The slow progress of such a key project is symbolic of the challenges European luxury firms such as LVMH Moet Hennessy Louis Vuitton SE face in China. Demand that was supposed to roar back after the lifting of strict Covid restrictions is instead cratering, a disappointment that’s helped erase about US$251 billion ($331 billion) from the stock market value of these brands since March.
When LVMH CEO Bernard Arnault toured China in June last year, he visited a five-story site in Beijing where the company’s top brand Louis Vuitton planned to open its flagship store in the first half of 2024.
More than a year later, the building remains fenced off. The store may not open until as late as next year, according to people familiar with the matter.
