Tiffany & Co’s world-renowned 57th Street and Fifth Avenue flagship store in New York has been suffering the effects of being in close proximity to Trump Tower.
While the store is still open for business, shoppers have struggled to enter the store on its Fifth Avenue entrance as security, media and protestors have increasingly surrounded Trump Tower following the presidential election.
Furthermore, Macquarie Capital Markets analyst, Laurent Vasilescu, warns that the flagship’s location proximity to Trump Tower could hit sales. The main entrance to Tiffany & Co is right next door to the main entrance of Trump Tower.
Vasilescu says this could adversely affect the jeweller’s footfall traffic and sales in the short term. Looking at long term problems, Tiffany & Co could suffer from street closures and enhanced security measures is the president-elect continues to visit Trump Tower frequently. Even more so when he become president in the new year.
A 10% decline in same-store sales at the New York flagship translates into more than a 0.8 percentage point hit to worldwide same-store sales, the analyst reckons.
A spokesperson for Tiffany’s said the company is in frequent communication with the Secret Service and New York Police Department on matters pertaining to safety and security in the area, and directed visitors to its 57th Street entrance.
It is hard to predict how long the situation will persist. Tiffany & Co has already had to cancel one major calendar event – the unveiling of its annual holiday-window display – but insists the company is open and read to welcome Christmas shoppers who can enter via the 57th Street entrance with ease.