Tiffany is embarking on a dramatic renovation of its Michigan Avenue store in an effort to keep the iconic jewelry brand shining in the minds of increasingly discerning shoppers.
The wall-to-wall renovations at 730 N. Michigan Ave., expected to be completed in September, are part of a larger effort to introduce a new aesthetic to Tiffany’s retail stores, said Edward Gerard, group vice president of U.S. retail sales for New York-based Tiffany & Co.
The two-story, 15,000-square-foot flagship will not change in size overall, but the sales floor will expand by almost 10 percent to help “elevate the level of service we’re able to provide,” he said.
The intent is to create a more open, modern and expansive environment for customers with more seating options and luxurious finishes, such as marble, polished metal and velvet drapery, Gerard said. A wall that separates two salons will be removed to create a grand entrance. It will be Tiffany’s first store in the country to have a dedicated watch salon, featuring a new collection of watches expected to launch in the spring.
“All consumers are becoming more discerning as it relates to how they shop, and experience is a differentiator,” Gerard said. He declined to say how much money Tiffany will invest in the renovations.
The Michigan Avenue store, one of four in the Chicago area, is its first flagship to receive the major upgrade. The store has consistently ranked as one of the company’s top five performing stores in the U.S., thanks to a customer base of area residents as well as domestic and international tourists, Gerard said.
“Any way you look at it, Michigan Avenue plays an important role in the global retail stage, and it warrants the type of investment we’re making,” he said. He added that Tiffany is “overweighting investment in the near term in our largest and best stores.”
Other Chicago-area Tiffany stores have received less dramatic upgrades. Tiffany renovated its store at Oakbrook Center last year and at Old Orchard Mall in 2012. Its Northbrook store opened in 2011.
The Michigan Avenue store will remain open during construction, which is already underway. Facade improvements were completed before the holidays. Signs and awnings in the familiar blue were added along Superior Street and Michigan Avenue to boost its street presence.
Tiffany, founded in 1837, has had a Michigan Avenue presence since 1966, when it opened at 715 N. Michigan Ave. It moved to its current location, previously a McDonald’s, in 1997.
The company, a luxury brand known for its diamond jewelry, recently reported disappointing holiday sales despite an otherwise positive year. Worldwide sales declined 1 percent to $1.02 billion for the November-December period and the company lowered its earnings guidance for the year.
But the nine months that ended Oct. 31 had been better, with worldwide sales growing 8 percent to $2.96 billion. Net earnings increased 1 percent to $288 million, or $2.22 per diluted share, during that time.
Tiffany has thrown much of its marketing focus on its new Tiffany “T” collection, the first line under new design director Francesca Amfitheatrof. The line is meant to appeal to more modern shoppers who buys items for themselves, not just as gifts.
The company also has undergone several recent management changes. Jennifer de Winter, most recently chief merchant at Saks, will join Tiffany as senior vice president of its North America division March 1.
Its longtime CEO, Michael Kowalski, said last year that he would step down and be succeeded by company president Frederic Cumenal, effective April 1. Kowalski will remain nonexecutive chairman of the board.
