool.
“This is not a flagship, this is a landmark. The attraction, which has been here for 83 years, is the reconstruction of the century,” Ledro told reporters after the ceremony.
LVMH did not disclose the cost of the renovation. But company executives said it was the group’s largest retail investment, surpassing Dior’s flagship store on Avenue Montaigne in Paris, which opened last year.
Tiffany’s Fifth Avenue branch is key to brand rebirth
And it depends on advancing to a higher market and moving beyond the traditional specialization in engagement rings.
Alexandre Arnault spearheaded the label’s initial relaunch with an ad campaign featuring Beyoncé (wearing the famous Tiffany Yellow Diamond) and Jay-Z.
In terms of products, the brand’s best-selling lines are T-shaped jewelry, the HardWear line, and the recently introduced Lock oval bracelets.
Renewal of the retail network will now be a priority, LeDru said. This is essential if Tiffany is to bridge the gap with Cartier, the world’s largest jewelry brand owned by Richemont(CFR.S).
The investment comes as European labels, including LVMH fashion stars Louis Vuitton and Dior, have seen strong, post-pandemic demand from Americans that has lasted several months but is beginning to show signs of easing.
Last year, LVMH sales in the US grew by 15%. And the US market accounted for 27% of total revenue as buyers ignored rising prices and turbulent markets.
LVMH said that their priority is to develop Tiffany’s sales, while margin growth is likely to come later.
According to HSBC, Tiffany’s sales will be 5.1 billion euros ($5.63 billion) in 2022 and are projected to reach 7.4 billion in 2025.
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