Hermès spends €300 million to buy premises of Rue de Sèvres store in Paris

Another luxury label has invested into owning its commercial premises, a growing trend. While Chanel has recently acquired a building on the prestigious Avenue Montaigne in Paris, at number 42 where it has a store, Hermès has now bought the walls of its Parisian flagship on Rue de Sèvres (in the seventh arrondissement), according to a report by CFNews Immo. The French label is said to have spent nearly €300 million for this operation.

Hermès has been operating a store at number 17 of this chic Rive Gauche street since 2010. The artfully laid out 1,300-square-metre space was entirely renovated in 2021. The listed Art Deco building home to the store is where the Lutetia Hotel had its swimming pool between the 1930s and 70s. The space is characterised by a very tall ceiling, and by corridors that once housed cabins for the bathers.

According to CFNews Immo, Hermès bought the store’s premises, not the entire building, from Sylvain Fargeon, who had owned them since 2005.

A year ago, Hermès made another major real estate operation in Paris, buying a 9,328-square-metre building at 11-15 Rue d’Anjou from Covivio for €230 million. CFNews Immo also reported that the label will soon open a new showcase in eastern Paris, at 102 Rue de Charonne (11th arrondissement), this time renting the property.

Hermès was founded in 1837, and currently operates 295 stores in 45 countries. It manufactures 55% of its products in its own factories, and is planning to open three new production sites for leather goods between 2025 and 2027, in the Charente, Gironde and Ardennes regions of France.

In H1 2024, Hermès generated a revenue of €7.5 billion, up by 12%, with net profit up by 6.4% to €2.37 billion.