The parent company of CardLinx member 24S of the LVMH Group, the world’s largest luxury retailer, is ending its planned takeover of Tiffany & Company. The government of France requested the deal be delayed on Aug. 31 because of a threat of U.S. tariffs on French goods, as well as coronavirus concerns.
The souring of this deal is an example not just of trade tensions, but also of the significant impact of the pandemic on in-store luxury retailers. A big part of the value of Tiffany is its empire of posh retail stores in the world’s leading commercial centers. Many of those brick-and-mortar destinations are now shuttered and the Tiffany business model looks more like a liability than an asset. Since the deal was announced, LVMH has made a successful pivot to online shopping experiences with its well-known e-commerce brand 24S.