Renewed interest in the area has stemmed from a variety of factors.
“Brands are not going to pay a premium for brick-and-mortar locations that have been diluted by online sales,” Spiegelman said. Gene Spiegelman, vice chairman of RIPCO Real Estate, said departures were driven by a rise in e-commerce and high rents in the area, which lowered the profitability of large flagships. Beginning in 2017, brands including Ralph Lauren, Calvin Klein and Gap said they would shut their flagship stores on Fifth Avenue. Many companies began leaving the area even before COVID-related closures cut into sales. “This is after a lot of retailers struggled during the pandemic.” “Fifth Avenue is in the middle of this renaissance,” Hodos said. The development firm SHVO also invested at least $135 million to convert 685 Fifth Avenue into luxury residences managed by the Mandarin Oriental Hotel Group, according to industry estimates.īrookfield Properties is spending $400 million to renovate a 39-story office building at 660 Fifth Avenue. Rolex is in the midst of a renovation of its Fifth Avenue headquarters, which will feature a ground-floor retail store and 25-story glass office tower.
#Flux power series#
The store's reopening is the latest in a series of high-profile investments in the neighborhood, said Richard Hodos, vice chairman of real estate firm JLL’s New York retail team. The group has invested heavily in flagships for other labels including Bulgari, across the street from Tiffany, as well as Louis Vuitton's Place Vendome outpost in Paris. LVMH officials have not made the cost of the revamp public. It involved a redesign of the entire 10-story building led by architect Peter Marino, known for his work on some of the biggest flagship stores in the luxury industry. According to HSBC analysts, the jeweler grew sales to 5.1 billion euros in 2022 from 3 billion euros in 2020 and is forecast to reach 7.4 billion in 2025. The company has pushed Tiffany upmarket, beyond it being a byword for engagement rings. The new flagship is scheduled to open to shoppers on Friday, a key debut for a store that accounted for 10% of Tiffany's global sales before it closed for renovation in 2019. LVMH (LVMH.PA), the world's biggest luxury group and Europe's most valuable company, bought Tiffany in 2021 for $16 billion after an acrimonious legal battle. Hermès opened a new four-story flagship on nearby Madison Avenue in 2022.
Saks is undergoing a $250 to $270 million renovation of its Fifth Avenue flagship, including a remodeled seventh-floor men's department. With the return of tourism to New York after pandemic-related declines, luxury retailers are again betting on refreshed flagships to drive consumer interest and traffic. The district has long been anchored by luxury stores including Tiffany, Saks Fifth Avenue and Bergdorf Goodman. Real estate experts say the flow of cash is part of a bid to re-imagine an area of Midtown that extends from 49th Street to the Plaza Hotel and includes Fifth and Madison Avenues.
NEW YORK, April 24 (Reuters) - The splashy reopening of Tiffany & Co’s flagship store on the corner of Fifth Avenue and East 57th Street is a renovation representing the billions of capital investment in one of New York City’s most iconic shopping districts.
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