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The fast track out of recession: Ferrari opens store in West End
Sri Carmichael6 May 2009
The economy may be going to hell in a handcart but Londoners are being asked to ride it out by buying into the Formula One dream.
Ferrari is opening its first British store in Regent Street today - a vote of confidence in the capital's commitment to expensive hobbies despite the recession.
A host of celebrity Ferrari fans, including former England footballers Teddy Sheringham and Jamie Redknapp and Pink Floyd's Nick Mason, joined a parade of 15 classic cars driving through the West End to mark the opening ceremony.
The two-storey, 530-square-metre shop sells Ferrari merchandise rather than sports cars in a bid to open up the brand to customers of all incomes.
Brand director Danny Bahar said: "Some people may not be able to buy a car but they want to become part of the passion of Ferrari and Formula One with more affordable items.
"We are aspirational and exciting and Londoners still want that. We are opening because we believe in our brand and in Londoners' desire to buy it. It is a vote of confidence in London."
Mr Bahar acknowledged that it was difficult for expensive brands to maintain sales during the downturn but said racing offered an escape from the economic gloom.
Ferrari's launch comes amid signs of growing consumer confidence, with a survey showing 52 per cent of workers in the capital feel financially the same or better off than they did a year ago.
The poll from shopping comparison website Kelkoo revealed that nearly two thirds of people are buying up to three expensive items each month to cheer themselves up.
Bruce Fair, managing director of Kelkoo, said: "The fact that consumers aren't prepared to give up luxury items shows they are unwilling to let the recession get them down."
Mr Bahar said Ferrari's merchandising stores were succeeding because they offered "democratisation" - people did not have to spend tens of thousands of pounds on a car to feel part of the brand.
In the next two years, the company will bring the number of such shops across the world to 40. There are already 25 Ferrari merchandise stores a cross the world which have opened in the last four years. Locations include Milan, Barcelona, San Francisco, Miami, Macau in China and Abu Dhabi.
Ferrari recorded bumper sales last year as the global economy came to a halt with its turnover increasing by 15.2 per cent on 2007 to £1.7billion, and profit soaring by 27.4 per cent to £299million. John Guy, retail analyst at brokerage firm MF Global, said: "It's typically the high-end and low-end brands that tend to be less affected by the downturn in consumer spending.
"The environment is still very difficult for luxury brands but if a brand can draw on its heritage appeal and target the right demographic it can probably do relatively well despite the economic circumstances."
Reader views (2)
.... or MP's claiming for Ferrari bling at tax payers expence . . . again !
- Steve, Herts, 11/05/2009 21:21
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Thats all we need in London; Regents Street filled up with Bankers buying bling for their Ferrari's.
- Mickyinlondon, london, 06/05/2009 10:00
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