Alexandre Arnault, a son of the world’s wealthiest person, told the world that Tiffany & Co.’s flagship store on New York’s Fifth Avenue is back in business.
(Bloomberg) — Alexandre Arnault, a son of the world’s wealthiest person, told the world that Tiffany & Co.’s flagship store on New York’s Fifth Avenue is back in business.
The second-eldest son of Bernard Arnault, the billionaire founder of Tiffany parent LVMH, welcomed a few select guests and journalists Wednesday for a ribbon-cutting ceremony at the renovated store after a three-year-long closure. The general public will be able to shop there starting April 28.
Prior to LVMH’s acquisition, the location represented about 10% of Tiffany’s sales. The new management is hoping that reliance will decrease amid global expansion plans.
Spread over 10 floors and occupying around 110,000 square feet (10,000 square meters), the flagship underwent a gut renovation by architect Peter Marino, who has worked on other projects with LVMH Moët Hennessy Louis Vuitton SE brands.
“It’s the biggest project for LVMH on the retail side,” Alexandre Arnault, 30, who oversees products and communications at Tiffany, told guests during the opening. “More than a store, it’s really a landmark — it’s an art gallery, it’s an exhibition space, it’s several restaurants, it’s a private club, it’s everything all at once that we’ve put under the same roof.”
Artwork by Jean-Michel Basquiat, Vic Muniz, Daniel Arsham and Julian Schnabel are exhibited throughout the space. Shoppers will be able to take a break at the Blue Box Cafe, overseen by celebrity chef Daniel Boulud.
Even more than before, the store will cater to ultra-wealthy clients, with a private, dedicated space on the 10th floor where they’ll be able to shop in what feels like an apartment overlooking Central Park. The two most expensive jewelry pieces initially on sale at the store are a 106-carat colorless diamond and an 80-carat flawless Empire diamond, both sourced in Botswana, said Victoria Reynolds, the chief gemologist. Their prices are upon request but are well into the millions of dollars, she added.
While Tiffany declined to disclose the exact price tag of the refurbishment, Chief Executive Officer Anthony Ledru told Bloomberg in an interview last week that the refit cost hundreds of millions of dollars but stayed below $1 billion. It’s the biggest investment LVMH has put into a single store. LVMH’s acquisition of Tiffany, which was completed more than two years ago and cost about $16 billion, is the largest in the luxury industry.
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“LVMH has clearly risen the bar in terms of real estate and store investment,” Aurélie Husson-Dumoutier, an analyst at HSBC, said ahead of Wednesday’s inauguration.
Demand for high-end goods is slowing in the US, LVMH said earlier this month when reporting first-quarter sales. But LVMH typically invests in brands for the long term, Husson-Dumoutier added. HSBC estimates the personal-luxury-goods market will grow 15% this year, but the US should expand less, around 7%.
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Under LVMH’s ownership, Tiffany’s revenue has gained and the brand has become more profitable, according to HSBC estimates; LVMH doesn’t disclose financial performance for its individual labels. The company has revitalized the brand in part by making sure it appeals to a wider group of shoppers, with splashy ad campaigns including one featuring Beyoncé and Jay-Z.
The Tiffany brand before LVMH acquired it was “tired, staid, conservative and dusty,” said Milton Pedraza, head of the Luxury Institute, a consulting firm. “Then, here come the Arnaults.” They’ve elevated an “iconic American brand,” he said.
On Wednesday at the opening, Anna Wintour, the powerful chief content officer at Vogue publisher Condé Nast, could be seen chit-chatting with Alexandre Arnault. Actress Gal Gadot, who serves as a Tiffany brand ambassador, participated in the event as well.
Bernard Arnault’s eldest son, Antoine Arnault, who oversees image and communications at LVMH, was also present. The Arnault patriarch — whose wealth now stands at around $209 billion, according to the Bloomberg Billionaires Index — was absent. All five of his children work at the company.
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(Updates with consultant comment in 12th paragraph.)
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