Tiffany Flagship Makeover Will Be a “Revolution,” CEO Says

The renovations to Tiffany & Co.’s New York City flagship will amount to a “revolution,” CEO Alessandro Bogliolo told analysts, according to an earnings call transcript from Seeking Alpha.

“We will improve dramatically the customer service,” he said on the call, which took place on Aug. 28 and followed the release of its second-quarter financial results. “We will enhance the high jewelry customers’ delight and treatment, and we will definitely integrate in that historical building our omnichannel approach…. [W}e really believe that it will be the most amazing luxury flagship in the world.”

He noted that the building, which is owned by the company and is located on 57th Street and Fifth Avenue in Manhattan, comprises 124,000 square feet—but only 45,000 of that is dedicated to retail.

“We will repurpose the space to maximize the client-facing space. And this means that we will increase the surface dedicated to retail, events, and to hospitality for our customers as we leverage on the success of the Blue Box Café.”

And while the company is “thinking boldly” on the renovation, Bogliolo pledged to also respect the “historical significance” of the building.

During the three-year renovation, the store’s retail operations will be moved to the building next door, and Bogliolo hopes that will minimize disruption to its business.

Bogliolo also told analysts:

– The company has boosted its marketing spend to “well above prior levels” and has a “whimsical” campaign geared up for the holiday.

– It’s “pleased” with the initial reaction to its Paper Flowers campaign, which is now being rolled out globally.

Tiffany Paper Flowers collection rings
Rings from Tiffany’s Paper Flowers collection

– The company is increasing its personalized offerings. Its “Make It My Tiffany” campaign, now offered in 100 of its stores, lets shoppers create their own engravings, which can be added to jewelry or charms.

The “personalization” concept is “really resonating with customers,” he said. “And it’s really elevating jewelry, also silver jewelry.”

The company is also introducing a new engagement ring concept, Tiffany True, this fall.

(Images courtesy of Tiffany & Co.)

 

JCK News Director