The Gucci heir is setting his sights on a new endeavor: the world. Chief executive of PPR SA François-Henri Pinault revealed to Wall Street Journal about his plans to sell off the company's retail divisions and re-focus on its global consumer and luxury brands. PPR is the French luxury house that owns such recognizable names such as Gucci, Yves Saint Laurent and Puma.
"We have a major weakness—retail," Pinault said."It is a business that cannot develop quickly abroad," explaining that it takes time for consumer to grow accustom to an overseas brand.
PPR could reap about six billion from the sale of its retail businesses, according to analysts. But Pinault wants to cash that money in for creating a new mass-market division mirroring PPR's Luxury goods unit.
Don't be surprised if you see this strategy being played out on the American frontier. Wal-Mart Inc., Gap Inc., and others are looking towards reluctant and/or unnecessary spending customers who are hesitant to spend, due to the current economic state. Though many mainstream retailers have slashed prices, discounters like Ikea Group and Gap's Old Navy stores, as well as e-commerce purveyors, have far outperformed rival chains.