By Mimosa Spencer and Elisa Anzolin
PARIS/MILAN (Reuters) – Luxury retailers in European cities outside France are trying to win business from tourists with deep pockets this summer, betting on a wave of visitors who avoid crowds and street closures in Paris during the Olympics.
“Paris will probably be slow,” while cities like London, Milan or Barcelona are likely to see an increase in traffic during the event, Cartier CEO Cyril Vigneron said on Friday.
The Summer Games, which take place from July 26 to August 11, are probably “not the right time to organize a very important high jewelery celebration in Paris,” said Nicolas Bos, CEO of Van Cleef & Arpels. “But we will keep the shops open and will be very happy to welcome sports amateurs,” he added.
The executives of Richemont’s jewelry brands speak from experience. The 2012 Olympics, held in London, brought some serious shoppers to their Paris boutiques, they said, although it was overall “neutral” for their businesses. Expecting a similar trend this year, they will focus on meeting their wealthy clients where they show up.
LVMH, the world’s largest luxury group and Olympic sponsor, is also basing its expectations on its experiences at previous events in London and Beijing.
“It’s usually quite neutral, although it makes our lives a little more complicated when it comes to delivering products to our stores,” said Jean Jacques Guiony, LVMH’s Chief Financial Officer.
A report commissioned by Paris 2024 last week flagged a possible ‘crowding out effect’ where tourists who planned to come to Paris went elsewhere, but said this is difficult to measure and predict.
French fashion body, the Federation de la Haute Couture et la Mode, has pushed back its fall 2024 haute couture fashion shows a week to June 24, right after the spring 2025 menswear ready-to-wear events. Organizers are also doubling shuttle services between shows, as final Olympic preparations are expected to hamper city traffic.
Still, some fashion labels will only hold showroom presentations in Milan this season, due to “logistical problems related to the Olympics,” said Carlo Capasa, president of Italy’s National Fashion Chamber.
London retailers, suffering from a drop in tourist traffic due to the end of duty-free shopping in Britain, are hoping to capture sales from Paris as preparations are well underway at iconic stores Harrods and Selfridges. “Paris has already been removed from Chinese travel guide lists for this summer,” said Michael Ward, director of Harrods, who expects a major boost. “We have to put the product together, we have to be at our absolute best to deal with it,” Ward said.
The department store hopes to attract shoppers with celebrations of its new store Tiffany & co (NYSE:). boutique with luxury jewellery, designer pop-ups and exclusive products, including two new 175th anniversary teddy bears, designed by Italian jewelery label Bulgari and make-up label Charlotte Tilbury.
Selfridges plans to attract both local and international visitors with sporting events such as a running club and is expanding its range of sportswear products.
“We are getting ready for a big sports celebration,” said CEO Andrew Keith.
Barcelona is now presenting itself as a relaxed alternative to the crazy Olympic atmosphere in Paris.
“Spain can offer a more relaxed leisure and consumer experience than what the host city and country of the Games will have for weeks,” Spanish retail and food industry body AECOC told Reuters.
Some tourists, including from the United States, visiting the Games, which will be held mostly at venues in the French capital, are planning to extend their trip to other European countries.
‘US travel data appears to imply a halo effect as, in addition to an increase in bookings in France for the Olympics, our data reflects an increase in intra-European travel by Americans in Europe to certain destinations such as Spain, Germany and Italy. ,” travel agency eDreams told Reuters.
