LVMH will focus on its biggest, best known alcohol brands and rein in international ambitions for smaller labels to revive Moet Hennessy, the division’s CEO Jean-Jacques Guiony told employees this week in a video reviewed by Reuters.
Reuters
Plans are afoot to shrink the workforce by nearly 13% at the wine and spirits division epitomised by high-end champagne brand Moet and Hennessy cognac. It has for years been a drag on the French luxury behemoth’s performance. Revenue has been falling and operating profit plunged by over a third last year.
Revamping the drinks business poses a tough challenge while the U.S.-led tariff war rages and consumer appetite in key markets such as the United States and China remains weak. For Alexandre Arnault, the division’s deputy CEO and son of LVMH owner Bernard, it may be an opportunity to shine among five siblings lining up for a bigger role in the sprawling conglomerate.
“Today, we have too heavy a construction,” said Guiony, who served as financial officer for LVMH Group for two decades before moving to Moet Hennessy in February.
“We have been planning on purchases for decades … And most of the time, we’ve been aiming at developing in many geographies at the same time, which is, in my view, a mistake,” added Guiony, flanked by Arnault.
Guiony said he would “make some changes” after reviewing the division’s brands. The commitment to the larger and best-known labels like Hennessy and Moet & Chandon remains in place — however, the division houses around 30 brands ranging from top names like Veuve Clicquot champagne to lesser known labels like Volcan de mi Terra tequila and Eminente rum.
“We need to focus them much more on where they have a chance to succeed,” he said.
Guiony also said that the division’s structure had been built for “a much larger size of business”, outlining plans to reduce staff numbers to the 2019 level of 8,200 from 9,400 currently.
LVMH’s job cuts, first reported by French publication La Lettre, would mostly take place through normal staff turnover and retirements, according to Guiony, and by not renewing vacated positions. “I find it very appropriate that the new leadership is looking at cutting costs to support profits – this is the right thing to do,” said Luca Solca, analyst with Bernstein, adding the whole sector was currently facing softer consumer demand.
Drinks players Remy Cointreau and Brown-Forman cut jobs in the United States at the start of this year, while France’s Pernod Ricard, owner of Mumm champagne and Jameson Irish whiskey has reported a slowdown in sales. In current market conditions, growing the business to much higher levels “is not going to happen anytime soon,” added Guiony, citing the division’s nearly 10% first quarter sales decline and uncertainty surrounding tariffs unleashed by U.S. President Donald Trump in April.
“It’s particularly bad when (the move on tariff) is being announced and not decided, because when it is announced, you know how to react,” he said. “Today we don’t know.”
U.S. tariffs could include a 20% charge on European Union wines and spirits if fully implemented, but Trump earlier last month paused most tariffs for 90 days to give time for trade deals, setting a general 10% duty rate instead.
Alexandre Arnault, in the video to staff dismissed talk among some analysts that the division could be hived off altogether.
“It’s never been a plan of our family, of our group, it’s not a plan today,” said Arnault.
Landsec is to invest £1 billion in growing its major retail platform over the next one-to-three years as the commercial property giant highlighted its “undoubted portfolio quality” in another “very strong” trading performance.
Landsec
News of the fresh investment comes after Landsec spent £610 million in the year acquiring the rest of major malls Liverpool One and Bluewater in Kent, although the company has yet to specify how the extra £1 billion investment will be allocated.
And that “very strong” performance for the year to 31 March saw like-for-like net rental income grow an ahead-of-guidance 5% with 8% rental uplifts on relettings/renewals in London and major retail. It’s also seen continued strong leasing momentum since the year-end, it noted.
Meanwhile, EPRA (measuring the underlying operational performance) earnings lifted £3 million to £374 million. Profit before tax rose to £393 million as strong 4.2% ERV (estimated rental value) growth supported a £119 million uplift in portfolio value. That rose 3.4%, “reflecting [the] attraction of high-quality, growing income”.
It also noted that the Q4 period, which coincided with the first three months of 2025, was “the company’s best quarter of the year in retail”, with 6% total sales growth and 2% footfall growth.
That helped end the year with a 3.4% year-on-year rise in sales and a 0.4% increase in footfall across all of its retail locations.
Chief executive Mark Allan said that owning the right real estate “has never been more important” and with a very healthy pipeline of occupier demand, “this trend looks set to continue, providing a clear trajectory for further near and medium-term EPS growth.”
Premium British lifestyle brand Crew Clothing Thursday opened its latest store, in Chiswick, West London, becoming its fourth location in the capital, with ambitious plans to open many more country-wide by year-end.
The new 1,200 sq ft space takes its place on Chiswick High Road, and follows last month’s announcement of a further store opening in Cheltenham, Gloucestershire.
The new store brings “a slice of coastal inspired style to the capital”, with the brand’s SS25 collections.
Head of Marketing, Naomi Parry, said: “It’s a really exciting time for the brand, with all-new ranges, our world-class sponsorship programme, and an ambitious store opening strategy that should see us open 20 new stores by the end of 2025.
“Our investment in new locations within the capital is a true reflection of our belief in the British High Street”, with its physical retail stock now having surpassed 100 stores.
Last month, Crew Clothing also moved into the women’s athleisure space, launching a collection called SuperLuxe.The 38-piece collection includes a SuperLuxe Half Zip sweatshirt, Slim Jogger with a split hem, and Relaxed Shorts.
How manyUK online shoppers abandoned their purchases in the past year due to concerns about delivery? A shocking 40.6% (two in five), according to new research from shipping platform Sendcloud.
archiv
The bottom line is webshops that don’t offer flexible delivery options are the ones that risk losing significant revenue.
Based on a survey of 1,000 UK shoppers for the soon-to-be-published ‘E-commerce Delivery Compass’, the data reveals that high shipping costs (78.5%) and slow delivery speeds (41.6%) are the main reasons for cart abandonment. Other contributing factors include unclear or inconvenient delivery options (24%).
And while 56.9% of UK consumers prefer fast delivery, 43% would rather have control over when their order is delivered. Bottom line: delivery should not only be fast but also fit into the consumer’s schedule.
While home delivery remains the preferred option for 77%, alternatives are rapidly growing in popularity, the report said. Parcel lockers (21%) and pick-up points (25.4%) are increasingly favoured, with 36.8% of consumers now actively choosing retailers that offer these flexible ‘out-of-home’ delivery options.
And that flexibility issue is crucial with 18.7% abandoning a purchase because they can’t select a suitable delivery time, while 16.2% drop out because they can’t change the delivery address.
When consumers are given the option to choose a time slot, preferred delivery windows include 10am-12pm (23.4%), 4pm–6pm (16.9%), and 6pm–8pm (16.3%), “further emphasising that fit often outweighs speed”.
Rob van den Heuvel, co-founder and CEO of Sendcloud, said: “Consumers no longer think of delivery as a backend process. It’s a core part of the overall experience. Shoppers now expect delivery to seamlessly integrate into their busy lives. Retailers that don’t offer flexible options, such as out-of-home delivery, will lose customers to competitors that do. Success in e-commerce isn’t just about speed; it’s about providing choice.”
Politics8 years ago