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T I F FA N Y & C O [ T I F : U S ]

STORE NETWORK RESTRUCTURING â–

Weakness in luxury spending in recent years has resulted in many luxury operators restructuring their stores to deal with previous over-expansion in footprint, especially in the Greater China region (Tiffany only has ~10% of its stores located in China). Additionally, the changing retail landscape, particularly the declining traffic for many department stores and malls in the US are of concern to the luxury retailers.

LUXURY STORE FORMATS ACROSS CITIES (% OF TOTAL SHARE) Mainly Standalone Stores Traditional Luxury Capitals, develop nations

100%

Mainly in Dept Stores Japan / Korea

Mainly in Manila Up-and-coming Luxury Hotspots, developing countries

Standalone

80%

Dept Store

60%

Hotel/Casino

40%

Mail Dutyfree/Downtown

20% 0.0%

Airport/Port bal Glo

s k don Pari oscoww Yor Milan Lon M Ne

ul* an* kyo aka Seo Bus To Os

ei ng re as ng ok hai du ng bai Taip Beiji ngapoas Vegng Ko angkhang heng ngya Du B S C She L Ho Si

cau Ma

Source: Bernstein Proprietary Store Count For Luxury Companies – July 2017

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Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018