Editor’s Note
This article discusses Tiffany & Co.’s reported plan to halve the size of its Shanghai flagship store, a move reflecting broader challenges in China’s luxury retail sector amid subdued consumer spending.
Amid deepening sluggish domestic consumption in China, Tiffany & Co., the jewelry brand under LVMH Moët Hennessy Louis Vuitton, is downsizing its Shanghai store by half.
According to some foreign media reports on the 5th (local time), Tiffany plans to reduce the size of its 1,115㎡ flagship store in Shanghai by half.
Tiffany opened its flagship store on the second floor of Hong Kong Plaza, located in Shanghai’s bustling shopping district, with a grand opening event at the end of 2019.
However, with a recent sharp decline in sales, the company is expected to vacate about half of the store by the end of this month.
The Lai Fung Group, which owns the shopping mall, is reportedly in negotiations with new tenants.
The Blue Box Cafe, Tiffany’s first in China and the third in the world, is expected to remain open even after the store downsizing. This cafe is currently the largest in Asia.
Regarding Tiffany’s move, analysis suggests it shows the increasingly difficult business environment for global luxury brands amid China’s economic slowdown and real estate market slump.