Luxury conglomerate Kering has made the decision to remove two prime Paris properties from the market after failing to secure buyers. These properties, located at 35 avenue Montaigne and 235 rue St Honoré, were initially purchased by Kering earlier this year with the intention of transforming them into flagship stores for its esteemed brands, Saint Laurent and Gucci. However, due to the current sluggish market conditions, Kering was unable to attract the desired price for these properties.

The initial announcement of Kering’s intention to sell these properties sparked surprise and speculation among industry insiders. Some suggested that Kering’s CEO, François-Henri Pinault, had a strategic motive behind this move. There were speculations that Pinault aimed to gain control over crucial retail spaces and prevent rival luxury conglomerate LVMH from acquiring them. Notably, LVMH has also been actively acquiring real estate in Paris, prompting further speculation about strategic maneuvers within the industry.

In light of the unsuccessful attempts to sell the properties, Kering has decided to withdraw them from the market for the time being. This decision coincides with Kering’s recent successful issuance of a £800 million bond, which aims to enhance the company’s financial flexibility. Kering, as one of the leading players in the luxury sector, boasts an impressive brand portfolio comprising esteemed labels such as Gucci, Saint Laurent, Balenciaga, and Alexander McQueen.

Useful links relevant to the article:
1. Kering Brand Portfolio
2. Kering’s £800 million Bond Sale