LVMH, the renowned luxury conglomerate, recently announced the appointment of Benjamin Vuchot as the new CEO of DFS, a leading tax-free luxury retail specialist catering to global travelers. Vuchot will be succeeding Ed Brennan, the current CEO and chairman of the board of directors. With a solid background as an executive at Cartier and Van Cleef & Arpels, Vuchot brings a wealth of experience to his new role, having previously worked with Sephora in North Asia.
However, Vuchot is taking on this position at a challenging time for the selective distribution industry, amidst the ongoing coronavirus pandemic which has had a significant impact on global tourism and travel. Despite being majority-owned by LVMH, with Mari-Cha Group holding a 39% stake, DFS has seen a decline in tourist traffic in recent months. Established in Hong Kong in 1960, the company now operates 400 points of sale worldwide, including 18 T Gallerias across 13 countries.
Robert Miller, the founder of DFS and a current shareholder, expressed his appreciation for Ed Brennan’s leadership during this difficult period, praising him for setting a clear strategic direction and maintaining a strong customer focus. Looking ahead, the board of directors anticipates Brennan’s continued support.
The pandemic has also had a significant impact on other entities within LVMH, such as Sephora and Le Bon Marché, with a notable decrease in turnover from 2019 to 2020. In particular, DFS has faced challenges in markets like Hong Kong and Macao, with Hong Kong experiencing a sharper decline due to a decrease in tourist visits.
Despite some signs of recovery in Asia, international travel restrictions continue to hamper business for DFS. The company had originally planned to open a store in La Samaritaine in Paris in 2020, but this has been postponed until spring 2021. In the interim, LVMH will be utilizing the space for its Louis Vuitton runway show during Paris Fashion Week on October 6th at 3pm.
As Benjamin Vuchot prepares to lead DFS, he will need to navigate the company through these uncertain times and adapt to the changing landscape of luxury retail. With his industry experience and expertise, Vuchot is well-positioned to drive growth and innovation at DFS and steer the company towards a successful future.
For more information about DFS and its operations, you can visit their official website here. Additionally, to learn more about LVMH and its portfolio of luxury brands, you can explore their website here.
