Shopping Buzz: Hermes to Slow Store Openings and Renovations

The luxury retail market is continuing to shift: After opening 13 new stores and buying out four concessions in 2011, Hermes International is planning to ease the pace of expansion this year, having experienced capacity restraints last year, according to the Wall Street Journal. It has slated three new openings—in China, Taiwan and Abu Dhabi—and 12 store renovations.

This week, the company reported a double-digit rise in first-quarter sales on brisk demand in Asia, but said growth will probably slow down this year due to more difficult trading conditions.

Chief Executive Patrick Thomas said he doesn't expect to the company's 2012 sales growth rate to match the 18 percent recorded last year, in spite of a 22 percent rise for the first quarter.

The performance update from Hermes follows mixed results from other luxury industry companies. Last week, Betsey Johnson announced the closure of the brand's stores. Last month, releases from LMVH Moet Hennessy Louis Vuitton SA and the U.K.'s Burberry Group PLC raised concerns, as figures pointed to a slackening in the pace of the sector's growth since the beginning of the year. Gucci owner PPR SA showed a solid performance in its luxury division with sales jumping 18 percent in like-for-like terms from a year earlier.

FREE Virtual Event

Pivoting Back to Travel: Phase 4

Are you prepared to guide your clients through the “new normal” of travel? Join us December 15, 2020 from 1pm-2:20pm EST for Pivoting Back to Travel: Phase 4. The upcoming installment of our FREE virtual series will feature presentations from the Cayman Islands, Dominican Republic, and Seabourn on their most up-to-date travel procedures, health & safety protocols they’ve implemented to keep guests safe, activities that are open to visitors, what your clients need to know while on their trip and more! Visit www.pivotingbacktotravel to view the full agenda and register for your FREE pass.
Read more on:

Suggested Articles:

Small-ship luxury Ponant has announced a new "Solar Eclipse" voyage to Antarctica's Weddell Sea during November 2021. Check it out.

Insight Vacations launched its 2021-22 Americas collection, including Alaska, Western, Southern and East Coast U.S., Canada and Latin America.

Laurel Brunvoll of Unforgettable Trips recently returned from a cruise on SeaDream I, which ended early due to guests testing positive for COVID-19.