LVMH Moët Hennessy Louis Vuitton SE is in talks to buy a building on Manhattan’s Fifth Avenue as the luxury conglomerate seeks to control the best retail sites globally.
The owner of 75 brands including Christian Dior and Tiffany & Co. is exploring the purchase of 745 Fifth Ave., according to people familiar with the matter who asked not to be named because the process is private. LVMH is competing against other bidders for the property at the corner of 58th Street, which houses a Bergdorf Goodman men’s store on the first three floors, one of the people said.
Spokespeople for LVMH and landlord Paramount Group Inc. didn’t immediately respond to requests for comment. A spokeswoman for Neiman Marcus Group, which owns Bergdorf Goodman, declined to comment.
Competition is heating up among luxury retailers for prime corner spots on Fifth Avenue, one of the world’s most famous shopping corridors. Earlier this week, Kering SA, the owner of brands including Gucci and Balenciaga, said it bought 715-717 Fifth Ave. for $963 million. In December, Bloomberg reported that Prada SpA is expanding its New York presence with the $835 million purchase of two buildings nearby, 720 and 724 Fifth Ave.
Last year was a record for property acquisitions for LVMH, which purchased about €2.45 billion ($2.66 billion) of real estate globally, mostly for retail operations.
“We try to secure and buy the best possible locations for our companies,” Bernard Arnault, chief executive officer of Paris-based LVMH, said on an earnings call with analysts on Thursday.
The recent deals included the purchase of one site in central London and two on Paris’ avenue des Champs-Elysees. In 2022, LVMH bought 22 avenue Montaigne, where its headquarters are based.
LVMH reported Thursday that sales rose at the end of last year as wealthy shoppers treated themselves to the group’s pricey handbags and Champagne, a sign of resilience at the world’s largest luxury conglomerate.
By Natalie Wong and Angelina Rascouet
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