Tiffany & Co to expand network of stores in China

Tiffany & Co executives are focused on a "retail overhaul" in China, securing prime real estate for several new locations to add to the 39 stores it already has in the country.

Anthony Ledru, Tiffany & Co. Chief Executive, said they have been working over the past two years to secure top locations in the country, with three or four new spaces lined up, including in the Sanlitun fashionable shopping area in Beijing.

He added that other stores in the existing network will be relocated and expanded.

The investments come amid a bounce-back in luxury sales following the lifting of COVID-19 restrictions, prompting a flood of shoppers to high-end stores like LVMH labels Dior and Louis Vuitton.

The sector’s biggest luxury players, LVMH and Birkin bag maker Hermes have benefited most, as reflected in their global sales growth over the first quarter, up 17 percent and 23 percent respectively.

Tiffany, an LVMH-owned label, grew sales to $5.6 billion in 2022 from $3.2 billion in 2020 and is forecast to reach $7.4 billion in 2025.

Sales at bigger rival Cartier came in at 8.48 billion euros last year and are seen reaching 12.2 billion in 2025, according to estimates by HSBC.