Page 389

T O D ’ S S PA

STORE NETWORK RESTRUCTURING ■ 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 (Tod’s has 82 directly operated stores and 34 franchised stores in the region as at 31 December 2017 - 30.0% of Tod’s store count). Also, the changing retail landscape, particularly the declining traffic for many department stores and malls in the US are of concern to the luxury retailers.

STORE COUNT GROWTH BY FORMAT: JUL 16 - JUL 17

Dominant store formats (20-35% of market) Other store formats (<10% of market)

Store Count Openings / Closing

10%

8.7%

6.2%

5.2%

5%

8.0% 2.9%

5.7%

1.2%

0%

1.3%

5%

5.0%

6.5%

10% 15%

5.4%

1.7%

3.0%

7.1% 11.8%

Standalone

Net openings (#)

18

Dept Store -27

4.5%

Mail -34

12.5% Airport/Port

-8

-17

Store Closures Jul 16 - Jul 17

6.8% 9.8%

Hotel/Casino

New Store Openings Jul 16 - Jul 17

1.3%

Number of Net Store Openings 16 - Jul 17

7.0%

Dutyfree/ downtown

Total

-14

-82

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

Bernstein Proprietary Store Count For Luxury Companies - July 2017

389

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Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018