How does retailing fit into LVMHs overall plans?
There are three basic thrusts in our retailing. First, travel. DFS is clearly focused on upscale merchandise, which is compatible with our core business of upscale brands, even though only 20% of the business in a DFS store is LVMH brands. With the acquisition of Miami Cruiseline Services [acquired earlier this year], we now have 75% of the retail aboard all the world’s cruise ships. Our second major thrust is Sephora. We started with 57 stores in France [in 1997] and now have over 400 stores in 12 countries. We haven’t found a country yet that doesn’t respond very well. It is truly a great concept, and a global opportunity for us. It’s something the customer loves, and the pricing is compatible with the department stores and other retailers in the market, so we’re not undercutting anyone. Now, we have the dot-com business as an extension. Our third thrust is the upscale specialty store, like Bon Marche [a Paris department store that LVMH has overhauled as a luxury emporium]. We are al
