LVMH scales Rodeo Drive: 100k-sf LV campus and Tiffany flagship by 2029
Bottom Line Impact
If executed to plan, LVMH can secure Rodeo Drive leadership, add 2 to 3 percent to LV and Tiffany Americas revenue post-opening, expand margins via experiential monetization, and elevate brand equity through a flagship cultural destination.
Key Facts
5- Louis Vuitton plans a 100,000-sf complex: 45,000 sf of retail fronting Rodeo Drive and 55,000 sf of hospitality off Beverly Drive
- Opening targeted for 2029, contingent on Beverly Hills city approvals and entitlements
- The building spans the block from Rodeo Drive to Beverly Drive along South Santa Monica Boulevard, connected by two pedestrian bridges and a tunnel
- Program includes restaurants, rooftop gardens, and exhibition space, positioning the site as a cultural campus
- LVMH will also add a new Tiffany & Co flagship on Rodeo Drive, reinforcing multi-brand dominance in the zone
Executive Summary
LVMH is consolidating control of Beverly Hills' highest-value corridor with a 100k-sf Louis Vuitton retail and hospitality campus and a new Tiffany & Co flagship, targeting a 2029 opening pending city approval. The investment creates a West Coast brand embassy that can monetize experiences, drive high jewelry traffic, and strengthen LVMH's Americas mix while raising the competitive bar on Rodeo Drive.
Actionable Insights
Immediate Actions (Next 30-90 days)
Establish a cross-maisons LA campus steering committee with gated milestones for entitlements, capex, and hospitality model selection by end of next quarter
Rationale: Centralized governance will compress approval timelines and align LV and Tiffany footprints, programming, and back-of-house synergies
Role affected:CEO LVMH and CEO Louis Vuitton
Urgency level:immediate
Launch a 48-month pre-opening pipeline program to grow LA top-client CRM by 25 percent yoy and secure anchor cultural collaborations tied to awards season
Rationale: Early clienteling and cultural partnerships will de-risk opening KPIs and accelerate conversion to high-ticket categories at launch
Role affected:CMO Louis Vuitton and Tiffany & Co
Urgency level:immediate
Short-term Actions (6-12 months)
Build a three-scenario capex and returns model with IRR and payback sensitivities tied to footfall, F&B revenue per seat, event days, and high jewelry conversion
Rationale: Clear thresholds enable disciplined capital deployment and contingency planning amid construction cost inflation and potential entitlement delays
Role affected:CFO LVMH
Urgency level:short-term
Secure air-rights and easements for bridges and tunnel, adopt early contractor involvement, and lock a guaranteed maximum price with material cost hedges
Rationale: Complex structural connectors and inflation risk require early technical design and commercial safeguards to protect timeline and budget
Role affected:Chief Real Estate and Development
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Entitlement and community opposition delaying 2029 opening
- Construction cost inflation impacting capex and IRR
- US luxury demand normalization reducing post-opening ramp assumptions
Primary Opportunities
- Experiential differentiation that lifts footfall, dwell time, and full-price sell-through
- High jewelry and event monetization driving outsized average order value and margin
- Cross-brand synergies between Louis Vuitton and Tiffany that increase client lifetime value