Category Archives: #luxury

Coach to re-enter the Russian market

COACH left Russia in 2011, where it was only distributed via multibrand stores, is returning to the country with a new partnership. Coach has just signed an exclusive agreement with BNS Group, a distributor in the region for labels including Calvin Klein, Michael Kors and Topshop.
The agreement has a duration of five years, with the possibility of renewal. The opening of four Coach boutiques in Russia is forecast between 2018 and 2023.

Currently, Coach is sold in Russia via two multibrand stores through Tsum. The brand entered the Russian market in 2008, partnering with local usiness Jamilco. At the time, it planned to open 15 stores. Finally, it only opened a handful, which have been closed since 2011.

Over the past 2 years, Coach has seen its stores in esteemed shopping destinations multiply: in Paris in 2015; then on London’s Regent Street in November; its flagship opening in New York in December on 5th Avenue; followed by its very first Italian boutique in the upscale Milanese Via Montenapoleone. Coach now operates over 450 stores in North America, 520 in Asia and 40 in Europe.

Coach recorded revenue of $4.147 billion (3.946 billion euros) for its fiscal year 2015-6 ended last July, of which women’s handbag sales accounted for 53%.

Sheikh Mohammed launches Dubai’s new $1.7bn mega-project

Dubai Ruler Sheikh Mohammed has announced the launch of Marsa Al Arab, Dubai Holding’s latest tourist destination development in the emirate.
The $1.7 billion (AED 6.3bn) mega-project, spread across 4 million sq. ft, will be developed on new two islands on both sides of Burj Al Arab Jumeirah. Marsa (Arabic for marina) Al Arab is expected to be completed by 2020.
One island will be dedicated to entertainment and family tourism, while the other comprises an exclusive luxury resort. The two islands will add 2.2 kilometres of beach frontage, as well as three new hotels and a number of new tourist attractions.
The family resort island will see Jumeirah Group introduce new leisure concepts and services as well as a new family-oriented hotel. To boost guest experience, Wild Wadi Waterpark will be moved from its current road-side location closer to the beach, and will be more than double its existing size when fully completed.
Dubai Holding will also develop ‘Marine Park’, a first-of-its-kind marine life edutainment centre in the Middle East, with a live theatre of a 1,000 seat capacity that will attract world-class shows to showcase various elements of marine life.

Marsa Al Arab will also include a private marina and a yacht club, as well as diverse food and beverage offerings, as well as a helipad.
Complementing Madinat Jumeirah, the development will include a mixed-use convention centre capable of hosting large international conferences and festivals. The convention centre will be supported by a new hotel, offering a selection of services for businessmen and corporates.
The project will also include a large retail space stretching across 20,000 sq. m, which will replace the current Wild Wadi Water Park area.

The shopping centre will consist of international high-end brands, as well as a selection of restaurants and coffee shops to meet the needs of its luxurious shoppers. Marsa Al Arab will also offer 300 sea-front residential apartments in the heart of the development.
Together, the enhanced Wild Wadi and Marine Park will sprawl over an area of 2.5 million sq. ft.
The new family destination will house a dedicated theatre with a capacity of 1,700 seats, which will become home to the world-renowned show Cirque du Soleil for the first time in the Middle East.
Dubai Holding will develop 140 luxury villas on the ‘exclusive private island’, which will include a marina for its residents. Located on the left of Burj Al Arab Jumeirah, the luxury villas will be operated by Jumeirah Group. The island will also host a boutique hotel equipped with world-class facilities that reflect ‘Marsa Al Arab’s status as an attractive destination for elite travellers.
Overall, Dubai Holding will add 2,400 hotel rooms to Jumeirah Group’s portfolio, bringing its total offering to 8,428 rooms. There will be 400 new F&B outlets throughout the destination.
The existing hotels in the vicinity will be transformed into a unified tourist destination.
The development will offer pedestrian pathways, a jogging track, large swimming pool and a cycling course, allowing its residents to practice a diverse selection of physical activities.
Location of the two islands – on the left is the luxury island, located behind Jumeirah Al Qasr and Madinat Jumeirah. On the right, the island located behind Jumeirah Beach Hotel and Jumeirah Beach.
Jumeirah Group will offer 10,000 additional parking spaces to accommodate the anticipated influx of visitors, as well as work closely with various government entities and other relevant companies to provide a rapid transport network to interconnect the resorts and entertainment destinations, facilitating fast and easy movement throughout Marsa Al Arab.
The project will break ground in June 2017 and will completed by late 2020.

In addition, Dubai Holding will launch the Dubai Pearl Museum to showcase a historical collection of rare and ancient pearls from the region and worldwide. The Dubai Pearl Museum aims to shed light on the lives of the divers as well as the tools they used to find the precious jewels, reflecting the UAE’s heritage, culture and national pride.
“The launch of this new and ambitious project is in line with the directives of the visionary leadership to provide the finest and rewarding tourist experiences for visitors to Dubai, as well as enhance Dubai’s position as a global tourist destination,” said Abdulla Al Habbai, Chairman, Dubai Holding.
“We are proud of the vital role that Dubai Holding plays in this sector through supporting innovation and contributing to the economic diversification of Dubai.”

Coach appoints president and CEO of Coach brand

Due to take up the newly created role in June, Schulman will be responsible for all aspects of the brand globally and will report to Coach chief executive Victor Luis. The new leadership structure follows Coach’s acquisition of Stuart Weitzman in 2015.

Schulman will be joining Coach from Neiman Marcus Group where he is president of Bergdorf Goodman and NMG International. He joined Neiman Marcus Group in 2012 and assumed additional responsibility for NMG International with the acquisition of MyTheresa.com in 2014.
Prior to that, Schulman was chief executive of Jimmy Choo and also held senior executive roles at Gap, Yves Saint Laurent and Gucci.
Luis Said: “I’ve known Josh for many years and had always hoped to attract him to Coach. He lives and breathes our industry and brings a unique blend of brand building and broad retail experience to the company, making him the ideal person for this newly created role. I couldn’t be more excited to have Josh lead the Coach brand.”
The company has also announced that Andre Cohen, currently president, of North America and global marketing for the Coach brand, will be leaving the company at the end of June to return to Asia with his family. Having worked with Coach since 2008, Cohen was instrumental in Coach’s development in Asia and has been spearheading the execution of the brand’s transformation strategy in the North American market over the last two years.
Luis added “Andre has been a great partner to me and a strong leader of our businesses in Asia and North America. I deeply appreciate his friendship and contributions over the last nine years but naturally I respect his family’s decision to return home to Singapore.”  

Prada opens new boutique at Saks Fifth Avenue, New York

To celebrate the recent opening of the new Prada women’s ready-to-wear boutique in Saks Fifth Avenue, the prestigious department store has dedicated the six store windows on Fifth Avenue to the Prada Spring/Summer 2017 collection.

The unique setting features a sequence of three different scenarios, using rubberized elements in alternating color shades with soft forms that suggest a natural, abstract landscape.
At approximately 100 square metres, located on the third floor of the store, the new store reflects Prada’s aesthetic principles and strong brand identity.
The Prada Spring/Summer 2017 collections are displayed on different levels in front of the dynamic background for a relaxed, comfortable and dreamy atmosphere.

Sweaty Betty to open flagship on Carnaby Street

Fitness brand Sweaty Betty has announced plans to open its first European flagship at 1 Carnaby Street in London. The prominent 204 sq m store is located at the south entrance to Carnaby Street and is the result of the brand upscaling from its existing store on Beak Street where it has been a resident since 2002.

The shop is arranged over ground and basement floors allowing the brand to expand and offer its full clothing, accessories and equipment collections, as well as housing a studio space for exclusive wellness events, giving a wider customer experience.   
Sweaty Betty joins other recent additions including Urban Decay, G.H. Bass and Estee Edit who have all chosen Carnaby for their first global or UK flagship store. 

Coach to open at Bullring in Birmingham UK

New York fashion house Coach has chosen the Bullring to open its first standalone store in Birmingham. This store will be the second outside of London for Coach, with the first opening its doors at Victoria Quarter, part of Victoria Gate in Leeds. The 280 sq m space will be located on the upper east level of the mall and will offer the retailer’s full range of bags, footwear, outerwear and accessories.

‘This latest signing reflects the strength of Bullring’s leading retail mix, attracting high-end, aspirational brands to the city. We’re delighted to welcome Coach’s first standalone store in the city, which significantly strengthens the already dynamic retail line-up at the centre,’ says Iain Mitchell, UK commercial director at Hammerson. 
Andrew Stanleick, president of Coach Europe, adds: ‘We are delighted to be opening our first standalone store in Birmingham. Bullring has a reputation as the region’s premier retail destination, and so it is a perfect fit for Coach. Following a successful launch in Leeds’ Victoria Quarter last week we are looking forward to bringing Coach’s modern luxury concept and collections to Birmingham.’ 

Mulberry launches new entity to operate its businesses in Asia

The move follows the signing of a new business agreement with Challice Limited.

Mulberry Asia will begin trading in Hong Kong from 3 April. In addition, a subsidiary in China and a branch office in Taiwan are expected to be operational this year once the business secures relevant business licences for the territories.

The Mulberry Group owns 60% of the share capital of Mulberry Asia while Challice holds the remaining 40%. Mulberry Asia will initially operate two stores in China, one in Hong Kong and one in Taiwan. It will also manage regional wholesale operations.
These are supported by the group’s Chinese language mulberry.com site and omnichannel platform throughout the region.
In addition to local marketing initiatives, Mulberry plans to invest around £3 million in additional support in North Asia over the next two years to build brand awareness in the region and capitalise on international tourist flows to the UK, Europe and North America. In the near term, the brand’s store network will be enhanced with a new store in Shanghai as well as relocation of its existing stores in Hong Kong and Beijing.
Thierry Andretta, Mulberry chief executive, said: “We are delighted to launch Mulberry Asia, which enables us to advance our international strategy of developing the brand’s retail and omnichannel model in a key luxury market. We see significant growth opportunity in the region and look forward to taking this major step forward in fulfilling Mulberry’s global potential.”

Hermes opens new store in London on the corner of Cadogan Place & Sloane Street

Hermès has recently opened a new store in London on the corner of Cadogan Place and Sloane Street. The new store which covers 400 sqm 0n two floors houses every one of Hermès’ 16 métiers.

The interior, which took just under a year to design and build, was presented to the studio as a blank canvas. Upon visiting it for the fist time, Montel says one thing was immediately clear: ‘Here, the star of the shop is not the shop itself, it’s the garden,’ he says gesturing to the store’s leafy view of Cadogan Square Gardens where a bright yellow mimosa tree is currently in full bloom.
The new London store will showcase a range of exclusive products including the re-issued London Bag in four limited-edition colourways. The bag, first created in 1962 features a clasp reminiscent of the epaulettes on the London Police Officers uniforms. In addition, a Yamaha Virago motorbike, which was covered in Hermès leather, is on display for the first time in the UK as an example of le sur-mesure services available at the store.

Paul Smith sales fall as wholesale suffers

Sales fell 6.7% to £178.6m for the year to 30 June 2016, while operating profit before exceptional items dropped 63% year on year to £4m, accounts filed at Companies House show.
The exceptional items include restructuring costs from the firm’s reorganisation of design teams, products and collections. Paul Smith consolidated seven lines into two last year: Paul Smith and the more contemporary collection PS by Paul Smith.
Operating profit after exceptional items was up 20% on the previous year to £11m and profit for the year was £7.9m compared to £6.1m in 2015. The firm paid out £4.4m in dividends, up from £3.7m in 2015.
“Retail sales are expected to overtake wholesale as our biggest channel for the first time in the coming year,” said director Ashley Long, pointing to a move towards strategically placed stores and key wholesale accounts, which support a comprehensive omnichannel service.
Wholesale remained its largest channel in the year but, due to weak demand in core markets of the UK, France, Russia and parts of Asia, sales fell 13% year on year.
Retail sales increased by 2.2%, and fell 2% on a like-for-like basis, reflecting a mixed performance across its core markets and the closure of the Fifth Avenue store in New York in January 2016.
During the year, the firm opened new stores in Glasgow and Dover Street Market in London. It has since relocated on Rue St Honore in Paris and opened in Birmingham and Sydney.
Online sales increased by 11% during the year, representing 16% of sales – up from 13% in 2015.
“While the wholesale market is in a period of rapid change, we do anticipate sales stabilising in the future,” said Long.
“Geographically we saw many challenges in the year. In Europe our traditional independent wholesale customer base continued to shrink. In Asia, outside of Japan, we saw a general slowdown in the ready to wear markets. In the Middle East our partners experienced low customer confidence brought about by the unsettled political situation. However, the US, Australia and South Africa all saw positive growth in the year.”
The firm said it continued to reduce overheads and had sought to become more agile in response to the market conditions and uncertainties following the Brexit vote and other external factors.
But Long added: “We expect the current challenging trading conditions to continue for the foreseeable future.”
The company said its new collections have been well received, with like-for-like retail sales up 1% on last year and overall retail sales up 7% since the year end.  
Paul Smith launched his first collection for men in 1970 and for women in 1994.

Canada Goose to launch first UK store on London’s Regent Street

The high-end winter clothing retailer and brand, which trades in around 50 countries worldwide through hundreds of concessions and an ecommerce platform, will move into 244 Regent Street – the unit formerly occupied by Armani Exchange.
Sources close to the situation told Retail Week that the deal for Canada Goose to acquire the lease on the Crown Estate-owned unit was “a done deal”.
It is understood that Canada Goose plans to open its doors in the autumn, in time to capitalise on the busy Christmas trading period.
The shop will be Canada Goose’s third standalone store anywhere in the world, having opened its doors in Toronto and New York to much fanfare late last year.
Retail Week understands the business is pursuing a strategy to open a number of other flagships in key cities across the globe over the next few years as part of its rapid growth plans.
Canada Goose’s revenues have rocketed by more than 450% in the past five years alone.
Experience-focused
London’s shoppers can expect an experience-focused shopping trip when the store opens later this year.
When it revealed plans to open its first two stores in Canada and the US a year ago, Canada Goose said the shops would “deliver unparalleled service, putting experience at the forefront of every interaction”.
It invested in training to ensure its shop-floor staff became “not only product experts, but true brand ambassadors”.
Variety
Canada Goose also boasted that the stores would stock “a full assortment of every seasonal collection with the largest variety of colours and sizes anywhere in the world”.
Retail property consultancy Harper Dennis Hobbs, which advised Canada Goose on its search for a UK store, declined to comment.
Details of the premium parka-maker’s plans to launch a bricks-and-mortar presence in London emerged just a day after it floated on the New York Stock Exchange.
After setting its IPO at $12.78 (£10.35) per share, the price surged 26% to $16.08 (£13) on the first day of trading.
The successful stock market debut valued the company at $1.7bn (£1.37bn).
The business was founded in Toronto by Sam Tick 60 years ago, under the name Metro Sportswear, which initially specialised in woollen vests, raincoats and snowmobile suits.
In the 1970s, Tick’s son-in-law David Reiss – no relation to his namesake who founded British fashion retailer Reiss – joined the company and established the label Snow Goose, which later became Canada Goose, branching out into Arctic and mountain expedition coats.
The label made its on-screen film debut in 2004 when its jackets appeared in two Hollywood blockbusters, The Day After Tomorrow and National Treasure.
Private-equity group Bain Capital bought Canada Goose in 2013 and last year it opened its first two flagship stores, at Yorkdale Shopping Centre in Toronto, in October, and Wooster Street in New York City, in November.

The renowned Le BHV Marais’ first flagship store is set to open in Dubai

The internationally renowned Parisians’ favourite department store ‘Le BHV Marais is set to open its first flagship store in the United Arab Emirates on the 13th of March 2017 in the buzzing City Walk, Dubai as part of its international expansion in franchising with MEDS.

An exclusive media visit to discover Le BHV Marais was hosted today by Mr. Pascal Abchee, General Manager, MEDS and attended by Home dcor, gastronomy, style and fashion experts.
Established in 1856 in Paris, Le BHV Marais is a subsidiary department store from the Galeries Lafayette group and celebrates this year its 160 years anniversary.
‘Le BHV Marais first Emirati branch reflects the strong partnership between Galeries Lafayette Group’ and MEDS and is a confirmation on the trust in our company and the fast growing UAE retail market ‘ said Mr. Abchee.
Spread over two floors totalling 6,000 sqm, the store was designed by the renowned architect Kristina Zanic who ensured preserving its Parisian flagship store atmosphere and identity by using wood and stone finishing.
Shopping sprees become an exciting journey within the different departments of fashion, beauty, home and gourmet.
On the ground floor, the beauty department is a haven with over 30 of the world’s top names. The same floor houses the trendiest bags, jewellery nd timepieces to be matched with the latest fashion collections for women, men and kids by emerging talented designers and renowned brands.
The first floor is dedicated to exquisite home accessories from French cookery to living rooms and bedroom designs, cutlery, table decorations and home appliances.
The gastronomy segment is a foodies’ destination, where kitchen variety is abundant with a large choice of high standard restaurants.
Led by the famous Executive Chef Russell Impiazzi, the famous Galeries Lafayette Le Gourmet satisfies its loyal fans and food lovers at its second branch at Le BHV Marais. Mastering a multitude of international cuisines, ranging from Italian to Indian, in addition to delicious pastries and a unique retail section, Le Gourmet is the perfect place to indulge your cravings.
Le Gourmet also introduces ‘Le Grill a new concept specialized in rotisserie and grill created to tantalize meat lovers’ taste buds.
Le BHV Marais’s Dubai branch mirrors the steady growth of the UAE retail industry which now accounts for 11% of the country’s GDP. Dubai’s dominantly young and vibrant market demands sophistication, which Le BHV Marais caters to with accessible and high-end brands targeting a customer base ranging mainly between 25 and 45 years old.

Saks Fifth Avenue is coming to India
Contributor2 days ago

Saks-building – retail in asia

Saks Fifth avenue is set to enter India with two new stores following a yet-to-sealed distribution deal between the American department store and Aditya Birla Fashion Retail Ltd.
The first Saks Fifth Avenue store looks to open in Aerocity near the Delhi airport followed by a second in Mumbai’s Bandra Kurla Complex (BKC), sources told Livemint, but not until late 2017 or early 2018.
“Aditya Birla Group is in a late stage of discussions” to lease 100,000 square foot of space in Worldmark 2, where the first Saks outlet in India will open, a sourced also revealed to the Economic Times.
Saks Fifth Avenue corporate personnel have visited India twice in the past three months, ahead of a return trip planed for March, said the sources. Both firms have reached an understanding and are in the process of finalising their plans, a person told local media. It is also believed CBRE is acting as a real-estate consultant, according to sources.
SEE ALSO: New CEO of FlipKart in India to compete Amazon
Both Saks and Aditya Birla were unavailable to comment.
The partnership between Aditya Birla Fashion and Saks Fifth Avenue is expected to take form as a long-term licensing agreement. The department store sells cosmetics, apparel and accessories from luxury brands. It is also expected to introduce brands like Ralph Lauren that are not present in India, said sources.
Owned by Hudson’s Bay Co., Saks Fifth Avenue has about 60 stores worldwide. The parent form has been looking to expand its fold – which includes Saks Fifth Avenue and Lord & Taylor in the United States, as well as Galeria Kaufhof in Europe — to reduce the impact of consumer spending in North America.
In early January, Hudson cut its full-year revenue forecast for the second time, citing a challenging retail environment in the United States and Europe.
According to Reuters, Hudson’s Bay made a takeover approach for retail chain Macy’s in February, in a deal that would push the Canadian department store operator deeper into the U.S. market.
Aditya Birla Fashion Retail operates the Madura Fashion division. It distributed brands including Van Heusen, Louis Phillipe, Peter England and Allen Solly. In 2012, it acquired Pantaloons department retail chain, India’s largest fashion and apparel retailer, with a revenue of over Rs6,060 crore in 2016.

London ranks top for luxury store openings in 2016

London remains the global choice for luxury retailers as it tops the list of store openings in 2016, according to the Saville Global Luxury Retail report.
London saw 41 new luxury openings during the year, of which 15 were a brand’s debut store in London. This compared to 36 in Paris and 31 in both New York and Dubai.
In fourth place, Hong Kong attracted 25 new store openings while in Milan there were 24.
London has consistently been the most visited city in the world by international tourists and acts as useful stepping stone for European brands prior to expanding into the US.
Marie Hickey, commercial research director at Savills, explaiined “A significant proportion of luxury goods are now purchased outside a shopper’s home market, particularly those of Chinese consumers, reinforcing the importance of destination cities. This was apparent in 2016, when all of the key established global retail destinations saw more than 20 luxury brand store openings.”
Anthony Selwyn, head of Central London retail at Savills, said: “The role of a specific destination in brand building and enhancing the customer experience remains key, and the heritage of London and Paris saw these cities rank first and second for new luxury openings last year. With international travel expected to double by 2030, appetite among luxury retailers to expand in key markets will remain strong, though we expect to see several of the emerging luxury markets gain more market share.”

Stefanel plots UK franchise stores

Italian womenswear brand Stefanel is looking to open up to 15 franchise stores across the UK and Ireland.
Love Brands, the brand’s distributor in the UK and Ireland, has teamed up with franchise consultant Peter Danby to recruit potential franchisees. They will work alongside John Lane from London-based retail property advisors Tienda to select locations.
The brand is looking at market towns including Canterbury, Windsor, Tunbridge Wells, Cambridge, York, Harrogate, Dublin and Bath.
Hugo Deane, director of Love Brands, said: “We want aspirational areas that will suit the mid to premium offer. We believe there are 10 to 15 store opportunities across the UK and Ireland but we’ll have to see how it goes. We plan on opening three or four stores within the next 12 months.”
In the UK, the brand has eight House of Fraser concessions and stores on Regent Street and Covent Garden in London.
It launched wholesale in the UK for spring 17 and has secured 25 doors. Wholesale launched in Ireland for autumn 17 with agent Nuala Henshaw.
Stefanel has 400 retail and franchise stores worldwide.

Ralph Lauren names new executives to new position

 Ralph Lauren names new executives to new positions , 2 weeks after CEO steps down
Ralph Lauren Corp. RL, -0.77% named on Thursday Jonathan Bottomley to the newly created position of chief marketing officer, effective April 3. The fashion apparel and accessories company said Bottomley, who was most recently Chief Strategy Officer at Vice Media, will lead the global marketing team and be responsible for Ralph Lauren’s brand voice. The company also named Tom Mendenhall to the newly created role of brand president, Men’s Polo, Purple Label and Double RL, effective March 29. Mendenhall was most recently chief operating officer at Tom Ford International. All men’s brand functions will report into Mendenhall, including design and merchandising. The moves follow Stefan Larsson stepping down as chief executive officer on Feb. 3 after just 15 months in the position, after Larsson and Chief Creative Officer Ralph Lauren couldn’t agree about how to evolve the creative and consumer-facing parts of the business. The stock, which tacked on 0.3% in morning trade, has tumbled 29% over the past three months, while the S&P 500 SPX, -0.30% has gained 7.7%.

Tod´s opens new store in Singapore at The Shoppes at Marina Bay Sands

Italian luxury leather brand Tod’s opened its second store in Singapore at The Shoppes at Marina Bay Sands. It is the first store with the new concept in Asia, preceded only by a boutique in London.
To mark the opening, the store features exclusive maroon editions of the Double T bag, Double T Gomminos and a men’s messenger bag, all marked discreetly with the location tag “Marina Bay Sands Singapore”.
There is also a range of accessories including alphabet charms allowing for personalisation.

FURLA opens new store in London in Knightsbridge

Furla has recently opened a new store in London at 71 Brompton Road. This follows the success of its standalone Regent Street store, and continues to strengthen the brand’s presence in the UK.

Located in the heart of the high-end shopping district of Knightsbridge, the new store is set across two floors, occupying 280 sq m. It houses the brand’s women’s bag and leather accessory offering, with its men’s collection on the lower ground floor alongside two areas dedicated entirely to footwear.
To mark the opening, Furla has launched a new custom version of its star Metropolis bag with a print featuring a London Bridge motif, which is exclusive to the store. Each bag is a limited-edition model, accompanied by an “Exclusive for Brompton Road London” tag.
Furla will also offer the option to match the bag with a bright blue fur pompon, adding an extra personalised touch.

House of Fraser profits plunge 46% in first half of 2016

House of Fraser profits dived nearly 50% in the first half of the year as the department store said it faced a “very challenging retail environment” in the light of unseasonable weather and Brexit uncertainty.

Underlying profits fell 46% from £9.2m 12 months ago to £5m in the six months to the end of July – excluding interest payments, tax, write downs on the value of property, and a one-off fall in income of nearly £4m related to a new credit card agreement.
Profits were hit by the increased cost of delivering goods ordered online and a decline in sales of House of Fraser’s own brands.
Total sales remained steady at £573.5m as the group’s established department stores experienced a 2.5% slump. Underlying sales, including a 17.8% rise in online sales, lifted 0.9%.
Nigel Oddy, chief executive of the group, which was bought by Chinese conglomerate Sanpower in April 2014, said House of Fraser had experienced an “extremely volatile trading environment”.
The profit slump comes after fellow department stores John Lewis and Next both revealed a fall in first-half profits as they were hit by the need to discount to clear summer stock.
Oddy said: “We would never use the weather as an excuse but we had record temperatures in September when we were selling autumn product and cold temperatures in June when we were trying to sell summer. When we have a warm day [in the autumn], sales drop off a cliff. Far more than ever before shoppers are buying now to wear now.”
He said that shoppers had also been affected by uncertainty around the EU referendum since January this year, and consumer confidence continued to be affected by concern about what Brexit might mean for household finances.
“All of that goes into the pot and make a very volatile market and low consumer confidence,” Oddy said.
House of Fraser is trying to tempt more shoppers into stores by introducing new brands and concessions. It plans to install five Hamleys toy areas by the end of November and has also brought in All Saints, Monsoon and Mulberry.
The department store’s poor performance was in sharp contrast to online specialist Boohoo.com which revealed a better than expected 40% rise in sales and 129% rise in pre-tax profits in the six months to 31 August.
The clothing site said it had attracted 28% more shoppers and increased the amount each shopper bought as it expanded in Europe and the US and extended its ranges in menswear, lingerie and plus-size womenswear.

Prada to close 25 stores in 2016

Following negative financial reports in the past year, Prada has embarked on a restructuring plan. In 2016, Prada announced it will close 25 stores (among the least profitable ones) and will open 20 new stores in high-potential locations. The first store closure was one of the Prada stores in Milan – the 500 sqm store on Corso Venezia. The Prada currently operates 5 stores in Milan, two in Galleria Vittorio Emanuele, two on Via Montenapoleone and one on Via Spiga.

John Lewis plans £9m beauty hall expansion

John Lewis plans £9m beauty hall expansion

John Lewis is investing £9m in expanding its beauty halls as the market for face creams, makeup and perfumes outperforms fashion.
The department store is to increase the size of its beauty departments in Cambridge, Bluewater in Kent and Cribbs Causeway in Bristol by 50% and modernise four other beauty halls including at Peter Jones in London’s Sloane Square.
The investment, which will bring in new up-market brands including Marc Jacobs Beauty, MAC and Tom Ford Beauty, follows the opening of the department store’s own &Beauty spa in Birmingham and the Clarins Beauty Bar, which opened at John Lewis Oxford Street last year.
Ed Connolly, buying director for fashion and beauty, said: “Beauty is one of the best performing categories at John Lewis and a significant footfall driver, so this investment is a reflection of our ambition in this space.”
The move comes as retailers including Debenhams and Marks & Spencer and supermarkets such as Sainsbury’s also expand their beauty ranges to try to cash in on rising demand.
Sales of colour cosmetics in the UK have risen by a third in the last five years according to Mintel while sales of soap, bath and shower products have risen 4.3%, despite it being a mature market under pressure from discounters.
In contrast, fashion retailers have endured a tough few years as a warm autumn and winter in 2015 hit sales of knitwear and coats while a chilly and wet start to summer 2016 forced many chains into early discounting.

Hackett opens new store in London at One New Change

Menswear brand Hackett London is set to launch a new store within London’s One New Change shopping centre in St Paul’s this 4 August.

According to One New Change, the store will carry the brand’s Mayfair and formal collections, as well as a curated selection of casual wear and accessories. The store will also offer the full Hackett experience including onsite tailoring services such as bespoke, personal tailoring and made to measure.
The One New Change location will add to further Hackett stores in London on Jeremyn Street, Sloane Street and Regent Street.
The space will showcase a handpicked selection of artwork by the late Brian Blow, a British artist renowned for his graphic prints and abstract sculptures. Other design elements will include ‘top-hat’ lamps above the cash desks, parquet flooring and a Georgian archway, said One New Change

Salvatore Ferragamo opens largest store in Canada, in Ontario

Salvatore Ferragamo has recently opened its largest store in Canada at Square One in Mississauga, Ontario. The new store which covers 4,425 square feet features bags, accessories and footwear for men and women, as well as ready-to-wear collections for both men and women. The store is divided into a series of rooms, providing a luxurious and intimate in-store experience.

The new Ferragamo store in Ontario joins the other two stores of the brand in Canada, in Toronto (Yorkdale Shopping Centre) and Vancouver (Robson St.)

Prada opens new store at Gold Coast, Pacific Fair, Australia

Prada has recently opened a new store on the Gold Coast in Australia at Pacific Fair. The store covers 310 square metre and features apparel, leather goods, accessories and footwear for men and women. The store comprises a succession of rooms, each featuring a different atmosphere.

Max Mara Group launches two new brands

Max Mara Group has added to its portfolio by launching two new brands with a contemporary, accessible positioning: Tresophie and AIIM will be available with the Spring 2017 season and will be initially distributed via physical and online multi-brand stores, then via their own e-stores from the end of 2017.

Through Tresophie, the Italian group intends to carve out a niche in the sophisticated, contemporary dress segment. The collection will consist chiefly of dresses of different cuts and styles, catering to all the requirements of contemporary women: from gowns to evening dresses to those for important appointments. Besides dresses, the label will also feature tops, skirts, jumpsuits and ten or so jackets and boleros, all with special occasions in mind.
Distribution-wise, the 52-item collection will be available at the end of January 2017 in physical and online multi-brand stores in Italy, France, the UK and Russia. The average price of Tresophie clothes will be €280. From the end of 2017, the brand will operate its own e-shop.
AIIM is the acronym of ‘Art is inside me’. The brand will focus on knitwear, offering a complete range of cardigans, sweaters, dresses, trousers and skirts. The collection will initially consist of about fifty items inspired by the work of Art Nouveau artist Alfons Mucha. Specifically, it will feature 3D-effect jacquard fabrics, items blending knitwear and lace jersey, as well as dresses in plumetis tulle jersey and pointillist-style jackets.
The Max Mara group indicated that art will be the creative starting point for this collection, in order to create a fascinating, unique mood.
AIIM will be available at the end of January 2017 in France, Spain, the UK, Italy and Russia, distributed via physical and online multi-brand stores. It will be positioned in the contemporary fashion segment, with an average retail price of €160. At the end of 2017, also AIIM will operate its own e-shop.
The Max Mara group already owns several brands, including Max Mara, Max Mara Weekend, Marina Rinaldi, Marella and Pennyblack.

Is Ralph Lauren moving away from luxury?

Ralph Lauren has always been associated with luxury and privilege and it’s polo player logo has been synonymous with dressing elites around the world.

Since the American-based fashion giant announced earlier this month it was to close a significant amount of stores and let go of 1,000 employees there have been plenty of questions as to the brand’s new strategy and direction.
Bottom line sales, specifically a drop in profits, have led Ralph Lauren to restructure its portfolio of labels and bring the company back on course. According to MediaRadar, a multi media sales intelligence tracker, the answer as to the company’s direction can be found in the initiatives of its CEO, Stefan Larsson.
Industry insiders speculate that Larsson’s history at discount retailers Old Navy and H&M are key to understanding its latest moves. MediaRadar analyzed Ralph Lauren’s advertising before and after Larsson’s start data shows two key course changes that shed some light on their new strategic direction:
High end advertising dropped from 55 to 26 percent
First there is a significant move away from luxury. While total marketing investment level didn’t change over one year, there has been a decided move away from supporting their luxury lines. In the first five months of 2015, fully 55 percent of marketing was for Purple Label and Ralph Lauren Collection, the company’s most expensive, most luxurious lines. Just one year later however, that allocation has been slashed to 26 percent. Instead, the lower-priced Polo and eponymous Ralph Lauren lines are the focus. Together they now represent 64 percent of all ads.
The second indication of new strategy is tightening product categories. In the five months from January to May, 2015, Ralph Lauren marketed 29 specific product lines. One year later this list was nearly halved to 14. The brands continuing with the most emphasis are Ralph Lauren, Polo, Lauren, and Denim & Supply. Smaller lines like Chaps and RLX didn’t get marketing support at all.
This data shows a key pivot from the company as the epitome of luxury designer wear to a focus on affordable fashion. For Larsson, this is a turnkey positioning solution, since he helped revitalize H&M and Old Navy to the powerhouse brands they are today.

Cosmetics maker Revlon to buy Elizabeth Arden in $870 million deal

Cosmetics maker Revlon Inc (REV.N) has agreed to buy Elizabeth Arden Inc (RDEN.O) in an $870 million deal to strengthen its skincare and fragrance business and expand in high-growth markets including the Asia-Pacific region.

Elizabeth Arden’s shares rose nearly 50 percent to $13.96 in extended trading on Thursday, close to the cash offer price of $14 per share. Shares of Revlon, controlled by billionaire Ron Perelman, rose slightly to $31.30.
The deal, which comes less than six months after Perelman said he would seek strategic alternatives for Revlon, will help the companies better compete with deep-pocketed rivals such Estee Lauder Cos Inc (EL.N) and L’Oreal SA (OREP.PA).
The equity value of the deal is $419 million, based on Elizabeth Arden’s outstanding shares as of May 3.
Elizabeth Arden has a strong presence in the luxury skincare market, mainly in the anti-aging category, with brands such as Prevage, Ceramide and SuperStart. Its fragrances include those licensed from celebrities such as Britney Spears, Justin Bieber and Taylor Swift.
Revlon is stronger in hair color and color cosmetics, which are mainly distributed through mass retail channels and beauty salons across 130 countries.
“The combination will leverage Revlon’s scale across major vendors and manufacturing partners, improving distribution and procurement,” the companies said, adding that they expected cost synergies of about $140 million from the deal.
Elizabeth Arden has reported lower-than-expected revenue in six of the past eight quarters as it loses customers to rivals with more exclusive offerings.
BofA Merrill Lynch and Citigroup Global Markets Inc have committed about $2.6 billion to fund the deal and refinance the debt of the two cosmetic makers.
Revlon also said it expected 2016 net sales of $2.0 billion-$2.1 billion on a constant-currency basis, excluding the impact of the acquisition. This implies a “high single-digit growth rate” in net sales, the company said.
Revlon also forecast adjusted earnings before interest, tax, depreciation and amortization of $400 million-$420 million for the year.

Golden Goose opens new store in London

Italian luxury brand Golden Goose has opened its first store in the U.K., located on Dover Street in London’s Mayfair.Spanning two floors, the 950-sq.-ft. space stocks the brand’s women’s and children’s collections, as well as the men’s wear range, Haus by Golden Goose.
The space has a minimalist decor that showcases the brand’s colorful pieces, which include green metallic leather biker jackets, red tulle skirts, glitter brogues and backpacks and a series of the signature low-top sneakers. They come with glitter finishes, studs and oversized crystals for spring- summer 2016.
The U.K. launch follows a series of openings of standalone stores across the globe, including New York, Tokyo, Seoul and Milan. Most recently, the high-end fashion label opened a shop on rue de Saint Peres, on Paris’ Left Bank, as part of its ongoing international expansion strategy.

Chanel opens in Vancouver largest retail space in Canada

CHANEL has opened a large ground-level boutique inside of Vancouver’s Holt Renfrew at CF Pacific Centre, replacing a previous location on the women’s upper-level designer floor.

Although a shop-in-shop, Vancouver’s new Chanel concession is now Canada’s second-largest location, featuring the country’s first Chanel fine jewellery and watch boutique. The boutique also features ready-to-wear, handbags, shoes, accessories eyewear.

The new Chanel concession measures about 5,060 square feet, and includes a separate 750 square foot area dedicated to fine jewellery and timepieces.

Ralph Lauren to Slash 1,000 Jobs, Shutter Stores

Designer Ralph Lauren, right, poses in his office with Stefan Larsson, global brand president for Old Navy, Tuesday, Sept. 29, 2015, in New York. Lauren is stepping down as CEO of the fashion and home decor empire that he founded nearly 50 years ago, and Larsson, who has been the global president of Old Navy for three years, will succeed him. 

Ralph Lauren unveiled plans to cut jobs and close stores as the luxury brand struggles with a prolonged period of weak sales. The apparel maker and retailer also disclosed sales targets for the year that missed Wall Street’s expectations, news that sent shares lower on Tuesday.
The company said it would book charges of up to $400 million, with a bulk of those expenses tied to lease terminations, store closure costs and severance expenses. Under the plan, Ralph Lauren RL -1.68% said it would also simplify the company’s leadership by moving from an average of nine layers of management to six. While Ralph Lauren didn’t disclose specifics, the company told The Wall Street Journal that it would close 50 stores and cut 1,000 jobs, or 8% of the full-time workforce.
“We have to evolve,” new CEO Stefan Larsson said in a presentation to investors Tuesday. “We have to cater to the life and style that people dream of today.”
Ralph Lauren also projected fiscal-year net revenue would post low double-digit declines, citing store closures and a weak retail environment in the U.S. Analysts had projected a far more modest 4% decline. First-quarter sales are also expected to be soft.

CHANEL opens new temporary store in Amsterdam

During the renovation of its store on P.C. Hooftstraat, CHANEL has opened a temporary store on the same road. The building, called crystal houses, is conceptualized by acclaimed Dutch architecture practice Mvrdv. The project not only represents a mean architectural feat, but also marks the arrival of the purpose-built luxury flagship store – a longtime phenomenon elsewhere – in the Dutch capital.

The new CHANEL boutique which features a glass facade occupies the lower floors of the building measuring a spacious 620 sqm., while the top floor remains residential.

Harrods opens temporary outlet in Doha

London luxury department store Harrods has opened a temporary store in Doha for the Christmas period.
The iconic store, which is owned by Qatar Investment Authority (QIA), opened a 6,500 square metre branch at Katara Cultural Village at the weekend. For the first week, the store is only open to VIP visitors, after which the general public can visit from 4pm to midnight daily for the next 45 days.
Designed by Italian architect Gio Pagani, the store is a larger version of the Harrods branch in Sardinia.
It features 14 luxury brands, including Audi, Bentley, Buccellati, Graff Diamonds, Chopard and Ferrari. The store also features luxury vehicles, including Rolls-Royce, BMW and Bentley.
“The goal for this ambitious village was to create a really unique space that enhances the environment, adds a desirable ‘wow’ factor, and highlights each luxury brand within a contrasting unexpected temporary space, turning what was originally an anonymous space into one of the world’s most desirable shopping experiences,” said Pagani.
Sheikh Abdullah bin Mohamed bin Saud Al Thani, CEO of QIA, said the store was brought to Doha to coincide with Qatar’s national day celebrations, with a much larger store planned for next year’s national day. 

 

Qatari-owned Valentino offers $569m for Pierre Balmain

Italian fashion house Valentino, owned by Qatar’s Mayhoola for Investments, has offered 500 million euros ($569 million) to buy Pierre Balmain, French newspaper Les Echos has reported , citing sources.

The French fashion house, led by artistic director Olivier Rousteing, has also received offers from a Chinese group and an American investor, Les Echos said, without providing names.
The heirs of Pierre Balmain’s founder, Alain Hivelin, have until Thursday to decide whether to accept one of the three offers, according to Les Echos.
Valentino and Pierre Balmain were not immediately available for comment. 

 

Louis Vuitton to close more stores in China

China Retail News reports that French luxury house Louis Vuitton has officially confirmed that the company will close two stores located in Shanghai and Shanxi, respectively, by the end of March 2016.
A representative of Louis Vuitton China said that the two stores will no longer operate from April 2016. However, Louis Vuitton has emphasized that the store closure does not mean they will stop their Chinese development strategy and they will continue to invest and expand there this year.
This wouldn’t be a first for Louis Vuitton in China though. According to a report on China’s luxury market in 2015 published by global management consulting company Bain, they closed six stores and opened two new stores in China last year. LVMH has stated in its financial report for the third quarter that due to the continued weakness of Chinese mainland, Hong Kong, and Macau markets, its Asia Pacific, excluding Japan, market share continued to shrink.
Last year media outlets reported that Louis Vuitton were set to close stores in the cities of Guangzhou, Harbin and Urumqi, which will leave the brand with about 50 stores in China. So will we see more stores in China close than what has been reported? Only time will tell.
Louis Vuitton isn’t the only luxury house to have been hit by China’s slowing economy. Giorgio Armani, Hermès and Versace are among those to have closed stores in the country over the past couple of years. 

 

Hugo Boss opens new store in Florence

Hugo Boss opens a new store in Florence, Italy. The store is located at 70-72 via Por Santa Maria, steps from Piazza Signoria. The new store covers a surface of 500 sqm over three floors.
The groundfloor is dedicated to Boss Woman while the first and second floors and dedicated to menswear and accessories (Boss Sportswear, Boss Clothing). 

    
   

Galeries Lafayette set for redevelopment

Parisian department store Galeries Lafayette has announced that it will be working with British architecture studio AL_A to transform the ‘Cupola’ building of its flagship located on Boulevard Haussmann in Paris.
The redevelopment is part of the company’s strategy to build the ‘department store of the 21st century,’ with the aim of offering consumers a new shopping experience, and the remodelling of the 430,500 square foot store will start in early 2017.
AL_A, founded by Amanda Levete, has recently worked on projects for the Victoria and Albert Museum, as well as the Selfridges store in Birmingham, were chosen for its “bold proposal and intuitive conceptual approach” that will “create a visionary metamorphosis of the department store’s main building, relying on tradition and modernity,” a press statement from Galeries Lafayette said.
Nicolas Houzé, chief executive officer of Galeries Lafayette and Bhv Marais said: “We are delighted to start this collaboration with Amanda Levete and her team to conduct the reinvention of this iconic Cupola building, which is also the soul of the Galeries Lafayette brand. Amanda has demonstrated her talent for radical thinking and reimagining built heritage, and I am confident that her innovative vision will serve our ambition to offer to our clients the department store of the 21st century.”
Amanda Levete, director of AL_A, added: “This store is an institution that has a special place in the life and identity of the city of Paris. Our commission is a fantastic opportunity to build on tradition to make a living contribution to the future of Galeries Lafayette and the cultural life of Paris.
“The exquisite craftsmanship of the original building and its location in the heart of Haussmann’s city are both elements we seek to celebrate as we move forward.”
  

Finery to open retail outlets in 6 flagship stores of John Lewis

Finery, the online fashion retailer of womenswear, shoes and accessories, has decided to have an offline presence. It is set to open physical outlets in six flagship stores of John Lewis. The move follows the company clocking £5m (€6.5m, $7.3m) in its first year of sales.
Nickyl Raithatha, cofounder at the company, said: “We are on the cusp of becoming mainstream. [It will] accelerate awareness of our brand. It is important for us to be wherever our customers what to be and there will always be people that want to try clothes on before they buy.”
He added that the company had beaten expectations by attracting 10,000 customers since its launch 12 months ago. Raithatha said while there are no current plans for a standalone store, it is working on opening more of these concession stores, which are essentially miniature stores operated by the brand and located within a larger store, to enable reaching out to more customers.
The move also reflects the latest trend of online retailers having a physical presence. Examples of other such internet-based retailers include furniture companies. In 2015, Loaf and Made.com set up high street stores and more recently online giant Amazon launched its physical bookstores across the US.
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Finery was set up in 2015 by Caren Downie, Raithatha and Luca Marini. While Downie is a former fashion director at Topshop, Raithatha and Marini are both from Harvard University with work experience at Rocket Internet, the German company that builds online startups and owns stake in various models of internet retail businesses.
The London headquartered company is backed by Global Fashion Group that is dedicated to bringing fashion online to emerging markets and has shareholders including Kinnevik, the Swedish investment firm, and Rocket Internet. Finery designs all of its offerings in-house and prices its collection of the 150 to 200 items that it produces between £40 and £250.
Raithatha said: “We realised there was a gap in the market for women who wanted quality designed clothes between the high street and designer.” Downie, who is considered to be amongst the most influential women in British fashion, said the inspiration to start Finery came with the desire to provide both quality and design at accessible price points, according to The Telegraph. 

 

Selfridges celebrates new sales record

Selfridges experienced the most profitable hour in its history as shoppers turned out in their thousands for post-Christmas deals. 
Crowds appeared outside Selfridges stores across Britain, in some cases as early as 1am, to take advantage of Boxing Day sales. The dense crowds were a welcome reappearance as recent sales events have seen high street retailers losing customers to online stores. 
The result was an intake of just over £2m by 10am from tills alone, a 2% rise on Selfridges’ previous record for its most profitable hour. 
“It is encouraging to see High Streets performing significantly better than Boxing Day last year,” said Diane Wehrle, Insights Director at Springboard. She called the sales “surprisingly positive” as the influx of foreign shoppers and mild weather helped to boost profits. 
It would seem that Selfridges means to end the year on as high a note as it started: in November the chain revealed results marking the 12 months to the end of January 2015 as its most profitable financial year of all time, with operating profits rising by 4% to £155m. 
The store has credited its success to its growing online presence as well as its continuing focus on luxury fashion brands. 
Selfridges currently trades from four stores in the UK. Recently it has invested over £300m on overhauling its flagship store on Oxford Street, London. 

 

Merry Christmas and Happy New Year

Wishing all our readers and followers a Merry Christmas and Happy New Year  

  
 

Burberry to wrap up Piccadilly Circus with 3D scarf campaign 

Burberry is taking over the world famous Piccadilly Circus curved screen with an interactive campaign that usesthe same technology featured in the 3D film Kung Fu Panda.
The British fashion business has partnered with DreamWorks Animation to create an advert that uses the movie studio’s NOVA technology to allow passersby to design their own personalised Burberry scarf.
Christopher Bailey, chief executive of Burberry, said: “The huge screens in Piccadilly Circus give us a great canvas to launch the technology in a space that will show the possibilities of what this technology can do in an entertaining and engaging way.
“Giving users the ability to control their movement in various ways makes the experience much more personal when viewed on a screen whether at home or on a digital billboard.

“We partner closely with many social media platforms around the world such as Twitter, Facebook, Line and most recently Snapchat because they allow us to develop a much more intimate relationship with our customers.
“The campaigns we create are not developed with a purely commercial imperative, our aim is to identify platforms where we can create interesting content that we believe audiences will enjoy so that our relationship with them can extend beyond the purely transactional.”
Visitors to the London landmark will be able to use their mobile phones to design their own heritage Burberry scarves with their initials, which will then be beamed onto the giant screen.
They will then be able to buy their personalised scarf online or from Burberry’s flagship store on Regent Street.
“Burberry is a world leader in luxury, and, leveraging NOVA’s technology, we’re thrilled to help them demonstrate a new and innovative product experience that enables consumers to both personalize and visualize the iconic Burberry scarf”, said Jeffrey Katzenberg, chif executive of DreamWorks Animation.
It is the latest move by the luxury fashion house to appeal to technology savvy shoppers.
It has also developed a photo booth with Google that allows shoppers to star alongside Elton John and Rosie Huntington Whiteley in its Christmas adverts.

The luxury group has also launched its own music Youtube site, Burberry Acoustic, featuring up and coming British singers including James Bay and Mercury music prize winner Benjamin Clementine, performing acoustic sets.
The group also has its own Snapchat and Instagram accounts and was the first brand to livestream its show on Japanese messaging platform Line. 

   

Harrods opens temporary outlet in Doha

London luxury department store Harrods has opened a temporary store in Doha for the Christmas period.

The iconic store, which is owned by Qatar Investment Authority (QIA), opened a 6,500 square metre branch at Katara Cultural Village at the weekend. For the first week, the store is only open to VIP visitors, after which the general public can visit from 4pm to midnight daily for the next 45 days.
Designed by Italian architect Gio Pagani, the store is a larger version of the Harrods branch in Sardinia.
It features 14 luxury brands, including Audi, Bentley, Buccellati, Graff Diamonds, Chopard and Ferrari. The store also features luxury vehicles, including Rolls-Royce, BMW and Bentley.
“The goal for this ambitious village was to create a really unique space that enhances the environment, adds a desirable ‘wow’ factor, and highlights each luxury brand within a contrasting unexpected temporary space, turning what was originally an anonymous space into one of the world’s most desirable shopping experiences,” said Pagani.
Sheikh Abdullah bin Mohamed bin Saud Al Thani, CEO of QIA, said the store was brought to Doha to coincide with Qatar’s national day celebrations, with a much larger store planned for next year’s national day. 

 

Chanel Pays Record Price for Retail Space

French luxury retailer Chanel SA is paying a record price for retail space in Los Angeles as prime shopping locations in the nation’s major urban areas command rising premiums.

Chanel is purchasing the 11,500-square-foot building at 400 North Rodeo Drive in Beverly Hills for $152 million, or more than $13,000 a square foot, according to people involved in the transaction. That tops the previous high for Southern California of about $10,400 a square foot, set in 2012, for another building on North Rodeo Drive, according to data provided by real-estate firm Real Capital Analytics.
The deal is another sign of the strong interest among retailers and landlords in retail real estate in large urban areas with a dense population of affluent shoppers.
“That’s what people have been willing to pay up for,” said Jim Costello, senior vice president at Real Capital Analytics. “That’s where the millennials are. That’s where the consumers are.”
Buyers have been willing to pay particularly high prices for the most desirable and heavily trafficked destinations where luxury brands can command attention, such as Madison Avenue in New York.
“It’s like buying a very expensive billboard,” said Scott Kalt, a founding partner at Elkins Kalt Weintraub Reuben Gartside LLP, a Los Angeles law firm that represented one of two families in the partnership that sold the property to Chanel.
Chanel, for example, paid more than $31,000 a square foot last year for retail space on Madison Avenue at 64th Street, which is the highest price for any retail space in the nation, according to Real Capital Analytics.
Three other sales in Manhattan this year have topped $14,000 a square foot, the firm’s data show. Prices in the top quartile of sales of retail space have often topped the prerecession peaks in many cities in recent years, according to the firm’s figures, though prices have also fluctuated in some places.
North Rodeo Drive is home to a wide range of luxury retailers, including Cartier, Gucci and Prada. Chanel has rented the property on the corner of Brighton Way for years, according to people familiar with the matter.
“If it’s not the single best corner in Beverly Hills, anyone would list it in the top two or three,” said Ron Goldie, a Los Angeles-area attorney who also worked with one of the families selling the property. “It’s highly visible.” 

 

LVMH’s Fresh opens new London flagship

LVMH-owned skincare brand Fresh has opened a 70 sq m flagship store on Monmouth Street in London’s West End. The opening marks the latest in a line of top brands to take space on the street in the last 12 months, including Larsson & Jennings, Loft Design By…, Pierre Herme and most recently, Club Monaco.

Designed in-house, the Fresh boutique is the second standalone UK store for the brand, which houses the company’s full lifestyle range, including skincare, bodycare, haircare and fragrances.
‘The brand’s arrival plays a great part in our strategy to create a unique shopping destination that appeals to both local and international visitors alike,’ says Charles Owen, Seven Dials Portfolio Executive at Shaftesbury. 

   

Prada opens enlarged and renovated store in Manila

Prada celebrates the reopening of its recently expanded and renovated store inside the prestigious Greenbelt Ayala Center department store in Manila, Philippines.
The space, designed by architect Roberto Baciocchi, covers a total area of approximately 200 square metres on a single level and houses the women’s and men’s leather goods, accessories and footwear collections.
The external façade, of remarkable visual impact, is composed of an interplay of light- boxes, completed by a backlit white canvas curtain enclosed in a crystal box. 

 

Michael Kors opens its largest Japanese flagship store

Michael Kors has opened its largest Japanese flagship store on Chuo Street in Tokyo’s Ginza district. The store is the first in the world to carry every category offered by the global luxury retailer.
The 724 sq m store reflects the new design concept unveiled last year at the Jing’An Kerry Centre in Shanghai, including a shimmering exterior facade inspired by Michael Kors’ signature use of metallics and texture.

The facade comprises luminous screens made of unique, light reflective facets set within a grid of internally lit recesses. In addition, a large-scale branded campaign image covers the balance of the second and third story facade, creating an effect that is elegant and kinetic. 

The ground floor features curated presentations of accessories, including handbags and small leather goods, from the Michael Kors Collecton and MICHAEL Michael Kors labels. Downstairs, the lower level is dedicated to menswear and men’s accessories, making the Ginza flagship the first freestanding Michael Kors store in Asia to offer menswear. 

Women’s ready-to-wear is located on the upper floor in sophisticated rooms designed to complement the Michael Kors Collection and MICHAEL Michael Kors labels. On this floor, customers can browse, try on clothes and consult with the store’s personal stylists in a calm environment and feel completely indulged. This floor also showcases an elevated display of watches, jewellery, eyewear and a selection of the brand’s fragrances. This floor is finished off with a grand shoe salon featuring footwear from both labels.

The store interior reflects the jet set glamour of the brand, and features white marble flooring and custom white painted wood fixtures for a sleek and refined feel. Rice paper accents and framed Macassar wood boxes highlight key products and evoke the elegance of sophisticated Japanese design. Luxe ultra suede fabrics are also used throughout the store to enhance the inviting atmosphere.  

    
   

First Polo Ralph Lauren flagship store in Europe opens in Rome

Ralph Lauren has recently opened its first Polo Ralph Lauren label flagship store in the Italian capital of Rome. The new store cover 465 m² on two floors at the corner of Via del Corso and Via Frattina. The new store also features the Polo Sport line. The label currently has 15 flagship stores globally, 8 of which are directly operated. Further openings are expected in London and Sao Paolo.

  

Polo Ralph Lauren flagship store Rome

20% of Louis Vuitton’s Chinese stores will close next year

Louis Vuitton has recently announced the closure of three China stores, including its first outlet in Gaungzhou. According to sources close to the brand, the luxury retailer is preparing to close several more stores across the country in the coming months.  
Parent company LVMH said that overall sales in Asia fell by more than 9% in its third quarter of trading, with Louis Vuitton China sales “suffering” in particular.  
These closures illustrate the pressure that China’s luxury sector is facing, on the back of a slowing economy, government run anti-corruption and anti-extravagance campaign. Launched in late 2012, the three year political movement has hindered demand for all types of luxury goods in the country. Global brands such as Louis Vuitton are now viewed as commoditised and overpriced among China’s changing, sophisticated consumers.  
While many luxury goods makers have expanded their sites in China over the past decade to appeal to the nouveaux rich, the store closure count is quickly picking up pace across the market.  
“According to my information, 20% of Louis Vuitton’s stores in China will have disappeared by mid-next year: that is a closing rate of about one store per month,” Emmanuel Hemmerle, a leadership consultant told The FT. 
While China’s economic slowdown has hindered Louis Vuitton’s worldwide success, the high-end company still opened a store in Beijing and Hangzhou earlier this year.  
In a statement on Monday, Louis Vuitton said that it “will continue investing in China in the current store network in order to enhance the level of experience we wish to offer to our clients”. 
According to a report by US-based analysis company The Demand Institute and its parent company The Conference Board, overly optimistic growth and consumption projections for China have misled foreign investors. Multinational and luxury brands have been misled into investing too much into the wrong Chinese cities. 
“To a certain extent LV has been suffering from brand overexposure. Having so many stores in China and particularly in these lower-tier cities doesn’t make sense economically but is also not very good for the brand,” said Torsten Stocker, partner at consulting group AT Kearney.   

 

Burberry reports increase in profits and flat revenue

Burberry has reported that pre-tax profit rose by 9% to £154.7 million in the first half of its financial year.
Adjusted profit before tax was £152.9 million compared to £152.3 million a year ago.
However, sales were flat in the six months to 30 September at £1.1 billion.
  

Cartier CEO to step down

Cartier CEO to step down 

He will be succeeded as CEO by Cyrille Vigneron, currently the president of LVMH Japan. 
De Quercize’s resignation is with immediate effect. Richemont said however that he would remain a group executive, taking over the role of chairman of Richemont France. 
LVMH and Richemont had agreed that Vigneron would formally assume his new position on 1 January 2016, Richemont added. 
Prior to joining the LVMH Group, Vigneron worked with Richemont from 1988 to 2013. He worked principally with Cartier, rising to become managing director of Cartier Japan, president of Richemont Japan, and finally, managing director of Cartier Europe. 
“In his capacity as Chief Executive Officer of Cartier, Mr Vigneron will become a member of the Group Management Committee from 1 January 2016. Thereafter, he will be nominated for election to Compagnie Financière Richemont’s Board of Directors in September 2016,” Richemont said. 
Commenting on the changes, Johann Rupert, chairman of Richemont, said: “Stanislas de Quercize has had a superb career to date, having worked with Cartier, Montblanc and Alfred Dunhill prior to taking up positions as Chief Executive of Van Cleef & Arpels and Cartier. I and all my colleagues on the Board, in management and across both Richemont and Cartier, recognise his commitment, work ethic and enthusiasm. We deeply regret that Stanislas has decided to stand down but must accept his decision.
“Cyrille Vigneron is an old colleague and a highly capable and effective leader. We welcome him back to Cartier. I look forward to a smooth transition from Stanislas to Cyrille and know that he will have the full support of Cartier management and employees. I look forward to Cyrille’s contribution to further building Cartier’s reputation as the world’s leading jewellery and haute horlogerie Maison.”
Posted on 9 Nov 2015 08:35 

 

Furla opened a new store on New York’s Fifth Avenue

Italian affordable luxury brand Furla opened a new store on New York’s Fifth Avenue, at 51st Street. The new Furla store features the complete range of products of the brand. The new store carries a limited edition ‘Fifth Avenue’ of handbags and small leather accessories. The new opening marks the beginning of an extended expansion of the brand in the U.S. 

 

Burberry makes key leadership team appointments

Burberry makes key leadership team appointmentBurberry has announced two new appointments within its leadership team.
In November Leanne Wood will take on the newly created role of chief people and corporate affairs officer. Reporting to Burberry chief creative and chief executive officer Christopher Bailey, she will be responsible for Burberry’s corporate affairs and human resources across the world.
Joining Burberry from Diageo where she has been group HR director since 2013, Wood’s prior roles at the drinks business include global talent and organisation effectiveness director and HR director for its various businesses in South East Asia, the UK, Ireland and Africa. She has also worked for Allied Domecq and LEK Strategy Consulting.
Burberry has also announced that Fumbi Chima will be joining the company in November as chief information officer, reporting to chief operating officer John Smith. The role oversees Burberry’s technology division and will include responsibility for the brand’s upcoming technology platform upgrades including SAP.
Chima was previously corporate vice president and chief information officer at Walmart Asia and has also held IT and technology positions at AMEX and JP Morgan. In addition, she has recently been selected as a member of the United Nations Digital taskforce.
Bailey said: “Both Leanne and Fumbi will play key roles in Burberry’s leadership team as we begin the implementation of our plans for increased customer focus and product and brand development in the coming years.”