Boutique Closures

[FredRydr]

King of Prussia, serving Philadelphia, Pennsylvania.

 

I was one of their first and more loyal customers when the Montblanc bug bit me.  When I was working on the 60th anniversary green striated 146, Jan Patrick Schmitz, then President of Montblanc NA based in New Jersey, said he considered it his flagship store when it opened in the newly expanded and renovated luxury mega-mall, King of Prussia Plaza.  

 

Times change.

 

[KAC]

Perhaps that's reflecting the trend to online commerce. The pen business was just a small part of the MB portfolio so that probably didn't factor into the decision. Remaining independent pen shops can maybe take up some of the slack for in-person services.

[Toll]

Wow! I have never been to this Boutique but I am saddened by the news. I hope the Washington, DC area Boutique remains open. 

[Uncial]

20 hours ago, KAC said:

Perhaps that's reflecting the trend to online commerce. The pen business was just a small part of the MB portfolio so that probably didn't factor into the decision. Remaining independent pen shops can maybe take up some of the slack for in-person services.

Where did you read that pen sales are the smaller share of Montblanc's sales?

[KAC]

I didn't read it anywhere. However, if you look at the MB product portfolio, pens are only a minor component. So, I'm surmising on a sales volume guess that pens don't figure prominently into their bottom line. On a price/item basis pens seem relatively minor too. On the other hand, it may very well be the case that I'm entirely wrong. Am I?

[fpupulin]

After a decade of continuous increase (from 147 billion Euros in 2009 to 281 €b in 2019), the value of the global personal luxury goods market recorded in 2020 a significant decrease to 217 €b (more or less the same figure as 2014). The Richemont group (who owns Montblanc) managed however to make some 200 €m increase in its sales over 2019. More than 50% sales were done by jewelry maisons (Buccellati, Cartier, Van Cleef & Arpels), and about 20% by watchmakers. Montblanc, together with other six brands of the group, represented in 2020 only a 13% of the sales, with approx. a -5%, and -141 €m operating result. According to the Group’s 2020 Annual Report, however, “Dunhill and Montblanc showed resilience with increase in most regions”.

I was unable to find more recent and detailed figure for the Montblanc brand, but according to a report of 2106 for business segment, 44.3% revenue breakdown was from writing instruments, 33.6% from leather products,  and 5.7% from watches.

So, apparently, Montblanc pens are still going strong...

[arcfide]

My impression of Montblanc's business is that everyone knows about their pens, and it's what "leads" people into the Montblanc brand. After that, people are more inclined to pick up a little something else from the brand if they are happy with their pens, which would include some of the leather goods or a watch. 

 

I haven't heard of many people or seen many people who have picked up Montblanc goods without first having a pen, but I have met a lot of people who have a MB pen without having the other goods. 

[arcfide]

I will say that the store I used to go to personally shut down a while back and it was a bit of a bummer, as I think the Montblanc stores are some of the more fun ones to shop in and browse around, even if I only manage to come out with one of their pens every so often. 

[theodore94]

I grew up near this store, and though I couldn't buy anything there, I'm sad to see it go. I'm sure the pandemic must have had something to do with it, as well... I doubt this really correlates with waning interest in MB pens, just people shopping online / maybe not having the money to spend on a pen right now.

 

On 4/4/2021 at 4:11 PM, arcfide said:

I haven't heard of many people or seen many people who have picked up Montblanc goods without first having a pen, but I have met a lot of people who have a MB pen without having the other goods. 

I (anecdotally) agree. I don't really know anyone who owns any Montblanc goods except for pen collectors... I bought a MB wallet because it reminds me of their pens. I think some non-pen-people like MB watches, but as above, that's a small portion of their business.

[Karmachanic]

 

[JCC123]

Well, they opened a large corner store in Manhattan, their flagship I think, on 59th and Madison. This is their second move in the past 20 years. The first store used to be on 57th and Madison. Then a move to a smaller boutique right around the corner to Madison. And now, a large corner store. It's very nice and seems to be larger than their previous stores.

[KAC]

Thanks to those who researched this. My conjecture was obviously incorrect. I had no idea that the pen aspect of the MB portfolio was significant for the company's bottom line (and candidly, I'm really quite surprised).

[SilverStoneMetallic]

What a shame! That was one of my favorite stores and I purchased quite a bit of ink from there over the past few years. 

[Uncial]

1 hour ago, KAC said:

Thanks to those who researched this. My conjecture was obviously incorrect. I had no idea that the pen aspect of the MB portfolio was significant for the company's bottom line (and candidly, I'm really quite surprised).

 

I was surprised you thought this to be honest. Pens is what they do after all, and have done from the start. They tend to corner niche markets extremely well in other aspects, producing high quality but at a price below the competitor at the same level. So, for instance the leather goods tend to take in Louis V in their sniper sights, the men's fragrances take on Creed in providing inoffensive buisness scents (I find them bland, but they sell, so shows how much I know) and the watches rugby tackle Hamilton, Omega and Tudor but I would be very surprised if there are significant profits to be made in watches these days as a relative newcomer. But essentially these are all chipping away at quite small market shares whereas the pen market would appear to be something they dominate fairly well.

[Toll]

I have not been in the local MB Boutique since last November (maybe even October). I have emailed them to express my interest in seeing the 4810 Bonaparte (need to see the blue barrel close up) when they receive some. I have been tempted by a couple of their watches and some of their luggage, but I have remain focused on pens, ink, pen cases, and notebooks. I love the customer service that they provide. I will ask about how MB Boutiques are doing overall in this environment. 

[FredRydr]

On 4/6/2021 at 2:11 PM, JCC123 said:

Well, they opened a large corner store in Manhattan, their flagship I think, on 59th and Madison. This is their second move in the past 20 years. The first store used to be on 57th and Madison. Then a move to a smaller boutique right around the corner to Madison. And now, a large corner store. It's very nice and seems to be larger than their previous stores.

The boutique at 59th & Madison was managed by Kevin Mantell, who was a genuine gentleman and a pleasure to deal with.  I gave my business to King of Prussia (my "local"), but when in New York, Kevin treated me like his own customer, even giving me an umbrella once when I was caught in a downpour.  

[JCC123]

1 hour ago, FredRydr said:

The boutique at 59th & Madison was managed by Kevin Mantell, who was a genuine gentleman and a pleasure to deal with.  I gave my business to King of Prussia (my "local"), but when in New York, Kevin treated me like his own customer, even giving me an umbrella once when I was caught in a downpour.  

Hmm, you wrote "was." Is he no longer the manager there? The 59th and Mad store only opened a couple of months ago so that would have been a quick tour of duty. Perhaps you meant 57th and Mad?

[FredRydr]

I knew it as 598 Madison Avenue.

[JCC123]

1 hour ago, FredRydr said:

I knew it as 598 Madison Avenue.

Yea, that's the old store. It's closed. It was also tiny. The new one at 635 Madison, a couple of blocks away, is much larger, their flagship. I'll be in the neighborhood on Friday. I'll see if I can get a photo of it.

[JCC123]

Here are photos. The first is the view from Madison Ave. The second, from 59th St. Lastly, the left side of the store when view from Madison Ave. I couldn’t take photos of the right side as it’s blocked by displays. As you can see it’s much larger than the previous store.