LVMH Moët Hennessy Louis Vuitton SE is currently in negotiations to acquire a building situated on Manhattan’s renowned Fifth Avenue, as the luxury conglomerate aims to secure prime retail locations worldwide.
The conglomerate, which boasts ownership of 75 brands including Christian Dior and Tiffany & Co., is reportedly exploring the purchase of 745 Fifth Ave., as per sources familiar with the matter who preferred anonymity due to the confidential nature of the process. LVMH is contending with other potential buyers for the property positioned at the intersection of 58th Street, where a Bergdorf Goodman men’s store occupies the first three floors, according to one source.
At the time of reporting, representatives for LVMH and landlord Paramount Group Inc. had not responded to requests for comment. Meanwhile, a spokeswoman for Neiman Marcus Group, the parent company of Bergdorf Goodman, declined to provide any statement.
Competition for premium corner locations along Fifth Avenue is intensifying among luxury retailers, with the avenue being one of the most iconic shopping destinations globally. Just recently, Kering SA, which owns brands like Gucci and Balenciaga, announced the acquisition of 715-717 Fifth Ave. for $963 million. In a similar vein, Prada SpA disclosed its expansion in New York through the $835 million purchase of two neighboring buildings, 720 and 724 Fifth Ave., as reported by Bloomberg in December.
Last year marked a record for property acquisitions by LVMH, which invested approximately €2.45 billion ($2.66 billion) globally, primarily for retail ventures.
“We strive to secure and acquire the finest locations for our enterprises,” remarked Bernard Arnault, CEO of LVMH, during an earnings call with analysts on Thursday.
Recent transactions encompassed the acquisition of a site in central London and two properties on Paris’ avenue des Champs-Elysees. In 2022, LVMH also purchased 22 avenue Montaigne, the site of its headquarters.
LVMH’s latest financial report, released on Thursday, revealed an increase in sales at the close of last year, indicating robust demand from affluent consumers for the group’s high-end handbags and Champagne, showcasing resilience at the world’s largest luxury conglomerate.