Tiffany Releases New Store Format and Plans for More Locations

Luxury retailer Tiffany & Co. announced plans to significantly increase its number of U.S. stores, plans aided by their development of a new, smaller-format store that will occupy approximately 2,000 gross square feet. The stores, the first of which is to be opened in 2008, will offer a range of Tiffany jewelry, minus engagement jewelry, under the working name Tiffany & Co Collections.

The retailer currently operates 68 Tiffany & Co stores in the U.S.

Chairman and CEO Michael J. Kowalski commented while speaking with security analysts and investors at the company’s new store on Wall Street, “The addition of this new format affords us with the opportunity to ultimately operate as many as 170 stores in the U.S. Our plan continues to call for opening five to seven Tiffany & Co stores per year of approximately 5,000 gross square feet in size.”

“In addition,” he continued, “up to 70 Collections stores will be opened as location opportunities arise. This new format has the potential to significantly accelerate U.S. sales growth over the medium- to long-term and enhance profitability due to a merchandise mix weighted with higher-margin products.”

Executive Vice President Beth O. Canavan added, “After opening the first Collections store in 2008, we envision additional openings at the rate of three to five stores per year, which will increase total U.S. store expansion to the rate of eight to 12 new stores per year."