Majors

Physical Retail Reigns Supreme, LVMH Exec Tells CNBC

MajorsJun 23, 2021

Physical Retail Reigns Supreme, LVMH Exec Tells CNBC

CFO Jean Jacques Guiony shared his thoughts on the future of retail and how newly acquired Tiffany & Co. fits in.

An 18-karat yellow gold wrap bracelet from LVMH-owned Tiffany & Co.’s HardWear collection ($8,900). In a recent CNBC interview, LVMH CFO Jean Jacques Guiony spoke about how Tiffany is fitting in with its other brands as well as the future of physical retail.
New York—Luxury titan LVMH is feeling confident about the future of retail, particularly in-store shopping.

LVMH Chief Financial Officer Jean Jacques Guiony shared his thoughts on retail’s future and the importance of the in-store experience during a CNBC interview Monday.

The conglomerate’s portfolio spans multiple categories, including fashion, jewelry and watches.

Its brands include Louis Vuitton, Bulgari, Hublot, TAG Heuer, and the recently acquired Tiffany & Co.

On CNBC, Guiony said the retail store experience will weather the COVID-19 pandemic because the “client experience in a retail store cannot be matched easily online.”

 Related stories will be right here … 

Customers who come into LVMH-owned brands’ stores usually have already been to the brand’s website, where they could have made a purchase, but instead still chose to visit the store.

“They get a lot of information, but they come to the store because the store experience is something that cannot be matched on the internet,” he said.

“As of today, I mean, no one has found the sort of miracle formula that would enable clients to enjoy [the experience] as much online.”

That’s not to say the online elements aren’t important. Retailers should “enrich the experience with online content,” he noted.

However, he said LVMH sees online shopping as only a complement to its physical stores.

During the interview, Guiony also spoke about the company’s $15.8 billion acquisition of Tiffany & Co.

The famed jeweler’s New York flagship store on 57th and Fifth, a major draw for shoppers, is still under construction, he noted, but said the rest of the business is “doing fine,” though it is still too soon to give exact figures.

“We are quite satisfied, and on top of that, whatever the numbers, we are definitely convinced that this is a very strong brand.”

Guiony also delved into how Tiffany is settling into the company and the timetable for the assimilation process.

WATCH: LVMH CFO Jean Jacques Guiony Talks Tiffany


“The integration of Tiffany is not a six-month job. It’s something that will last for a number of quarters and the objective is not just to integrate. It is to develop the business up to the level that we think the quality of the brand could generate, so it is a long-term job,” he said.

LVMH’s most recent quarterly results showed a double-digit increase year-over-year in first quarter revenue with sales more than doubling in its watches and jewelry segment. 

“All in all, frankly, we cannot complain,” Guiony said, noting business is doing well in most regions.
Lenore Fedowis the associate editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Events & AwardsDec 03, 2021
JA New York's Spring Show to Return in 2022

The New Designer Gallery will also make its comeback.

Events & AwardsDec 03, 2021
Gary Roskin Will Receive the 2022 Bonanno Award

Roskin heads the International Colored Gemstone Association, and is a graduate gemologist, author, journalist, and diamond grading expert.

Policies & IssuesDec 03, 2021
Alliance for Responsible Mining Names New Executive Director

Gina D’Amato joins with more than 15 years of experience in sustainable development.

Brought to you by
Train Your Staff Today with Interactive eLearning

Join the prestigious brands, industry organizations and sellers using IGI’s educational services.

CollectionsDec 03, 2021
Piece of the Week: Angely Martinez’s Island Bar Ring

The designer’s memories of beach trips and nature in the Dominican Republic inspired her new opal and pearl collection, “Aqualescence.”

Weekly QuizDec 02, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of Nov. 29-Dec. 3, 2021.
Take the Quiz
FinancialsDec 02, 2021
Signet Raises Guidance Again, Expands Selection of Lab-Grown Diamonds

Its additions include an exclusive lab-grown diamond cut for Zales’ “Vera Wang True” line and a lab-grown option for Kay’s “Leo” cut.

TrendsDec 02, 2021
A New Book on Lover’s Eyes Jewelry Is Out Now

“Lover’s Eyes: Eye Miniatures from the Skier Collection” features more than 130 examples of the much-sought-after antique style.

Brought to you by
3 Tips For Entering the Estate Market

Generate foot traffic and expand your jewelry expertise by adding an estate assortment to your store in partnership with Windsor Jewelers, Inc.

SurveysDec 02, 2021
2021 Will Be the ‘Year of Jewelry,’ Analyst Says

Edahn Golan forecasts a blockbuster holiday season will cap off a stellar year for U.S. jewelry sales.

×