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LONDON — Hermès unveiled an ultra-luxurious mega-boutique at 166 New Bond Street on Tuesday. The nearly 2,000-square-meter “maison” — which spans six interconnected townhouses and features a spiral staircase designed by Norman Foster and over 500 artworks — is a big bet on London by “the most British of French houses,” as Hermès executives are fond of calling the company.
Bond Street remains one of the world’s top luxury avenues and a powerful showcase for brands targeting high-spenders from around the world. The UK’s stagnant economy and its decisions to eliminate duty-free shopping for visitors and rescind tax exemptions for non-domiciled residents have dampened sales. But Hermès is playing a long game.
“Don’t ask me if it’s a good time or a bad time for London,” said chief executive Axel Dumas. “We are so happy to be right now in London and to make this commitment to the city, which is one of the biggest cities in the world — everybody comes to London.”
“London remains one of the capitals of the world and an outstanding global stage. The planetary appeal of London is structural,“ added Bernstein analyst Luca Solca. “Some of the choices creating headwinds may be transient — or at least the industry hopes so.”
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The opening comes as luxury brands rethink their retail networks, focusing on fewer, higher-impact stores in key hubs, amid a prolonged downturn.
Hermès has proven more resilient than rivals with its top-end appeal and scarcity-driven leather goods strategy, but the company is by no means immune to the slowdown. Sales grew 5.6 percent at constant exchange in the first quarter, missing analyst estimates.
Hermès shuttered its 155 New Bond Street boutique and concession inside department store Selfridges on nearby Oxford Street last month ahead of Tuesday’s grand opening.
Look Inside Hermès’ new Bond Street ‘Maison’
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