Issue 161 February 2013 Luxury Briefi Ng.

Issue 161 February 2013
luxury
briefing.
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Jewellery special: Bec Astley
Clarke, Argyle Pink Diamonds,
Harry Winston New voices of
Dunhill unveiled as luxury
menswear sector outperforms
Technology v enchantment:
brands must capture meaning to
survive Nick Foulkes: characters
still count in the corporate age
Yachts getting bigger, luxury
car sales all-time high M&A
buzz… New York trends: fine
art & blowdry bars
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Copyright FMS Publishing 2013
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required reading
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Luxury Briefing
Issue 161
RETAIL PROPERTY
London
New York
Looking forward to lucky 2013: we’re fascinated to see what Baccarat will do
with its huge new flagship store, opening at 635 Madison Avenue in May (up the
street from its current location). Baccarat says it will be a ‘landmark of luxury’.
Also on Madison Avenue: Prada’s 57th Street store, currently under renovation,
will have a grand opening in the spring.
On Fifth Avenue, Lord & Taylor is expanding its already healthy shoe
department to a grand level, reflecting a general influx of boutiques and
department expansions devoted to shoe retailing. C Wonder is moving to
155 Fifth Avenue in Flatiron.
In Herald Square, the Louis Vuitton boutique has reopened inside Macy’s.
Times Square’s Sephora has completed its amazing renovation, and now
features an interactive nail workshop, and stations for customised make-up.
In Chelsea/Meatpacking, Inglot has added an Artist Loft to its shop at
75 Ninth Avenue. And Joie’s third store in the city will be located at 429 West
14th Street. This is clearly a shop on the rise, offering style that is reminiscent
As retailers on the high street fall like ninepins, rumours
persist that at least one high-end brand faces a very
challenging Q1 2013. But, in time-honoured fashion,
here are some other, more positive predictions for 2013.
The superbrands will seek even larger stores within
the 100% prime locations and it is hoped that the
independents will benefit, securing key money premiums
to finance their relocations. International groups will
partner with emerging niche brands to finance expansion
strategies and extend their own retail portfolios.
‘St James’s’ will emerge as a credible alternative to
Mayfair, as The Crown Estate finances the transformation
of the area. The arcades of Mayfair and St James’s will
provide niche retail locations and accessory boutiques
for gift and gilt purchases. In Mayfair, Grosvenor has
leased one of the stunning maison buildings to bespoke
jeweller Jessica McCormack whose pieces have already
been cited as collectables by none other than Sothebys.
The two other beautiful former houses are under offer
at a time when Oscar de la Renta and Céline are also
endorsing the area with forthcoming launches.
Westfield London – The Village - will go from
strength to strength, although the forthcoming tenantonly break options may be the litmus test of the long-term
success. Covent Garden will find its place within the
luxury and high-end retail hierarchy within London.
The new occupant of the Rugby building in King Street
will be seen as a benchmark letting.
The City of London and Royal Exchange could provide
a valuable outpost point of sale, particularly for watches
and jewellery. Omega, Watchfinder (vintage watch
specialist) and other retailers in these categories were
looking to expand their offers.
Sloane Square will greet a new luxurious brand to
replace some of the first-generation leasings. Conduit
Street will, at last, provide a natural pedestrian route
between Bond Street and Regent Street. The arrival
of John Varvatos and further flagship leasing at
50-51 Conduit Street will focus the attention of others,
particularly as the retail rents sit at the lowest end of
the scale in comparison with other Mayfair locations.
Yes, somebody will pay £10m key money to secure
the best watches and jewellery site on ‘Bond Street’.
And finally brands to watch (avoiding the obvious) for
the New Year: Roxsanda Ilincic, Richard James, Nicholas
Kirkwood and Jessica McCormack.
A very happy and prosperous New Year.
KEITH WILSON, WILSON MCHARDY
Tel: +44 (0)20 7439 1666
of southern California but completely right in New York. Look for more
openings around the country this year. Patagonia’s debut in Meatpacking,
414 West 14th Street, is significant: when a number of the pioneering designers,
including Stella McCartney, left this district last year, some thought it was
the death knell of Meatpacking retail. Instead, the opening of Patagonia, near
Alice & Olivia, has created a haven for better fashion alongside such haute
designers as Christian Louboutin. Retail democracy at its best!
The opening of Dover Street Market in Murray Hill, 160 Lexington
Avenue, is the brainchild of Comme des Garçons’ Rei Kawakubo. Dover Street
Market’s London flagship has become the headquarters for high-fashion and
more esoteric apparel lines. And I can’t wait to see if history repeats itself, and
Murray Hill will attract other designers as Dover Street did.
In SoHo, Madrid’s Uno de 50’s exclusive accessories (only 50 of each style)
are now at 135 Prince Street. Look for Joseph to return to the neighborhood
this year. Proenza Schouler is looking, likely on Greene Street, for its second
shop in the city. Equipment’s long-awaited boutique at 110 Wooster Street has
debuted to rave reviews.
In Nolita/Lower East Side/FiDi, the owners of Pier 17 at the South
Street Seaport have announced plans to remake the centre into a streetscape
featuring luxury tenants, including a gourmet food market.
New York Trends
1: Artcomers
Fine art is an important part of New York’s homes – and several newcomers are
enhancing the scene. Emmanuel Perrotin and Dominique Lévy will open galleries at
909 Madison Avenue, joining an exceptional group of relative newcomers that includes
LUMAS at 1100 Madison and London’s Rebecca Hossack at 262 Mott Street.
2: Blowdry bars
Whether your favourite is Blow on West 14th Street, Drybar at several locations,
or Fix on Lexington Avenue, the blow-dry bar is one of the great trends around town,
perfect for our busy professionals. Next up, Rachel Zoe’s DreamDry, opening shortly
in Flatiron.
FAITH HOPE CONSOLO, CHAIRMAN THE RETAIL GROUP
DOUGLAS ELLIMAN REAL ESTATE
Tel: 001 212 418 2000 e: fconsolo@elliman.com
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Issue 161
Luxury Briefing
RETAIL PROPERTY
AUTOLUXE
Europe//Rome
Best luxury car?
Along with Milan, Rome is the most important
commercial and fashion city in Italy. Several major
luxury fashion houses and jewellery chains are
headquartered or were founded in the city, including
Valentino, Bulgari, Fendi, Laura Biagiotti and Brioni.
VIA DEI CONDOTTI
Via dei Condotti is the most prestigious and
expensive luxury street in Rome, home to brands
including Dior, Gucci, Valentino, Bulgari, Burberry
and Louis Vuitton. The buildings on the street are
mostly owned by independent landlords and Roman
families. Some of the retailers own their buildings,
and there are a few institutional landlords. The street
is in constant high demand by luxury retailers who
are looking for a presence in Rome, and this has
caused high levels of key money being paid.
Moncler replaced Yves Saint Laurent on the corner
of Via dei Condotti and Piazza di Spagna, taking a
total of 120 sq m. Jimmy Choo signed the old Gucci
in 2008, a 50 sq m store. Ermenegildo Zegna signed
a 400 sq m store from Campanile in 2010. In 2009
Bally took over from Fornarina to expand its space.
Loro Piana took over from Modigliani, also in 2009.
Giorgio Armani expanded into La Perla to increase
the size of its store.
PIAZZA DI SPAGNA
Piazza di Spagna is a big tourist hub that connects
Via del Babuino, Via dei Condotti, Via Borgognona
and Via Frattina. It is home to the famous Spanish
Steps. Chanel and Longchamp both signed on
the square in 2012, taking 400 sq m and 190 sq m
respectively. Loewe has signed 340 sq m, replacing
both Barcaccia and Gianfranco Ferre.
VIA DEL BABUINO
This long street is strongest at the end closest to
Piazza di Spagna and the pitch becomes weaker
further towards Piazza del Popolo. Retailers such as
Tiffany & Co, Chanel, Miu Miu and Etro are located
here. Anteprima replaced Angelo di Nepi. Haussman
& Co signed Pomellato at Via del Babuino 63 with
260 sq m. Pinko replaced Nicola di Castro in 2010,
taking 190 sq m. Moschino has recently signed the
store previously occupied by Tad.
VIA BORGOGNONA
Historically, this has been a quiet street, but with such
high demand and exorbitant financial conditions on
the other luxury streets, premium retailers have chosen
this street as a more affordable alternative. Stella
McCartney, Laura Biagiotti, Balenciaga, Sportmax,
Ladurée and luxury truffle concept Il Bianco e Il Nero
Il Mondo del Tartufo have all recently signed here.
PIAZZA SAN LORENZO IN LUCINA
This is a square just off mass market street Via del
Corso and close to the end of Via dei Condotti.
Louis Vuitton signed a space previously an old cinema
in 2009 and opened in 2012, totalling 2,700 sq m.
Burberry also opened in 2012, a 172 sq m space.
La Martina will be replaced by Yves Saint Laurent.
ANDREW BATHURST, DIRECTOR
HARPER DENNIS HOBBs
Tel: +44 (0) 207 462 9100 e: andrewbathurst@hdh.co.uk
The newly revised Range Rover has been named ‘Best Luxury Car’ by consumer
motoring magazine What Car? Available with a choice of three engines
including an impressively frugal TDV6 diesel, it was praised by the judges
for its ability to combine the merits of an SUV with those of the finest luxury
limousines, allowing its owners “to traverse extreme terrain and ferry their
family and all its paraphernalia around in lavish comfort and convenience.”
Freddy Mercury’s Rolls-Royce
Freddy Mercury’s 1974 Rolls-Royce Silver Shadow has been sold for £74,600
- nearly six times the estimate - by Coys Auctioneers at the Autosport
International in Birmingham. According to Coys, the Queen frontman’s
car was sold in excellent condition, finished in silver with a grey leather
interior. The car was originally purchased by the legendary rocker’s company
Goose Productions in 1979 and used by him until his death in 1991. A letter
accompanies the lot certifying that Mercury, who did not have a driving
licence, used the car personally, driven by three of his trusted chauffeurs.
Footnote
Research findings from
automotive-research firm JATO
Dynamics state that premium
car sales worldwide have grown
by an average of 13% over the
last four years, with global sales
of BMW, Audi, Rolls-Royce,
Bentley and Mercedes-Benz
reaching an all time high.
New luxury models arrive in Detroit
Bentley has revealed the world’s fastest four-door drop-top, the
202mph Continental GT Speed Convertible, at this year’s North American
International Auto Show in Detroit. Bentley’s latest model shares its 616bhp
W12-engine with the recently launched GT Speed Coupe and is capable of
0-62mph in just 4.1 seconds. Power is sent to all four wheels via an eightspeed automatic gearbox, while fuel economy has been improved by up to
15% compared to the previous model, now at 19mpg.
Mercedes-Benz also chose the Detroit show to unveil its new CLSinspired CLA-Class four-door coupe. Entering the Mercedes line-up beneath
the C-Class at a starting price of around £25,000 in the UK, the new model
marks entry into a new segment for the German luxury car-maker. Keen to
address the increased worldwide demand for smaller luxury cars, Dr Dieter
Zetsche, Chairman of the Board of Management at Daimler AG and Head
of Mercedes-Benz Cars, said, “The CLA is a car that does not confuse
‘middle range’ with ‘middling quality’. Its sporty design underscores the
sporty side of the Mercedes-Benz brand.” The following week, the CLA-Class
made its world premier at the 2013 Berlin Fashion Week, as part of a large
marketing campaign designed to target younger, growth markets.
The Detroit show also marked the unveiling of Lexus’ new IS saloon,
the new BMW 4 Series coupe and Centenary Edition versions of the
Aston Martin DB9, Vanquish, Vantage and Rapide.
JLR spearheads luxury car-sales boom
The Tata Motors-owned manufacturer Jaguar Land Rover UK (JLR) this month
announced its best ever global sales figures for 2012 – selling a total of 357,773
vehicles. Up 30% on 2011, the sales figures are spread across 177 global markets.
The most notable product performance was delivered by the Range Rover
Evoque, with sales of 108,598 vehicles in its first full year of sales – more than
any other previous Land Rover model. China is currently JLR’s largest market
delivering its best ever sales performance in 2012 (71,940, up 71%), followed
by the UK (68,333 up 19%), USA (55,675, up 11%), Russia (20,549, up 43%) and
Germany (16,722 up 41%). JLR confirmed that it will be creating up to 800 new
jobs at its manufacturing facility at Solihull, UK to support production and
development of new models in 2013, such as the Jaguar F-Type. Phil Popham,
Director of Group Sales Operations, said: “Looking ahead to 2013, we are
continuing to invest in our business to support our ambitious plans for growth
and we will be introducing eight new or refreshed products throughout the year.”
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