Quick overview

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LVMH plans to open large stores in China this December and is considering further expansion as luxury brands observe early signs of a sales rebound in the world’s second-largest economy.  Four LVMH brands—Louis Vuitton, Dior, Tiffany, and Loro Piana—are set to unveil multistory stores in Beijing, according to sources who wished to remain anonymous due to the sensitive nature of the information. Some of these shops are located in Taikoo Li Sanlitun, a high-end shopping complex developed by Swire Properties Ltd., which faced slow construction progress amid declining luxury sales last year.

The luxury conglomerate, founded by billionaire Bernard Arnault, is also negotiating with Swire to open a new store for Christian Dior—its second-largest fashion label after Louis Vuitton—in one of the developer’s iconic malls in Shanghai.

This growth for the luxury giant aligns with signs that the slowdown in China’s luxury market may be nearing an end. Global retail leaders are expressing cautious optimism about a recovery in this vital market. LVMH Moet Hennessy Louis Vuitton SE resumed growth in the third quarter, and Gucci owner Kering SA reported a smaller-than-expected sales decline.

A significant indicator of this momentum will be the launch of the new Beijing stores. Reports suggest that the new Dior store in Shanghai will be situated next to a large Louis Vuitton space designed to resemble a cruise ship, which opened in the same mall in late June. While the concept and specifics of the store are still under development, Swire Properties has indicated that the 17,000-square-foot Louis Vuitton store—one of the largest in China—has helped the mall double its retail sales in the third quarter and has generated considerable buzz on social media.