Tiffany & Co. Aggressive U.S. Expansion

Tiffany & Co. said Wednesday that it plans a "significant increase" in the number of TIFFANY & CO. stores it plans to open in the U.S. To make this happen, the luxury jeweler developed a new, smaller-format store that will occupy approximately 2,000 square feet and offer jewelry designs with the exception of engagement jewelry. It has the working name TIFFANY & CO. COLLECTIONS and the first store is expected to open in 2008.

"The addition of this new format affords us with the opportunity to ultimately operate as many as 170 stores in the U.S.," said Michael J. Kowalski, Tiffany chairman and chief executive officer. "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."

Kowalski said the company still plans to open five to seven traditional TIFFANY & CO. stores per year, averaging about 5,000 square feet. Tiffany currently operates 68 TIFFANY & CO. stores in the U.S.

Beth O. Canavan, Tiffany executive vice president, said the new stores will cater to the self-purchase customer theroughout the U.S.

"The location opportunities in existing and new markets are vast and geographically broad-based and add enormous sales potential and longevity to our store expansion strategy," Canavan said.

After opening the first store in 2008, Canavan said the company plans to open eight to 12 stores per year.

Three New Tiffany Stores to Open by April 2007 in Japan

Tiffany & Co. plans to open two boutiques in recently renovated department stores in Tokyo's main commercial and luxury shopping areas, as well as one boutique in Hiroshima's premier department store by end of second quarter 2007.

On March 2, 2007 the jeweler will open a boutique in Tokyo's Seibu department store, 21-1 Udagawa-cho in Shibuya; another boutique will open in the Takashimaya store at 5-24-2 Sendagaya in Shinjuku in late April. In addition, a new Tiffany watch corner is expected to soon open within the new watch department on the store's remodeled 4th floor. Also, Hiroshima boutique, located in the Fukuya department store, 6-26 Ebisu-cho Naka-ku, will open in late April. The new boutiques bring the total number of Tiffany's Japan locations to 55.

"The newly designed stores offer Tiffany & Co. Japan wonderful new opportunities to delight our customers and make new friends," said Michael C. Christ, president of Tiffany & Co. Japan Inc. "The opportunity to join Seibu in their successful location in Shibuya will represent our first store in that vital Tokyo market. And the exciting new remodel of the Takashimaya Times Square in Shinjuku will be a perfect showcase for Tiffany design. Included in the new Shinjuku renovation will be the first exclusive Tiffany watch corner in Japan. Finally, it is a privilege to join the historic Fukuya Department Store in Hiroshima and the fine retail business they have built over the years."