De Beers and LVMH will open its first jewelry retail operation in London, The Guardian newspaper reported.

The location of the new diamond jewelry emporium will be 45 Old Bond Street in the Mayfair section of the city, the London-based newspaper reported-close to the Ritz Hotel and Burlington Arcade-one of Britian’s most prestigious shopping districts. The newspaper quotes an employee of Property Agent Colliers CRE.

The store is reportedly on the corner of Old Bond Street and Piccadilly will be in the middle of the designer label quarter, where labels such as Gucci, Cartier, Versace, Mont Blanc, and Prada are sited.

News that an outlet has been found by the joint venture comes almost a year after the announcement of the marriage between the diamond cartel and the French owners of Christian Dior and Givenchy.

It confounds the doubters who thought the venture could be postponed because of September 11, the newspaper reported. Since the disaster the world’s luxury brands groups, including LVMH, have issued a series of profits warnings as consumers, particularly wealthy Americans, have stayed away from the stores, finding they do not have the stomach for buying designer clothes and expensive baubles.

But a spokesman for LVMH told the Guardian that De Beers and LVMH are determined to go ahead with the emporium.

The newspaper also reports that agreements in principle have been reached for stores in other fashion capitals – including New York, Paris, and Madrid.

The joint venture follows a shake-up at De Beers, which controls two-thirds of the world diamonds market, and will see it sell custom-made diamond jewelry using LVMH’s retail expertise.

JCK