Store Closings: Ralph Lauren, Cartier, Escada, & Zenga

[sergio]

Not that I shop at any of the stores listed in the "Title", but these stores, Ralph Lauren, Cartier, Escada, & Zenga, have all closed up Argentine operations for the foreseeable future due to the inability of them to get their merchandise into the country.

I like to take clients into the Ralph Lauren store on Av. Alvear because it has a Tiffany & Co. ceiling that is amazing, but yesterday when I tried to go in on my tour, it was closed. The sign said something like-

"We are permanently closed for now."

In todays "La Razon", there is a snippet at the bottom of page 6 that translates to:

The U.S. firm Ralph Lauren initiated the closing "termporarily" of its operations in the country due to the difficulty in obtaining supplies of garments that generate official barriers to imports, measured by the companies Cartier, Escada, Ermenegildo Zegna and already had to leave Argentina. Thus, the company termporarily closed its three locations.


I cleaned it up a bit, but you get the point.

I will say that Avenida Alvear is going to look like a ghost town if this continues (and I can't see why it wouldn't). Louis Vitton, Hermes, & Mont Blanc will be next and then there will only be a few Argentine stores between a bunch of boarded up windows. I can't see how scaring off big spending tourists is going to help the economy.

Harrods was a store for another Argentina. Unfortunately it didn't keep pace with the London store. The place was run down and had poor displays and mediocre merchandise at the time of its closing. In the 40's it must have been impressive. I knew the store at the time of its closure and it DESERVED to close.

By contrast, Ralph Lauren and the other shops mentioned above never lost their luster. They're all first rate with classy establishments up to international standards. They are closing ONLY because of an idiotic, short sighted government policy, not because the shops declined in quality. There are few quality Argentine goods to replace what they sell. Someone here recently posted very knowledgeably about the inferior quality of clothes manufactured in Argentina - women's being the worst. Lopez Taibo is an exception. I believe all their shoes are produced in Argentina. They should stay open, Guido also. Both manufacture excellent men's shoes -- sold at high prices.

 

[nledec]

There was a rumor that Falabella and Easy would also be closing due to import issues. Any truth to that?

 

[sheawj]

I work on Alvear, smack dab between Cartier and Ralph Lauren, actually. It's been tough because not only because of the imports issue, but this year we haven't had the same sales pop from Brazilian tourists. Only the past 2 weeks have we had any Brazilians in the store at all.
We sell watches, jewelry, and handbags and we had a pretty dry May and June. I think now we're able to get a few items in, but my company has a hard time now paying for the new merchandise. I think the watch reps are feeling the sting because a few days ago one came to the store with the catalog of new items. My coworker and I, who do not make the actual orders, were a bit stunned that the rep would come talk to us at all. We gave polite 'ooohs!' and 'ahhhhs!' over the new watches (well, as much as you can. I just can't get THAT excited over a damned watch). My coworker said, 'Ok, well these are some popular models that people seem to like the most,' and points to a few Micheal Kors rose gold models.
The rep leaves.
Much to our surprise, a few hours later our boss called absolutely crazy because the rep phoned our main office to tell her that 'the order' was ready. Huh? What order? Apparently this dude had some agenda going on and told her that my coworker and myself ordered all the new Armani models in the catalog.
Of course, we didn't, and the man made some sleazoid moves in my opinion...especially since my coworker called the guy who actually buys the watches when the rep walked in and he knows that we are only the shopgirls who do not have the authority to make such purchases.
There was much irritation on both sides of the phone, and now, in retaliation, we are not allowed to order one or two models here and there as we have done in the past. Now my company has to have a $6,000 minimum purchase, and I don't see that happening anytime soon.

 

[earlyretirement]

I work on Alvear, smack dab between Cartier and Ralph Lauren, actually.

Sheawj,

I was always curious how profitable those stores were on Alvear? I wouldn't think after high rents, employee salaries, taxes, benefits, operating costs, etc. there would be too much profit. Do you know how profitable your store is?

There are a few stores on Alvear that were constantly closing and another new one would take over and that would fail as well a few years ago. I just don't understand other than maybe a realtor who only needs a very small storefront could make much money there.

I was always curious about that. I'm sure more and more will probably close shop.

 

[YanquiGallego]

In my more cheto days, I was a great client of the Ralph Lauren store on Alvear which was actually a flagship/mansion location for the company. Actually, prior to the Kirchner BS, buenos aires was a HUGE focus market for them as well as for most luxury retailers, hence the reason why BA had 3 Ralph stores in Cap Fed. Cities like Chicago in the states don't even have 3 Ralph's, just to give you an idea of how much emphasis was placed at one time on BA.

I received a very nice PR letter from the general manager for Argentina informing me of the closings of all 3 locations August 1st.

Other retailers are following suit and dropping like flies as well. (Cartier, LV, etc) and I'm sure that once some of the other names see who is jumping ship they will do it also.

 

[trennod]

Theyll be back, I am sure in time they will be allowed to get their stock in and they will re-open. It is a joke though that it has to get to this. I was speaking with one of the guys in the Nike store the other day and they were saying it was difficult for them also.

Speaking of high end fashion (although not quite Ralph etc), the assistant of Florencia Kirchner (daughter of the president) was in during the week buying up a sh*tload of clothes for her at my girlfriends store. Good to see the family buying industria nacional for a change.

 

[sheawj]

Sheawj,

I was always curious how profitable those stores were on Alvear? I wouldn't think after high rents, employee salaries, taxes, benefits, operating costs, etc. there would be too much profit. Do you know how profitable your store is?

Our store makes nothing. If I'm not mistaken, our monthly rent is $65,000 a month, the electricity around $650-$800. We've only had a few months where we sold more than it costs to have the place going. Our only saving grace the past few months have been sales from Mercado Libre, where business is actually perky.
The owners have several stands selling basically the same stuff in various Falabellas, and that is how they make a profit. I don't know why on earth they have this store, but (as bad as it sounds) I think it's a status thing.

 

[sheawj]

Not sure if anyone will be interested in this, but our shop closed officially yesterday. Today we packed and tomorrow everything is getting moved our new location just off of Cabildo.
I wonder who's next?

 

[trennod]

Not sure if anyone will be interested in this, but our shop closed officially yesterday. Today we packed and tomorrow everything is getting moved our new location just off of Cabildo.
I wonder who's next?

So the store has moved (ie current location has closed opening new location)?

 

[sheawj]

Exactly. We reopen the second week of June. There just isn't anyone on Alvear these days...perhaps on Cabildo we'll actually have more than one person enter the store every four hours!
The owner cried all morning as we packed, though actually the move will be a good thing.