Tiffany and Co. has announced plans to expand its amount of U.S. locations, facilitated through a new smaller-store format that occupies 2,000 gross square feet and excludes engagement jewelry.
The first store is expected to open in 2008 with the working name of Tiffany and Co. Collections.
Tiffany Chairman and Chief Executive Officer Michael J. Kowalski said this new format allows the company to ultimately operate as many as 170 stores in the United States.
“Our plan continues to call for opening five to seven Tiffany and Co. stores per year of approximately 5,000 gross square feet in size,” Kowalski said in a meeting to security analysts and investors. “In addition, 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.”
Currently, the company operates 68 Tiffany stores in the United States.
Tiffany Executive Vice President Beth O. Canavan said the new store format will reach out to the self-purchase consumer. She also said the company envisions opening three to five Collections stores a year after the first one opens in 2008, which will increase total U.S. store expansion to the rate of eight to 12 stores per year.
Currently, Tiffany is listed as the 17th largest jewelry-retail chain in North America based on store units.