Editor’s Note
This article examines the unexpected commercial challenges the Paris 2024 Olympics pose for local luxury retailers, prompting major players like LVMH and Cartier to strategically shift focus to neighboring European markets.
The Paris 2024 Olympics will present some difficulties for luxury brands located in the region because, contrary to what one might think, crowds and street closures can lead to a decrease in sales. Therefore, LVMH and Cartier are betting on locations in nearby European cities.
Cartier’s CEO, Cyrille Vigneron, said that activity in France in this sector is likely to face some difficulties; however, tourist activity in places like London, Milan, or Barcelona will see an increase in sales during the event.
This comes after a report commissioned by Paris 2024, which pointed out the possibility of a “displacement effect”, meaning that tourists who had planned to go to the host city of the Olympic Games might go elsewhere.
Meanwhile, the conglomerate of the world’s richest man and sponsor of the Olympic Games, LVMH will also seek locations outside Paris, based on experiences from previous editions in London and Beijing.
Nicolas Bos, CEO of Van Cleef & Arpels, said that the Olympic Games, taking place from July 26 to August 11, will not be the best time to organize high jewelry events in Paris, although stores will remain open to welcome sports fans.
Furthermore, pre-Games activities have been affected by the preparations. The Federation de la Haute Couture et de la Mode has moved haute couture fashion shows forward by one week to avoid future complications related to traffic congestion.
Following the tourist decline in the UK due to the end of tax-free shopping, London retailers hope to capture business from Paris. Iconic department stores like Harrods and Selfridges are preparing to receive the tourist “halo” caused by the Paris 2024 Olympic Games.
For their part, American tourists planning to travel to the Games intend to extend their stay to visit other European countries, according to the travel agency eDreams.