Louis Vuitton to shut Hong Kong store due to heavy rent, estimated around $642K per month
The high-end Times Square mall is often targeted by democracy protesters.
By PTI |
HONG KONG: Luxury brand Louis Vuitton is closing a major store in a high-end Hong Kong shopping centre often targeted by democracy protesters, local media reported. The international retailer plans to shut its shop in the financial hub's Times Square mall after its landlord, Wharf Real Estate Investment Corporation, refused to lower the rent, according to the South China Morning Post's report Friday.
The store in the commercial heartland of Causeway Bay - one of the brand's eight shopfronts in the city - occupies 10,000 square feet of prime second-floor space in the mall.
Monthly rent reportedly costs an estimated HK dollars 5 million (USD 642,000) according to industry consultants.
Louis Vuitton Hong Kong, Times Square and Wharf have not responded to enquiries from AFP.
The news of the potential closure came after the Hong Kong government released its latest retail sales figures, posting its tenth consecutive monthly drop in November 2019 and striking a year-on-year decline of over 23 per cent.
Jewellery, watches, clocks and luxury gifts formed the most seriously hit category, with a year-on-year plunge of 43.5 per cent.
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The government blamed violent protests for disrupting tourism and affected consumption sentiments.
Tiffany’s Blue Now Belongs To LVMH; Ambani, PeeCee, Gaga's Connections To The Iconic Brand
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French luxury giant LVMH, on Monday, acquired iconic American jeweller Tiffany for $16.2 billion. The acquisition, which took just over a month and three revised bids to get done, is the biggest-ever deal for the French group owned by Bernard Arnault.
According to a report in news agency Reuters, Tiffany was codenamed "Tea" and LVMH was "Latte" during the talks that led to the takeover.
Reuters also reported that LVMH's 70-year-old billionaire boss was himself 'focused on ensuring he was getting control of Tiffany's most valuable assets: all the patented elements that came with the Tiffany brand, notably its robin's egg blue boxes'.
The third-richest man in the world, Arnault, emphasised on the importance of the blue in an interview with the news agency, saying, "We're the owner of a colour. It's a pretty rare thing."
LVMH had forayed into high-end jewellery in 2011, when it acquired Italian jeweller Bulgari.
French luxury giant LVMH, on Monday, acquired iconic American jeweller Tiffany for $16.2 billion. The acquisition, which took just over a month and three revised bids to get done, is the biggest-ever..
Read More
Earlier this year, the iconic jeweller was making national headlines due to reports of it coming to India in partnership with India's richest man, Mukesh Ambani.
According to news reports, Ambani-led Reliance Brands has plans to bring the iconic blue box to Delhi and Mumbai by mid-2020.
'Quantico' star Priyanka Chopra also has a personal connect with the brand. Not only did the star host her bridal shower at the the Blue Box cafe, situated inside the brand's flagship store, but her singer-hubby Nick Jonas also shut down the Fifth Avenue outpost to pick the perfect 4-carat ring for her.
Earlier this year, the iconic jeweller was making national headlines due to reports of it coming to India in partnership with India's richest man, Mukesh Ambani.
According to news reports, Amban..
Read More
Tiffany's storied history dates back to 1837, when the first store opened on Broadway in New York. Founded by Charles Lewis Tiffany, the iconic brand initially sold stationary, handkerchiefs and other finery.
On opening, it became the first company to clearly mark prices on its products, leaving no option of bargaining. It also started a new norm by only accepting payments in cash.
Over the next decade, the company shifted to jewellery. In 1848, it started acquiring exotic European collections and crown jewels, including diamonds worn by Marie-Antoinette.
Almost unstoppable, two years later, Tiffany had opened a store at rue de Richelieu in Paris. This expansion continued, with a London store in 1868, and eventually a watch factory in Geneva, a few years later.
The legendary brand saw a new direction with Charles's painter-son, Louis Comfort Tiffany, becoming the company's first official design officer. At the end of the 19th century, stained glassworks and lamps by Tiffany Jr. became synonymous with the 'Gilded Age' in America, with some of them even being installed at the White House. They were later removed early in the 20th century.
(Image: AP)
Tiffany's storied history dates back to 1837, when the first store opened on Broadway in New York. Founded by Charles Lewis Tiffany, the iconic brand initially sold stationary, handkerchiefs and othe..
Read More
The rise of Tiffany parallels that of New York. The American jeweller set up its flagship store on Fifth Avenue in 1940, creating a landmark that attracts tourists even today. This store now accounts for almost 10 per cent of the brand's overall sales.
Over time, the aspirational value of the brand increased with the emergence of America’s high society as its customers. From the Kennedys and Richard Nixon to Elizabeth Taylor and Richard Burton, the brand became synonymous with classy indulgence.
In 1862, President Abraham Lincoln purchased a Tiffany seed pearl necklace and earrings for his wife for the inaugural ball.
(Image: AFP)
The rise of Tiffany parallels that of New York. The American jeweller set up its flagship store on Fifth Avenue in 1940, creating a landmark that attracts tourists even today. This store now accounts..
Read More
The brand's flagship store also houses the famous Tiffany yellow diamond, that Charles bought in 1878 for $18,000. The 287.42-carat diamond, said to be one of the world’s finest gemstones, was cut into a cushion-shape of 128.54 carats, and named the 'Tiffany Diamond'.
Over 300 guests throng the store each day for a glimpse of the diamond.
The rare stone has only ever been worn three times in history. The most-recent being Lady Gaga, who arrived at the Oscars this year with the diamond around her neck.
The gem was worn for the first time at the 1957 Tiffany Ball in Newport, Rhode Island by Mary Whitehouse. Following her, Audrey Hepburn became the second person to be granted permission to wear the diamond, for promotion of 'Breakfast at Tiffany's'. The actress wore the stone in a Jean Schlumberger necklace.
(Image: Reuters)
The brand's flagship store also houses the famous Tiffany yellow diamond, that Charles bought in 1878 for $18,000. The 287.42-carat diamond, said to be one of the world’s finest gemstones, was cut in..
Read More
In 1961, Tiffany & co made its cinematic debut with another icoc, Audrey Hepburn. 'Breakfast at Tiffany’s', the first movie ever filmed at Tiffany’s flagship store, continues to be a classic till date.
The store went on to feature in other films including 'Sleepless in Seattle' and 'Sweet Home Alabama'.
In 1961, Tiffany & co made its cinematic debut with another icoc, Audrey Hepburn. 'Breakfast at Tiffany’s', the first movie ever filmed at Tiffany’s flagship store, continues to be a classic till dat..
The Times Square mall has been a popular target of "Shop With You" rallies when protesters would gather to chant slogans and march, hoping to force shops to close down and impose economic pressure on the government.
In the third quarter last year, LVMH, the parent group of Louis Vuitton, reported a better-than-expected overall performance but a sales revenue drop of 25 per cent in Hong Kong.
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Luxury brands in Hong Kong have been relying heavily on a large influx of mainland Chinese tourists, which on the other hand has been a problem complained by local residents for years.
According to the latest figures released by the Hong Kong Tourism Board, only 2.65 million people visited in November 2019, a decline of 56 per cent from the same period last year.
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Hong Kong has been battered by protests for seven months, which from time to time fell into violent clashes between protesters and riot police.
The demonstration was first triggered by a proposal to allow extraditions to mainland China. It has morphed into a larger revolt for democratic freedom and against China's control over the semi-autonomous city.
