I am a Cartier fan, there is no other word for it. For some reason the French jeweller captures my attention in a unique way. For a start, the sheer diversity of the marque is remarkable. There can be little in the world of jewellery, objets and trinkets that Cartier has not turned its hand to over the years. Back in the day, it made everything, and documented it impeccably; I found two ledgers devoted just to cigarette lighters, each model beautifully illustrated.

Cartier also manages to imbue the most quotidian experience with a sense of occasion. For instance I do not have much money but what little I do come across I feel better for holding in a money clip made by Cartier London in the 1930s. And while scouring the Diamond District in New York the other day I talked to Ronald Kawitzky of DK Bressler who showed me a little keychain fastened by a cunning spring-loaded drum; it dated from the 1950s, a lovely object which would have made operating the lock on my Pashley bicycle a daily pleasure. (The only reason I did not go for it was that I am always misplacing my keys and the loss of such an object would have added distress to inconvenience.)

Another thing that makes the Cartier archives so wonderful is that they are so complete and, unusually in our wikileaks era of over-information, discreet. There is something about the fact they are not flogged to death as a marketing tool that makes them even better. Viewed as a whole they are a sort of history of European culture as told through the jewels of the last 150 years and more. There are snapshots of drama: one sees the Duke of Windsor ordering the famous flamingo (made from an old bangle of Wallis’s), while the rest of France prepared to repel the Wehrmacht. There are the super-famous pieces such as the Tutti Frutti necklace made for Daisy Fellowes, one of the style leaders of the inter-war years; while she was not the nicest of women, she had interesting taste. Seeing the original drawings is almost like eavesdropping on the conversation when the piece was sold to her or looking over the designer’s shoulder as he sketched it out and then highlighted it with polychromatic aquarelles that are still bright and fresh after slumbering for eight decades in the folio. Then there are the clocks – my god, even the drawings of these extraordinary fantasy objects, some of which got made and some of which never progressed beyond the drawing stage, are stupendous. The sheer volume of extraordinary work becomes almost overwhelming, whether a tie clip or the Maharajah of Patalia’s epic shopping binge in the late 1930s, when he would turn up at Cartier with trunks – yes, trunks – of gemstones.
Cartier was one of the first firms to photograph all the pieces it made, when the medium was a sort of cross between a conjuring trick, an art and a branch of science. From the Belle Époque, there are photographs and even moulds of the pieces. There are drawers upon drawers of everything from bracelets to chokers from the age of Proust, preserved in plaster of Paris, so if you wanted to remake a pair of lorgnettes or a diamond aigrette, for example, and asked Cartier very nicely, they would have not only images but a selection of three-dimensional models to work from.

This is without exaggeration a collection of decorative and applied arts of global importance, and it has been impeccably curated by Pierre Rainero who runs the heritage side of Cartier and has a rare passion for and knowledge about his subject. After my all-too-brief four hours in the archives we walked around the store and he told me which pieces of furniture had survived from its opening, including Louis Cartier’s desk at which, who knows, he might have roughed out the first sketches of the Tank watch, and even the little tabourets (not unlike the low seats in Harry’s Bar), on which the sales people perched behind desks. It is this sense of connection, of Cartier as a sort of roman ?euve in which the Windsors, Daisy Fellowes, Jean Cocteau, Cole Porter, the Aga Khan et al all play their part, that I find so appealing.

The reason that the archives are so complete is that for a century and more Cartier has remained on rue de la Paix, weathering two world wars and numerous crises. Had it moved premises during an age less conscious of the importance of heritage, many of these invaluable documents and maquettes would have been thrown out as superfluous. Luckily this did not happen. And the best thing is that both Cartier in London and Cartier in New York – which functioned as independent operations until the 1970s when they were united into what became Vendome and subsequently Richemont – have also been at the same addresses since 1909 and 1917 respectively, and they too have archives that, after my Parisian sojourn, I am now even more excited to visit. I only hope that it does not take me four more years’ pleading to gain access to them.

Why? Well, despite what most of us believe about emerging economies, Europe is still one of the sector’s most lucrative markets – with Italy, UK, France, Germany and Russia (especially St Petersburg) leading the way in global annual sales. Any crisis with the euro – and one is imminent – is therefore a crisis for luxury.
Add to this the fact that just under half of all luxury goods purchases made in key capitals such as London, Paris, Milan and Munich are made by Chinese tourists buying abroad to sidestep luxury taxes in their own country (a fact that adds over 30% to any of the prices brands choose to charge them in Shanghai or Beijing), and you can see why a weakness within the yuan or trouble with the euro will be disastrous for an already problematic market.

While Europeans may not be buying luxury brands in bulk within the EU, their Chinese counterparts are, and continue to do so. But if they withdraw (and with the Chinese economy slowing down, this is a likely scenario), then luxury brands will have to look to new territories to maintain that 10% annual growth we have been witnessing over the past two years.

So where to next? The usual suspects, of course: Brazil and India for two, or the BIs as we call them, now that Russia becomes less and less attractive and China problematic in the long term. But as our latest Luxury Futures report suggests, there are a new set of countries and indeed acronyms coming online that merit further investigation. Trading blocs like the MAVINS, CIVETS, MIST and CAPPT.

For MAVINS read Mexico, Australia, Vietnam, Indonesia, Nigeria and South Africa; for CIVETS read Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa; for MIST read Mexico, Indonesia, South Korea and Turkey and for CAPPTs read Chile, Argentina, Peru, the Philippines and Thailand. Roughly speaking all are regarded as safe bets for investment due to young populations, a burgeoning middle class, a semblance of political stability and a high level of natural resources that are needed by a neighbouring country or distant super power – which, in the case of Australia, Peru, Argentina, and Nigeria, is increasingly China.

Equally, the GDP forecasts for these regions are a lot better than their EU counterparts. The Philippine economy is expected to grow 4.2% in 2012 and 5% in 2013. Thailand, the second-largest south-east Asian economy after Indonesia, is predicting GDP growth of 5–6% this year. Meanwhile, the Argentine economy will grow by 6% in 2012 alone.

With a rise in GDP comes a parallel rise in af?uence and retail spends. Indonesia’s af?uent population increased by almost 20% from 2011 to 2012, three times the projected ?gure, while in Africa, consumer spending will double by 2020 as economic growth outstrips most non-BRIC emerging markets. South Africa, Egypt, Nigeria,
Algeria, Morocco, Angola, Libya, Sudan, Tunisia and Kenya are key markets, accounting for 75% of the continent’s GDP.

By 2030, Africa’s new middle class – more than 300m strong – will spend $2.2 trillion a year, about 3% of worldwide consumption, with key spends on luxury taking place in so called golden hubs such as Lagos and
Johannesburg, where many of the continent’s so-called black diamonds are located.

In Mexico, consumer spending will increase from $196.85bn to $257.88bn in 2015. And so on and so forth. All good, then, for the future. Perhaps. But be prepared for changes in how our products look as consumers from these emerging markets demand a luxury that is all about status, value and visible signs of purchase. Stage one luxury, as we call it: the kind of showy luxury that EU brands have been moving away from over the past decade as af?uent western consumers sought out brands that were about discernment, stealth, low visibility and experience.

Well, that was then, and this is now: showy, ?ashy, logo ridden. And so luxury comes full circle. That, or you create market speci?c pieces – which is what many of the brands we interviewed for this report are
secretly doing. But that, as they say, is another story.

www.thefuturelaboratory.com

The largest declines were registered at Tiffany (down 15.9%), Swatch (down 15.1%), Ralph Lauren (down 15.0%), and Christian Dior (down 11.9%), while Blue Nile rose 10.5%. Overall, while the macro headwinds, particularly in Europe, yield an air of caution over the near term, we continue to believe that the best-in-class players, such as Burberry, Hermès, LVMH and Richemont, should continue to capture share given their strong brand cachet, solid product offerings and well-apportioned geographic reach.

MACRO OVERVIEW
In the past month, the major global stock markets remained on a downward trajectory due to lackluster macro data and growing concerns over the European debt crisis. Specifically, the S&P 500 declined (6.1%) over the past month. Meanwhile, the US dollar strengthened against the British pound and euro, in early May, due to ongoing macro concerns in Europe. On the commodities front, gold prices continued to decline, falling to $1,606/ounce from $1,644/ounce in the prior month as investors favored the US dollar. The US Federal Reserve, Bank of Japan, Bank of England, European Central Bank and People’s Bank of China maintained their key interest rates at a range of zero to 0.25%, 0.1%, 0.5%, 1.0% and 6.56%, respectively.

UNITED STATES
In May, the Conference Board’s Consumer Confidence Index declined to 64.9 from 68.7 in April. Additionally, the Present Situation Index fell to 45.9 from 51.2 in the prior month, while the Expectations Index slid to 77.6 vs 80.4 a month ago. Short-term consumer expectations for business conditions were mixed in May: those expecting business conditions to worsen in the next six months decreased to 13.1% from 14.2% in April, but those expecting business conditions to improve dropped to 16.6% from 18.5% in the prior month. The share of consumers expecting an increase in incomes expanded to 15.2% from 13.9% in April. Seasonally-adjusted new orders for manufactured durable goods remained unchanged in April from the previous month after dropping 3.7% in March.

Moreover, real disposable personal income increased 0.2%, unchanged from March, while personal consumption expenditures grew 0.3%, up from 0.1% in March. Seasonally-adjusted consumer prices came in unchanged in April, while core inflation rose 0.2% for the second straight month.

JAPAN
Japan’s April exports grew 7.9% vs 5.9% in March, while imports rose 8.1% vs 10.6% in the prior month. As a result, the country’s trade deficit shrank to ($6.1bn) from ($7.5bn) in March. April retail trade grew 5.8% vs LY, decelerating from 10.3% in March, but half a percentage point below economists’ estimates calling for 6.3% expansion. The indicator in March received a benefit from lapping last year’s earthquake and tsunami. Furthermore, April industrial production expanded 13.4% compared with LY and vs 14.2% in the prior month.
The April average monthly income of Japanese wage earner households expanded 2.7% in real terms compared to the prior year, while disposable income increased 2.3%. The real average spending of Japanese wage earners by household, a key gauge of personal consumption, rose 2.6% in April vs the year-earlier period.

EUROZONE
In May, the Euro-area’s economic sentiment index (ESI) retreated (2.3) points to 90.6 vs April, driven by declining sentiment in the industry and retail sectors, offsetting increases amongst consumers. The UK (down 4.7 points), Italy (down 4.3 points), France (down 1.5 points), Germany (down 1.4 points) and Spain (down 1.0 point) all declined vs LY. The Euro-area’s sentiment in the retail sector fell (7.0) points in May. Euro-area retail sales in April declined (1.0%) from March and fell (2.5%) vs the prior year.

EMERGING MARKETS
China’s April industrial production grew 11.0% for the year, down from 11.6% through March. China’s Purchasing Managers Index in May declined to 50.4 from 53.3 in April. A figure above 50 equals an expansion, while below 50 equates to a contraction. April retail sales grew 14.1% vs LY, down from 15.2% growth in March; consumer confidence rose to 103.0 in April vs 100.0 in the prior month.

India’s real GDP grew 5.3% in 1Q12 vs 6.1% growth in the prior quarter, below expectations of a 6.1% increase, implying that the economy was weaker than observers believed. India’s March manufacturing output fell by (4.4%) vs LY, down from 3.9% growth in February, led by the first declines in factory, mine, and utility production in five months. Industrial production of consumer durable goods grew 0.2% in March, up from a (6.1%) contraction in the prior month.

Russia’s March exports climbed 9.9% vs 16.0% in February, while imports increased 5.9% compared to 15.6% in the prior month. As a result, the March trade surplus declined to $20.2bn from $20.8bn in February. April industrial production decelerated to 1.3% vs 2.0% in March. Real disposable income inched up 2.1% in April vs LY and vs 2.8% growth in March. Annual retail sales in April expanded 6.4% vs LY, down from a 7.3%
increase in March.

Dana Telsey & David Wu, luxury analysts
Telsey Advisory Group +1 212 584 4606/4632

www.alfaromeo.co.uk

This is certainly true and in some way sustainable in those sectors catering for the super rich; in art, property and ?ne jewellery it seems the demand continues to outstrip supply with market makers manipulating the growing throng of multi-million and billionaires being created by globalisation and an increased polarisation between haves and have nots.

Even if you can’t afford a private jet or a George Condo, chances are you can still sport a seriously impressive watch, car and handbag: what was nouveau riche has become nouveau luxe and this time the nouveaus have learnt to aspire to and acquire those products steeped in tradition, authenticity and craft, usually less shiny, nearly always less vulgar. This new breed are harder to spot than their forebears.

All of this is great news for the luxury brands providing these products and services. For the last ten years the world has been our Rolex Oyster. As one economy has suffered, so another has risen to provide even greater opportunities for luxury consumption. Fifty years ago we could count the luxury capitals of the world on one hand, a visit to a luxury brand’s atelier was a pilgrimage, a right of passage, an experience beyond money alone. Today most major international cities have streets saturated with sumptuous flagship stores and if you don’t have time you can buy these luxury brands duty free at the airport or online from the comfort of your own home.

All of this is great for the hungry throngs of luxury consumers but at what risk to the luxury brands? Can a luxury brand retain its caché during growth this rapid? And what will happen to the mega brands when they run out of world? Once the pins are covering the map, how then to deliver growth and what of exclusivity, quality and the value of the rare? Brands with extraordinary heritage, craft and exemplary quality are deep and robust, they stand the test of time, but if these elements are not nurtured these brands can become overexploited, spread too thin, and there comes a point at which the business grows bigger than the brand. Product quality cannot be managed effectively, values are compromised, growth cannot be sustained and shareholders abandon one business for the next. This is a new phenomenon created as a consequence of rapidly growing opportunity but one the mega brands would do well to consider. The smartest brands have planned for this, investing without over-exploiting business, focusing on controlling manufacturing and distribution, educating consumers to understand and value quality and cherish the authentic. Those who are even further ahead of the pack are carefully acquiring and dusting off the remaining great old brands while they can still be bought, understanding that discerning consumers will not tire of authentic brands while new luxury consumers are already growing tired of those that have been over-exploited.

Georgia Fendley is founder of Construct London (www.constructlondon.com)
and brand director of Mulberry (www.mulberry.com)

Future bright for global luxury market
The global luxury market expanded by more than 10% last year, reaching €191bn at the end of 2011 (Bain Altagamma). This is up from €173bn in 2010 and €153bn in 2009. Growth was driven by hard luxury (watches and jewellery), which was up by almost one-fifth (19%). Looking forward, the global luxury market is forecast to reach €235-€240bn by 2014, reflecting average growth of 7-9% for the period. Luxury in Asia will expand by 20-22%, the highest growth of all regions. Despite a slow-down in China, consumers from the mainland are still the largest group of tax-free shoppers in the world.

Art record in New York
Edward Munch’s ‘The Scream’ sold for a record $107m in New York (Financial Times) – the highest amount ever paid for a single piece of art, beating the previous record of $106m paid for Picasso’s ‘Nude, Green Leaves and Bust’ in 2010. With the bidder’s premium (usually 12%), the overall price will come to just under $120m. This is also the first time a piece exceeding $100m has sold at auction. Sotheby’s achieved $331m for the evening, a record for an impressionist and modern art evening sale. Meanwhile Christie’s spring art sale also posted strong results, after selling $117m worth of impressionist and modern art. Contemporary art also sold well and Christie’s broke its 2007 record when it raised $388m for an evening (Just Luxe), achieving new highs for 14 of the artists’ works sold.

Men outspending women online
Online spend by men in the US is outpacing that of women by 20-30% (iProspect). Furthermore, the majority (84%) are buying for themselves, more than a quarter of them on a weekly basis. Luxury menswear and accessories are the main growth areas. Nearly half of them conduct research on their smartphones. As for favourite brands, Rolex ranked first, followed by Louis Vuitton and BMW.

Extracted from High Net Worth by Ledbury, the leading research for professionals who market and sell to the wealthy. To subscribe, visit www.ledburyresearch.com/research-reports/high-net-worth

Starwood Hotels & Resorts
Starwood Hotels & Resorts is to launch its first dual-branded ski resort complex in Changbaishan, China, in August. The 257-room Westin Changbaishan and 296-room Sheraton Changbaishan Resort are next to the slopes of Changbai Mountains, a leading ski area.

Ralph Lauren
The next three years should see 60 new Ralph Lauren stores open in Greater China, the first 15 in Beijing, Shanghai and Hong Kong from autumn, and the other 45 to be confirmed. “We are transforming our presence in Greater China, a region that we believe will become an important driver of growth for us over the long term, and have some magnificent new stores planned,” Ralph Lauren said.

Ittierre
Ittierre, which produces brands such as Pierre Balmain, Galliano and Tommy Hilfiger under license, is planning an aggressive global retail expansion, which includes four new stores in Hong Kong. A Balmain Paris and Pierre Balmain boutique, each covering 1,080 sq ft, are to open at the prestigious Harbour City centre in Kowloon.

Christian Dior
LVMH-owned Dior has opened its largest store in the world in Taipei, Taiwan. The 19,410 sq ft flagship, in the Taipei 101 mall, features VIP rooms and direct lift access in and out of the tower, to cater for the Taiwanese high-end customer, who “doesn’t like to show they have money”, according to CEO Sidney Toledano. “You have several generations now of Taiwanese entrepreneurs with a very high level of taste. They don’t just buy something because it’s a brand and because it’s in fashion. They buy to invest in a high-quality product.” The Peter Marino-designed store has works by contemporary artists, sculptures and video installations. As well as Dior Couture, there are ready-to-wear areas; a shoe room; leathergoods; jewellery & watches; and two levels of Dior Homme. The Chinese Tourism Bureau reports that 163,442 mainland Chinese visited Taiwan last month, up 41% from last year, overtaking the numbers from Japan and Hong Kong.

Most searched luxury brands in China
Audi, BMW and Louis Vuitton have been identified as the most searched-for luxury brands in China (World Luxury Index). The index covers fashion, beauty, jewellery, cars, watches and hospitality, in ten key luxury markets. The research is based on unbiased search inputs in the leading search engines (Google, Bing, Baidu, Yandex). Some were recognised for abbreviated versions of their names: almost two-thirds of searches for Louis Vuitton were denoted by ‘LV’ alone.

It all started in 1335 (how many luxury brands can say that?), when the Boscawen family moved to Tregothnan from western Cornwall. They had a passion for growing things, and developed a beautiful private garden to which subsequent generations added. A love of plants, it seems, was in the genes; and the current Boscawen, the Hon Evelyn, is no exception. Unlike his ancestors, however, he had to husband an estate which now has signi?cant 21st century competition for visitors. Costs are also higher. So, at the start of the 1990s, he needed a plan.

Enter Jonathon Jones, botanical horticulturalist, trained at the redoubtable Edinburgh Botanics and Kew, who was taken on at Tregothnan in 1996 speci?cally to source new and rare species of plant from around the world. In the end, it was the woody camellia to which he kept returning – a plant with fabulous blooms which grew in abundance in Cornwall. Its sub-species, camellia sinensis, is the tea plant. Jonathon decided to experiment, to see if he could grow it on the estate: to put the English into England’s most popular drink. It can’t be done, people told him. We’ve been drinking tea for 400 years and it’s never been grown in England. Tea, as everyone knows, is grown in China, India, Africa – in fact anywhere where there’s humidity and cheap labour. Not much in evidence around here!

Nothing daunted, Jonathon studied Darjeeling. Equable, cool and wet, with an average temperature and precipitation and a year-round consistency – not at all unlike Tregothnan, in fact. Tea is slow-growing in Darjeeling, and there’s no mass production, so anything they brought over would have to be treated as small-batch, high-end, luxury tea. He went and picked up a few hundred bushes – and some Darjeeling shrubs while he was at it – and in 1999 planted them into the folds of the Cornish landscape, far enough away from the sea to be safe from salt and wind.

The bushes grew quickly and thrived, and they realised they were on to something. Confounding expectations was one thing, but actually creating a viable future for the estate was another exciting realisation altogether. Jonathon says, “You can keep tea plants alive for hundreds of years, and this idea ?ts perfectly with what we do. It’s our job to maintain and enhance the estate for the next generations, for the next 500 years. Not many businesses can say or do that – most don’t look beyond a ?ve-year plan.”

By 2005 they had enough mature tea to pick and sell, and they launched it at Kew Gardens. The media leapt on the bizarre and wonderful story of the ?rst properly English tea. An American journalist helpfully pointed out that Evelyn Boscawen was the eighth great-grandson of Earl Grey: a handy marketing tool if ever there was one. What started as a plan to produce a small quantity of loose-leaf tea, brand it and have someone else process and package it, has developed, seven years on, into a sizeable vertically integrated operation handled entirely in-house: 22 tea varieties in all, sold loose or in bags, necessitating an investment into the requisite intricate equipment. “We might be part of a 500-year plan but we’re quick on our feet,” says Jonathon.
High-end herbal teas have been a notable addition, using botanicals grown abundantly on the estate: manuka, nettle, eucalyptus, camomile and so on. “We have 100 acres of botanical garden on the estate, so it’s like a laboratory. Manuka was introduced in the 1880s – it’s a natural antiseptic and antibiotic, known to the Maoris for hundreds of years. With tea-making, there are ?ve key stages: pluck, wither, roll, oxidise and dry. For herbal teas it’s much easier: you just pick, chop and dry. So this was an easy progression to make.”
One of the ways in which Tregothnan is so different from most brands is that the business has a 700-year-old association with the people who live on the estate land – in some cases eight generations of the same family. It gives the tea-making business a core of support, and in return the business gives people on the estate a new sense of purpose, of excitement in being part of growing both the tea, the business and the future of the estate. Says Jonathon: “We have gone completely against the marketing textbook, but we are not building a brand to sell it. It will never be sold. We realised we couldn’t work to a brand manual. We were initially cautious about even talking to the media, but we found there were actually bene?ts in going out and talking about the ?rst English tea. For example, an old tea planter contacted us and gave us lots of help and advice and donated some bushes. We realised that the story sold itself and we really needed to be part of the wider world: not shut away in Cornwall putting up defences against the media. And we needed to make sure we did everything like packaging and design at ‘London’ levels of excellence.”

Sure enough, when the ?rst tea was harvested in 2005, Tregothnan found itself the subject of a radio 4 series – ‘The Next Darjeeling’ – and catapulted into lots of newspaper and magazine coverage. “Tea as a subject,” says Jonathon mysteriously, “features on the front page of the Daily Telegraph on average every 17 days.” There was no structure or budget in place for PR and marketing, so journalists were often left hanging. Somehow Tregothnan was always forgiven, as soon as people set foot on the estate. “I think the authenticity of the place and the story appealed. This is a real working estate with the family in residence and hundreds of years of continuity and stability. It’s beautiful here – not exactly a timewarp, but there is a sense that the buildings and people have been here forever. It tells its own story. We could have wasted a lot of money on PR and advertising but instead we are putting the pro?ts back into more and better tea. It’s chaotic, but real.”
The teas – which, incidentally, are sweet, light and utterly delicious – are sold mainly through independent retailers, hotels, farm shops and tea shops. They’re too expensive to be sold through the supermarkets – 18p a serving as opposed to 2p – and in 2005 links with supermarkets were severed. “We had out-of-category status because we were more than three times the average price for tea. They said it wouldn’t work. Nonsense! If there’s some magic, I think something will always work.” Interestingly, Jonathon is talking to Hackett about opening concessions through its stores in Japan: “The Japanese are mad about it, as they are about all British luxury, but they can’t get it. We think there’s an opportunity here…” Jack Wills, quintessential British brand, is also in Jonathon’s sights, and Fortnum & Mason sensibly employed him at the Chelsea Flower Show to take its top customers on tours of the tea garden. A small amount (20% or so) is sold through the nicely produced Tregothnan website, and the company also sells tea bushes. “In reality Cornwall is the only place they will succeed, and there are very few places it could be commercial.”

A unique little niche then; and in addition the estate has developed three other areas of business: cottage holidays, charcoal production and a successful ?oristry operation. “Floristry goes back to the 1850s here, when the head gardener would develop ?owers to cut for the house. This practice was gradually replaced in the UK by the ‘Dutch torture’. Supermarkets loved it, but ?orists went out of business. So we started doing cut ?owers online and the fact that they are grown on a historic British estate is going down well with customers. We also supply high-end hotels in London such as The Langham, Claridges, Browns and The Savoy. Floristry needs to be reinvented, but without the Dutch or the supermarkets.”

So the botanical horticulturalist, the plant hunter, has found excitement in packaging ?owers, tea and Englishness together to create something with huge commercial potential. He wants to revitalise tea houses too. And he’s still a geek when it comes to comparing the weather with Darjeeling: he tracked it for a year between February 2011 and February 2012, there was not a single frost, and Tregothnan came out, on average, the warmer. You get the feeling the Tregothnan estate will be safe in his hands for easily another 500 years.

www.tregothnan.co.uk

On Fifth Avenue, Salvatore Ferragamo’s newly renovated flagship reopened in style at 655. On the Upper East Side, Pookie & Sebastian will have another shop at 794 Lexington Avenue. In Midtown, Maison 24 (470 Park Avenue) launched a Rory Dobner shop-in-shop.

In SoHo, Chloé’s home will be at 93 Greene Street. Dior Homme has opened at 133 Greene Street. Apple’s multi-million dollar renovation and expansion is nearly complete. Swiss Victorinox took 99 Wooster Street. The Row, by Mary-Kate and Ashley Olsen, will use 609 Greenwich Street for a massive showroom. Rubin & Chapelle is relocating its 14th Street shop to Mercer Street.

In Nolita/ Lower East Side, find an interesting mix of fine women’s apparel, accessories (including Jerome Dreyfuss’ bags) and vintage books at Warm, 181 Mott Street. In the West Village, Maison Martin Margiela has taken 363 Bleecker Street for its MM6 collection. Henry Beguelin’s luxury leathers are joined by other designers at 30 Charles St.

In the Hamptons, the season is getting under way! Monc XIII offers furniture and home decor at 40 Madison Street in Bridgehampton. Upscale grocer Whole Foods Market will open a season market in Wainscott. C Wonder has taken 5 Main Street in Southampton. Christopher Kaufmann jewels will locate at 37b Main Street, East Hampton. Haute Hippie has opened its first permanent area shop at 20 Newtown Lane in East Hampton, while also returning with its pop-up at 66 Jobs Lane in Southampton. Gourmet treats are at The Sagg General Store at 542 Sagg Main Street in Sagaponack. Local legend Stevenson’s Toy Shop has relocated to 69 Jobs Lane in Southampton.

Trend-tracking from the streets of gold: making a splash
Why take just one store when you can lease three and make a real statement? Japan’s lingerie maker Bradelis has opened at 211 Elizabeth Street, 66 Madison Avenue and a unit in Queens, all on the same day. Rebecca Taylor will open at 980 Madison just months after debuting in Nolita and Meatpacking.

Faith Hope Consolo, Chairman, Retail Leasing & Sales, Prudential
Douglas Elliman 001 212 418 2000 fconsolo@elliman.com

By February, Ferragamo was dominating the headlines, agreeing the UK’s most expensive retail rent ever at over £1,000 per sq ft for 24 Old Bond Street. March saw the attention focused on Sloane Street, with Alberta Ferretti establishing a record rent of over £800 per sq ft. At the same time, Loro Piana almost doubled the size of its store
.
In April, H Stern paid Browns £1m for the lease of 6c Sloane Street and Rag & Bone acquired the landmark former HSBC bank on Sloane Square. During May, in plenty of time for the Olympics, Stella McCartney launched the first Adidas/Stella McCartney retail collaboration in Brompton Cross, closely followed by Carolina Herrera selecting the same location for her second store in London.

June brought the appearance of scaffolding at 158-159 New Bond Street, the new Chanel store, with rumours persisting that Christian Dior would rebuild 160 New Bond Street.

On Mount Street, hot on the heels of Nicky Clarke relocating to accommodate Oscar de la Renta (no 130), Swiss luxury watch brand Parmigiani Fleurier has just paid almost £1m for the lease of the former Riyahi Gallery at no 97.

Whilst the two main thoroughfares have dominated the headlines due to the magnitude of the record key money premiums and rents paid, Bruton Street, for example, now shows signs of an improved retail line-up. Isabel Marant has acquired no 29 (premium £750,000) and Alice Temperley the Juicy Couture building (no 27) for £950,000. The Miller Harris premises at no 21 is now under offer to a quintessentially British menswear brand. In Savile Row, The Kooples ruffled the feathers of an establishment still recovering from the arrival of Abercrombie & Fitch Kids.

Whilst Sloane Street is likely to remain within the stewardship of the custodian landlord, Cadogan, on Bond Street retailers continue in their quest to own their own buildings. Well over a billion pounds of real estate is now in the hands of private families or luxury retail groups protecting their stores for future generations whilst securing a very healthy rate of return and, in some cases ironically, receiving rentals from their competitors. It will be intriguing to watch the activities of the major groups following the summer of celebration, although there appears no current desire to place London anywhere other than the very top of the list of preferred locations for a new or larger store.

Keith Wilson, Wilson McHardy, London (tel: +44 (0)20 7439 1666)