10,799.6536.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

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.

PTI|
Last Updated: Jan 04, 2020, 01.24 PM IST
0Comments
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 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.
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.

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

of 6
Next
Prev
Play Slideshow

​The Big Buyout

26 Nov, 2019
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.
Next

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.

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.

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.

Also Read

Louis Vuitton takes Chinese e-tailer to HC over 'fakes'

Louis Vuitton India net profit jumps over 24% in FY19

Deepika Padukone creates history as first Bollywood star to feature in a global Louis Vuitton campaign

Louis Vuitton removes Michael Jackson-inspired pieces from 2019 menswear collection

Louis Vuitton India retail profit jumps 50% in FY17

Louis Vuitton goes digital, turns to Facebook Bot to chat with customers

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Popular Categories


Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service