# Tiffany, now owned by LVMH, reopens on a Fifth Avenue in flux
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Tiffany & Co. Reopens Flagship Store on Fifth Avenue
Meta Description: Discover the revamped Tiffany & Co store on Fifth Avenue, showcasing LVMH's capital investment in New York's iconic shopping district.
URL: https://financedigest.com/tiffany-now-owned-by-lvmh-reopens-on-a-fifth-avenue-in-fluxhtml

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By Katherine Masters and Mimosa Spencer

NEW YORK (Reuters) – The splashy reopening of Tiffany & Co’s [flagship](https://www.financedigest.com/mobey-forum-calls-on-financial-services-industry-to-address-evolving-business-models.html) 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.

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. The district has long been anchored by luxury stores including Tiffany, Saks Fifth Avenue and Bergdorf Goodman.

With the return of tourism to New York after pandemic-related declines, [luxury retailers are again betting on refreshed flagships to drive](https://www.financedigest.com/basic-material-luxury-stocks-drive-european-shares-to-a-third-day-of-losses.html "Basic material, luxury stocks drive European shares to a third day of losses") consumer interest and traffic.

Saks is undergoing a $250 to $270 million renovation of its Fifth Avenue flagship, including a remodeled seventh-floor men’s department. Hermès opened a new four-story flagship on nearby Madison Avenue in 2022.

LVMH, the world’s biggest luxury group and Europe’s most valuable company, bought Tiffany in 2021 for $16 billion after an acrimonious [legal battle](https://www.financedigest.com/u-s-abortion-ruling-ignites-legal-battles-over-state-bans.html "U.S. abortion ruling ignites legal battles over state bans"). 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](https://www.financedigest.com/utilising-digital-tools-to-close-the-finance-and-accounting-skills-gap.html "Utilising digital tools to close the finance and accounting skills gap") for renovation in 2019.

The company has pushed Tiffany upmarket, [beyond it being a byword for engagement](https://www.financedigest.com/boost-for-brexit-britains-fintech-sector-as-fca-moves-to-engage-beyond-london.html "Boost For Brexit Britain’s Fintech Sector As Fca Moves To Engage Beyond London") rings. According to HSBC analysts, the jeweler grew sales to 5.1 billion [euros in 2022 from 3 billion](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet") euros in 2020 and is forecast to reach 7.4 billion in 2025.

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](https://www.financedigest.com/making-sure-you-are-compliant-when-working-in-the-finance-industry.html "Making Sure You Are Compliant When Working in the Finance Industry").

LVMH officials have not made the cost of the revamp public. The [group has invested](https://www.financedigest.com/simplybiz-group-launches-complimentary-end-to-end-investment-advice-system.html "SimplyBiz Group launches complimentary end-to-end investment advice system") heavily in flagships for other labels including Bulgari, across the street from Tiffany, as well as Louis Vuitton’s Place Vendome outpost in Paris.

The [store’s reopening is the latest in a series of high-profile investments](https://www.financedigest.com/uk-budget-fashion-chain-primark-to-invest-140-million-stg-in-stores.html "UK budget fashion chain Primark to invest 140 million stg in stores") in the neighborhood, said Richard Hodos, vice chairman of real estate firm JLL’s New York retail team. Rolex is in the midst of a renovation of its Fifth Avenue headquarters, which will feature a ground-floor [retail store](https://www.financedigest.com/revolutionising-retail-zappers-smart-payment-solution-enables-stores-to-instantly-understand-and-reward-shoppers.html "REVOLUTIONISING RETAIL; ZAPPER’S SMART PAYMENT SOLUTION ENABLES STORES TO INSTANTLY UNDERSTAND AND REWARD SHOPPERS") and 25-story glass office tower.

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](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer"), according to industry estimates.

Brookfield Properties is spending $400 [million to renovate a 39-story office building](https://www.financedigest.com/ford-to-invest-around-300-million-to-build-electric-car-parts-at-uk-plant.html "Ford to invest around 0 million to build electric car parts at UK plant") at 660 Fifth Avenue.

“Fifth Avenue is in the middle of this renaissance,” Hodos said. “This is after a lot of retailers struggled during the pandemic.”

Many [companies began leaving](https://www.financedigest.com/unilever-cfo-pitkethly-to-leave-company-by-may-2024.html "Unilever CFO Pitkethly to leave company by May 2024") the area even before COVID-related closures cut into sales. Beginning in 2017, brands including Ralph Lauren, Calvin Klein and Gap said they would [shut their flagship stores](https://www.financedigest.com/dominos-pizza-to-shut-27-stores-in-denmark-australian-construction-and-supply-arm.html "Domino’s Pizza to shut 27 stores in Denmark, Australian construction and supply arm") on Fifth Avenue.

Gene Spiegelman, vice chairman of RIPCO [Real Estate](https://www.financedigest.com/the-professionals-at-real-estate-funding-solutions-helping-you-find-success-with-commercial-real-estate-loans.html "The Professionals At Real Estate Funding Solutions Helping You Find Success With Commercial Real Estate Loans"), said departures were driven by a rise in e-commerce and high rents in the area, which lowered the profitability of large flagships.

“Brands are not going to pay a premium for brick-and-mortar [locations](https://www.financedigest.com/five-reasons-you-need-a-store-locator-and-how-it-can-improve-sales.html "Five reasons you need a store locator and how it can improve sales") that have been diluted by online sales,” Spiegelman said.

Renewed interest in the area has stemmed from a variety of factors. Both Spiegelman and Hodos said that [retail rents have dropped to about $2,000 per square foot](https://www.financedigest.com/putting-your-right-foot-forward-the-secret-of-successful-retail-bank-footprints-is-in-the-data.html "Putting your right foot forward – the secret of successful retail bank footprints is in the data") for ground-floor spaces.

While high, it’s a decline from 2015, when Spiegelman said the [luxury](https://www.financedigest.com/mike-ashleys-frasers-buys-thgs-portfolio-of-luxury-goods-websites.html) retailer Bulgari paid $5,000 per square foot for a lease extension on Fifth Avenue.

Tourism is also recovering. There were 47.3 million domestic visitors to New [York in 2022 and 9.4 million international travelers, versus 53.1 million domestic tourists and 13.5 million international visitors in 2019, according to the New York City](https://www.financedigest.com/codex-raises-over-190000-usd-at-live-charity-auction-at-ethereal-summit-in-new-york-city.html "Codex Raises Over 0,000 USD at Live Charity Auction at Ethereal Summit in New York City") Tourism and Conventions bureau.

Chinese tourists, [key drivers](https://www.financedigest.com/packaging-and-textile-industries-key-driver-for-digital-printer-market-demand-2021.html "Packaging And Textile Industries : Key Driver For Digital Printer Market Demand 2021") of luxury purchasing, are returning at a slower pace than other visitors, and office attendance in New [York](https://www.financedigest.com/coindesk-and-nycedc-team-up-to-launch-first-ever-blockchain-week-in-may-2018.html) is at 52% on most weekdays compared to around 83% pre-pandemic, according to JLL estimates.

Those factors have left the area with some uncertainty, mirroring [global trends](https://www.financedigest.com/healthcare-information-systems-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Healthcare Information Systems Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") in retail real estate. In its market outlook for 2023, CBRE said that [persistent inflation and labor shortages](https://www.financedigest.com/u-s-job-growth-regains-momentum-worker-shortages-persist.html "U.S. job growth regains momentum; worker shortages persist") would keep construction costs high, limiting inventory and driving up demand for space.

Still, [real estate](https://www.financedigest.com/from-static-office-to-dynamic-brand-hq-five-steps-to-reviewing-your-real-estate.html "From static office to dynamic brand HQ: Five steps to reviewing your real estate") experts say the recovery along Fifth Avenue is notable. The availability rate for retail frontage from 49th to 59th Street has dropped from 13.8% in the first quarter of 2019 to 3.8% in the first quarter of 2023, according to [data from real estate firm](https://www.financedigest.com/sterling-holds-firm-after-uk-jobs-data-muddies-rate-outlook.html "Sterling holds firm after UK jobs data muddies rate outlook") CBRE.

Hodos said that Esprit and Glossier are among the brands seeking to [open stores](https://www.financedigest.com/lego-posts-strong-growth-on-robust-demand-new-store-openings.html "Lego posts strong growth on robust demand, new store openings") on the avenue.

(Reporting by Katherine Masters, Mimosa Spencer and Silvia Aloisi; Editing by Anna Driver)


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