On Wednesday 26 April, Tiffany & Co. unveiled its recently restored New York City flagship the focal point of a wide brand reset planned by its owner the largest luxury firm in the world, LVMH.
Gal Gadot the star of the “Wonder Woman” movie presided over the early-morning ribbon-cutting event alongside Tiffany CEO Anthony Ledru and Alexandre Arnault, the brand’s executive vice president of product and communications. Alexandre Arnault is one of LMVH chair and CEO Bernard Arnault’s five children, who hold important positions within the French company.
The crowd that had gathered outside the store at the intersection of East 57th Street and Fifth Avenue applauded as the executives trimmed the ribbon in the brand’s signature Robin’s egg blue.
Before Tiffany was acquired by LVMH, Europe’s most valuable company, the nearly four-year renovation of the iconic building, which was constructed in the early 1940s and anchors a prominent stretch of midtown Manhattan real estate, began.
Before it closed for renovations in 2019, the shop represented 10% of Tiffany’s global sales and will probably continue to be the brand’s most significant retail location in terms of sales as well as a vehicle for projecting its image, according to Reuters spokesperson.
“It’s not a flagship, it’s a landmark — a landmark that has been here for 83 years, it’s the renovation of the century,” Ledru said to reporters during the ceremony while standing in the glass-enclosed penthouse on the 10th level, which boasts a view of Central Park.
The cost of the renovations was kept a secret by LVMH, although executives claimed that it far surpassed Dior’s recently renovated Avenue Montaigne flagship in Paris as the company’s largest retail expenditure.
The resurgence of Tiffany’s brand depends on going upscale and away from the company’s traditional focus on engagement rings, and its Fifth Avenue location is crucial.
The label’s original reset was led by Alexandre Arnault, who used Jay-Z and Beyonce in an ad campaign while she wore the infamous yellow Tiffany diamond. The T-shaped jewelry, the hefty HardWear line, and the more recently launched oval-shaped Lock bracelets are some of the label’s best-selling product categories.
According to Ledru, the focus will now be on updating the brand’s retail network, which is crucial for Tiffany to catch up to Cartier, Richemont’s (CFR.S) largest jewelry brand.
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The investment was made at a time when European fashion houses, including LVMH’s marquee brands Louis Vuitton and Dior, reported robust post-pandemic demand from Americans that lasted for months but is now beginning to ease away.
The U.S. market contributed 27% of LVMH’s total revenue last year, with sales up 15% as consumers ignored rising prices and volatile markets.
In line with its strategy for its Italian jewelry brand Bulgari, LVMH officials have stated that they emphasize growing Tiffany’s sales while profit improvement would probably start to materialize at a later stage.
Tiffany’s sales totaled 5.1 billion euros ($5.63 billion) in 2022, and HSBC projects the number will rise to 7.4 billion in 2025.
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