Giorgio Armani, the Milan, Italy-based maker of upscale men’s and women’s apparel, is moving its Chicago boutique from Oak Street to North Michigan Avenue, joining a bevy of Italian luxury goods makers that are calling the Magnificent Mile home.
Armani has signed a lease in Park Tower, the luxury hotel and condominium development on Chicago Avenue between Rush Street and the Chicago Water Tower. The new boutique will occupy 8,000 square feet on two levels and have a Michigan Avenue address.
“We’re happy with the Armani image and the first-class standing they bring to the building,” said John Lyons, vice president of Hyatt Development Corp., a subsidiary of Hyatt Corp., the Chicago-based hotel giant, and Park Tower’s developer.
More Top Picks Best Green Light Therapy Lamps For Migraines
The space at 113 E. Oak St. currently occupied by the Armani boutique likely will be used to showcase Emporio Armani, real estate sources said. Emporio Armani is a less expensive line aimed at younger, urban customers, and has a separate chain of nine stores in the United States.
Until recently, the Armani boutique on Oak Street has been operated by Ultimo Enterprises Ltd. under a long-standing license agreement with designer Giorgio Armani. But Armani has repurchased the license and the lease on the space, the sources said.
Lawrence Kyman, chief executive of Ultimo Enterprises, declined to comment on the status of the Armani store, except to say, “We’re still in negotiations with them.”
Ultimo, the luxury fashion house built by Chicagoan Joan Weinstein, has been retrenching since Weinstein’s retirement. Last year, Ultimo sold three Jil Sander boutiques, including one on Oak Street, back to Jil Sander America. Rumors that Armani wanted to buy back the Ultimo license have circulated for months.
Ultimo Enterprises, now controlled by venture capitalists, also owns its namesake store on Oak Street as well as an Ultimo in Dallas and an outlet in Harriman, N.Y.
Having an Armani flagship store on Michigan Avenue is another coup for the city’s highest profile shopping street, said Russell Salzman, executive director of the Greater North Michigan Avenue Association.
“It’s fabulous. A luxury hotel with luxury residences and a luxury apparel maker is a perfect fit for that building,” Salzman said.
It’s also a sign that the Magnificent Mile is in no danger of going downscale, he added. Some critics have called the presence of moderate-price retailers such as the Disney Store, Gap and Filene’s Basement an indication of that trend.
In fact, the number of high-end European retailers on the street has never been higher. The Armani store is joining Chanel, Bulgari, Gucci, Salvatore Ferragamo and Ermenegildo Zegna on North Michigan Avenue.
“Michigan Avenue is attracting these high-end stores because it has gained an international reputation as one of the best retail streets in the world,” said Camille Julmy, vice chairman of Chicago-based U.S. Equities Realty LLC, which represented Hyatt in the lease negotiations.
The Armani deal leaves another 9,000 square feet of retail space in Park Tower still to be rented. A new 203-room Park Hyatt hotel will occupy the lower floors of the 67-story building. The hotel is scheduled to open in May.