Paris, London, Tokyo and now Atlanta: Kering eyes U.S. expansion

French luxury group Kering is eyeing second- and third-tier cities for possible store expansion in the United States, where its sales are booming, Chairman and CEO Francois-Henri Pinault said on Thursday.

The Gucci owner said on Thursday it was on the hunt for possible acquisitions and might expand in more U.S. cities, after a sales surge showed resilience in demand for luxury goods even as inflation soars.

Pinault said the group was considering cities like Atlanta, Charlotte and Austin, adding there was room for the group to operate its own stores in places where it had previously sold through wholesale channels.

He said the quality of shopping malls was lacking for luxury players.

"We are revisiting our geographic coverage of stores to cover these zones that are new for us," he said, adding that new stores include a Gucci store in Austin, Texas.

The luxury industry has fast recovered from the fallout of the coronavirus pandemic, with sales for most groups now exceeding their pre-crisis levels, and thanks to strong demand has room to further increase prices in the face of rising costs.