How should Tiffany modernize its flagship?
Tiffany, which has faced challenges attracting Millennials, is planning an extensive renovation of its 57th Street flagship.
On Tuesday’s second-quarter conference call, Alessandro Bogliolo, CEO, said the 10-story building has undergone several renovations since opening in 1940, but the planned one will be “much more a transformation that is aimed to delight our customers.”
One priority will be to “repurpose the space to maximize the client-facing” opportunities. Only 45,000 of the 124,000 square feet space is used for retail. Mr. Bogliolo said, “We will increase the surface dedicated to retail, but also to events, to hospitality for our customers as we leverage on the success of the Blue Box Café and also space for VIP customers.”
Mr. Bogliolo sees customer service “dramatically” improving because of the expanded capacity, which allows merchandisers to elevate the “delight and treatment” of both heritage and newer categories and improve omnichannel integration.
He added, “We are thinking boldly on this project, that while respecting the building’s historical significance, we will create an environment that we intend will be second to none.”
The renovation, to start next spring and run through holiday 2021, comes as Tiffany has rebounded with its second straight quarter of robust sales, in part due to some success appealing to younger customers.
Last fall’s opening of Blue Box Café at the flagship was a hit. Customers can experience their own “Breakfast at Tiffany’s” and Instagram-worthy moments with the robin’s-egg blue theme and views of Central Park.
The new Paper Flowers collection has sold well and is seen as a break from Tiffany’s stodgy classic offerings. New marketing features younger celebrities and messaging, including actress Elle Fanning in one commercial dancing to a hip-hop version of “Moon River,” the iconic song from “Breakfast at Tiffany’s”
Speaking to the Wall Street Journal, Andrea Davey, Tiffany’s SVP of marketing, said Millennials are seeking a less-formal version of luxury. She said, “Fine craftsmanship, superlative design and enduring beauty are more resonant with this generation than ever — so much so we’re creating and marketing pieces that you can live with every day, and not only put aside for special occasions.”
- Tiffany Plans a Transformation of Its New York Flagship Store – Tiffany
- Tiffany Reports Second Quarter Results – Tiffany
- Tiffany completely renovating flagship Fifth Avenue location – New York Post
- Tiffany is giving cool a try. And it’s working – CNN
- To Reach Millennials, High-End Jewelers Try New Products—and Approach – Wall Street Journal
DISCUSSION QUESTIONS: How should Tiffany’s flagship be reinvented for the Millennial generation? Should the renovation embrace any of the tech-enabled flourishes of many newer flagships or stay much closer to its stately heritage?