Pursuits

Versace to Bottega Court Local Shoppers as Jet-Set Demand Cools

  • Luxury-goods makers catering to New York, Hong Kong residents
  • Spending by tourists has stagnated in wake of terror attacks

The Versace store on 5th Avenue in New York.

Photographer: Victor J. Blue/Bloomberg
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After years of feasting on tourists’ demand for hand-stitched leather satchels and diamond-encrusted watches, luxury-goods makers are now courting a group they’ve long overlooked: local shoppers.

Handbag-maker Bottega Veneta is relocating its Manhattan store from Fifth Avenue to nearby Madison Avenue, where more New Yorkers shop. Italian fashion house Gianni Versace plans to open a Hong Kong boutique that will cater to the island city’s residents, not the Chinese who have curbed spending there.