Cartier and LVMH look for stores outside Paris to boost Olympic retail

Luxury retailers in European cities outside France are vying for business with deep-pocketed tourists this summer, betting that a surge in visitors will avoid crowds and street closures in Paris during the Olympics.

“Paris will probably be slow,” and cities like London, Milan or Barcelona will likely see an increase in traffic during the event, Cartier CEO Cyril Vigneron said Friday.

The Summer Games, which run from July 26 to August 11, are probably “not the right time to organize a very important fine jewelry celebration in Paris,” said Nicolas Bos, managing director of Van Cleef & Arpels. “But we will keep the shops open and we will be happy to welcome sports fans,” he added.
Executives at Richemont-owned jewelry brands speak from experience. The 2012 Olympics, held in London, brought some serious buyers to their Paris boutiques, they said, although they were overall “neutral” for their business. Expecting a similar trend this year, they will focus on finding their wealthy clients wherever they turn up.

LVMH, the world's largest luxury group and Olympic sponsor, also bases its expectations on the experience gained at previous events in London and Beijing.

“Normally it is quite neutral, although it makes our lives a little more complicated when it comes to supplying products to our stores,” said LVMH CFO Jean Jacques Guiony.

A report commissioned by Paris 2024 last week noted a possible “crowdout” effect whereby tourists who had planned to come to Paris go elsewhere, but said it is difficult to measure and predict.

France's fashion governing body, the Fédération de la Haute Couture et la Mode, has moved up the fall 2024 haute couture shows by a week to June 24, immediately following the ready-to-wear events. spring 2025 for men. Organizers are also doubling shuttle services between shows as final preparations for the Olympics are expected to snarl city traffic.

However, some fashion brands will only hold presentations in their showrooms in Milan this season, due to “logistical difficulties due to the Olympic Games,” said Carlo Capasa, president of Italy's National Fashion Chamber.

London retailers, who have suffered a drop in tourist traffic with the end of duty-free shopping in the UK, are hoping to attract business from Paris, with preparations well underway at iconic stores Harrods and Selfridges. “Paris has already been removed from Chinese tourist guide lists for this summer,” said Harrods CEO Michael Ward, who expects a significant boost. “We have to select the product, we have to be absolutely focused on managing it,” Ward said.
The department store hopes to attract shoppers with celebrations of its new Tiffany & Co. fine jewelry boutique, designer pop-up events and exclusive products, including two new 175th anniversary teddy bears designed by Italian jewelry brand Bulgari and makeup brand Charlotte Tilbury.

Selfridges plans to attract local and international visitors with sporting events such as a running club and is strengthening its sportswear product offering.

“We are preparing for a great celebration of sport,” said chief executive Andrew Keith.

Meanwhile, Barcelona presents itself as a relaxed alternative to the frenetic Olympic atmosphere of Paris.

“Spain can offer a more relaxed leisure and consumption experience than the city and host country of the Games will have for weeks,” the Spanish retail and food trade association, AECOC, told Reuters.

Some tourists, including Americans, visiting the Games, which will be held mainly at venues in the French capital, are planning to extend their trips to visit other European countries.

“US travel data appears to imply a halo effect, as in addition to an increase in bookings in France for the Olympics, our data reflects an amplification of intra-European travel by Americans in Europe to certain destinations, such as Spain, Germany and Italy,” travel agency eDreams told Reuters.