New York—Just in time for its 175th anniversary, Tiffany & Co. plans to open its third Manhattan store, a 7,000 square foot floor-through boutique that combines 97 Green Street and 106 Wooster, in 2012.
According to Tiffany’s executives, the location is particularly apropos considering the original Tiffany & Co., moved to nearby Prince Street at Broadway in the 1850s.
”Opening a store in the neighborhood where Charles Lewis Tiffany developed his growing enterprise is a wonderful way to celebrate our anniversary,” said Beth O. Canavan, executive vice president of Tiffany & Co. “Since we were last in SoHo, Tiffany has circled the globe, creating a style that is legendary. We’re thrilled to return to build an elegant new store that is truly home to Tiffany’s great heritage.”
But the location is significance has more to do with Tiffany’s future direction than a sentimental one. The Soho neighborhood is a prime destination for tourists, especially international ones.
Getting that international connection is more important than ever for Tiffany & Co. While Tiffany & Co., which reported late last month a 30% increase in its second quarter profit, is benefitting from a luxury rebound in spending, tourist sales are an important source of new business.
International Sales Soon to Outpace U.S.
Its flagship Fifth Avenue store, some 45,500-square feet of it, accounted for about 8% of sales. Tiffany has another location at37 Wall Street, but its New York, even its U.S. stores, will soon be eclipsed in sales.
Anges Cromback, president of Tiffany France, told Bloomberg News on Thursday that soon most of the revenue of the world’s second-largest retail jeweler will come from outside its home base, the United States.
Sales in Europe, for example, are being buoyed by rising numbers of luxurygoods-seeking tourists from China and Russia.
“We have very good average spend with Chinese,” some of whom come toFrance’s capital for only one day during European tours, Cromback said. “Tiffany’s international business will soon be more important than theU.S.”
This year Tiffany’s revenue from theUnited Statesdropped to about half the total, down from 61% four years earlier. Patrick McGuinness, chief financial officer, said at last month’s earnings report that full year sales inEuropewill probably increase 20%.
Tiffany now operates 31 stores in Europe and will open its fourth store inFranceand first outsideParisin Nice as soon as March, Cromback said. Its Place Vendome location is set for renovation in 2013, too.
“The further south you go, the more people like jewelry and like to show it off,” she said.
Tiffnay also will be looking for potential locations in Belgium, the Netherlands and Luxembourg.