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

[NatyNat]

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.

 

[SheCorney]

Working on Alvear, right between Cartier and Ralph Lauren, has been challenging lately. The impact of import restrictions has affected our sales, and we've also felt the absence of Brazilian tourists, who usually contribute significantly to our business. Over the past couple of weeks, we've only recently seen a slight return of Brazilian customers.

We specialize in selling watches, jewelry, and handbags, but May and June were particularly slow for us. While we're now managing to get some new items in, obtaining merchandise has become a financial challenge for the company. The situation became apparent when a watch representative visited the store with a catalog of new items. My coworker and I, who don't handle the actual orders, were surprised that the rep engaged with us. Despite our polite reactions to the new watches, our coworker shared information about popular models, particularly some Micheal Kors rose gold watches.

To our shock, a few hours later, our boss received a call from the main office, informing her that "the order" was ready. We were perplexed because we didn't place any orders, and it turned out the rep falsely claimed that my coworker and I had ordered all the new Armani models in the catalog.

Despite our attempts to clarify the misunderstanding, the situation escalated, and now, as a form of retaliation, we're no longer allowed to place individual orders as we used to. The company has imposed a $6,000 minimum purchase requirement, making it challenging for us in the current circumstances.

 

[Paravichini]

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

 

[earlyretirement]

Working on Alvear, right between Cartier and Ralph Lauren, has been challenging lately. The impact of import restrictions has affected our sales, and we've also felt the absence of Brazilian tourists, who usually contribute significantly to our business. Over the past couple of weeks, we've only recently seen a slight return of Brazilian customers.

We specialize in selling watches, jewelry, and handbags, but May and June were particularly slow for us. While we're now managing to get some new items in, obtaining merchandise has become a financial challenge for the company. The situation became apparent when a watch representative visited the store with a catalog of new items. My coworker and I, who don't handle the actual orders, were surprised that the rep engaged with us. Despite our polite reactions to the new watches, our coworker shared information about popular models, particularly some Micheal Kors rose gold watches.

To our shock, a few hours later, our boss received a call from the main office, informing her that "the order" was ready. We were perplexed because we didn't place any orders, and it turned out the rep falsely claimed that my coworker and I had ordered all the new Armani models in the catalog.

Despite our attempts to clarify the misunderstanding, the situation escalated, and now, as a form of retaliation, we're no longer allowed to place individual orders as we used to. The company has imposed a $6,000 minimum purchase requirement, making it challenging for us in the current circumstances.

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.

 

[TrevorOD]

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.

 

[SheCorney]

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.

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.

 

[SheCorney]

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?