The new owners want to change not only the appearance of the stores of the legendary brand, but also reconsider its very idea, significantly increasing the authority of Tiffany.
The French luxury goods group is planning a major overhaul of Tiffany & Co's extensive product line to focus on gold and gemstones, with less focus on silver. The appearance of stores will also be updated and the presence in Europe and Asia will be increased.
To date Tiffany owns about 320 stores, of which about a third are in the US. Most of them are frankly outdated, in need of major repairs and rethinking. And the new leadership seems to be looking into that possibility. At least six unnamed sources reported such plans to Reuters at once. Expected that LVMH will scrutinize store operations and locations and may use its influence to secure better leases or find better locations.
As for jewelry, Tiffany's range of products ranges from $150 silver pendants to hundreds of thousands of dollars worth of diamond necklaces. Silver jewelry is in high demand among young, low-income buyers who want to join the legendary brand, and bring the company up to 90% in gross income. But at the same time, they are also depriving Tiffany of the exclusivity so important to LVMH.
French billionaire businessman Bernard Arnault, who is the head of the conglomerate, has already said he wants to raise the profile of Tiffany, even if it takes time. The transition to a higher price segment will allow the brand to fit organically into the LVMH family. And, according to Arno, the American jewelry brand can count on comprehensive support.
Tiffany, founded in 1837 in New York, has proven to be much more resilient to the coronavirus pandemic than originally expected. Despite a sales slump at the start of the crisis and poor management, the company managed to bounce back thanks to an increase in online sales in China in the last quarter.