Tiffany & Co. will cut its presence in its flagship store in Shanghai, relinquishing half of its 12,000 square feet of space. This decision comes as luxury sales in China face a sharp decline.
The Shanghai store, located at Hong Kong Plaza, opened in 2019. It features a striking design with nearly 7,000 handcrafted glass diamonds across two floors.
The move follows a challenging period for LVMH, Tiffany’s parent company. The luxury conglomerate has been affected by the global economic slowdown and Chinese government restrictions on high-end spending.
In the second quarter of this year, LVMH reported a 14 percent drop in sales in Asia, excluding Japan, which encompasses China. Additionally, the company’s global profits from watches and jewelry fell by 19 percent.
According to a Bloomberg report, Tiffany will vacate half of its Shanghai store later this month. The landlord is currently negotiating with potential new tenants. Tiffany has also requested a reduction in rent from property development and investment firm Lai Fung.
