What’s going on? Tiffany & Co. is planning to cut its Shanghai flagship store in half, according to a Bloomberg report. The decision comes as luxury sales in China have plummeted and luxury brands are reevaluating their presence in the region.
Details The downsizing affects Tiffany’s two-story store at Hong Kong Plaza in Shanghai, which opened to much fanfare in 2019. LVMH’s watch and jewelry division, which includes Tiffany, saw revenue fall 3% and recurring profit fall 19% for the first half of 2024. Despite the downsizing, Tiffany’s popular Blue Box Café will remain open.
The reason? The departure highlights growing pressure on luxury brands as China’s economic slowdown and sluggish real estate market make consumers more price-conscious. Tiffany’s move reflects woes across the industry, particularly affecting LVMH’s jewelry unit, which has missed sales targets amid increased competition and seen staff turnover.