TOKYO--Louis Vuitton has scrapped plans for a new 10-story Ginza flagship due to open in 2010 against a backdrop of declining luxury goods sales in Japan. The store, which was set to be Louis Vuitton’s largest worldwide, would have complemented Louis Vuitton’s already extensive network of stores and sales points in the city. Louis Vuitton confirmed its plans for the Ginza tower in May. A spokeswoman at Burson-Marsteller, speaking on behalf of Louis Vuitton Japan KK, said Tuesday that Vuitton and real estate developer Hulic Co. had been in talks for a Ginza store but the parties couldn’t reach a mutually satisfactory agreement and terminated negotiations. She declined further comment. The move comes as luxury goods makers and retailers continue to struggle in Japan amidst a global recession. As reported, brands including Louis Vuitton, Dior, Prada and Salvatore Ferragamo are cutting prices here in a bid to lure customers back to their stores. Vuitton parent company LVMH Moët Hennessy Louis Vuitton saw its sales in Japan fall 7 percent for the nine months ended Sept. 30.
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