The rumours has been circulating for months. And now it finds confirmation. Kering is investing around 300 million euros for an 8,000 square metre building in the heart of Paris, on the corner of rue de Saint-Honoré and rue de Castiglione. So as to provide Gucci with a flagship store in the Ville Lumière. And, above all, to respond to LVMH‘s arch-rivals. Which just a stone’s throw away, in the direction of Place Vendôme, recently opened a Louis Vuitton mega-boutique.
Kering invests 300 million in Paris
It was Lettre A, last spring, that first raised the subject: “Is Kering behind the investment company that has been buying up all the properties on the same block since 2020”. Now, it is Fashion Network that has published the confirmation. With the latest cafe le Castiglione, 175 square metres at 235 rue de Saint-Honoré purchased in 2021 by Compagnie Financière de Choiseul, the whole block is under the same ownership. According to rumours, Kering first considered renting out the property for 12 million euros per year.
Then, also considering cash availability, it preferred the solution of buying it for 300 million euros. Not much is known about the details of the project. The work is entrusted to the Franklin Azzi architects’ studio. It seems that of the total 8,000 square metres, 2,800 will be allocated to Gucci’s flagship store. Meanwhile, what is certain is that Kering has thrown down the gauntlet to LVMH.
In photo (from Google Maps), the corner of Paris where (apparently) Gucci and LV will confront each other