Blow to London as Gucci bosses quit for Switzerland

Gucci Group chief executive Robert Polet, whose luxury goods business includes top fashion labels Stella McCartney and Alexander McQueen, is quitting London, it emerged today.

In a blow to London's status in the global luxury market, Polet and chief operating officer Alexis Babeau are moving from Grafton Street, off Berkeley Square, to Cadempino, Switzerland.

Gucci Group said the Swiss offices, which are already the centre for its supply chain, are closer to key markets in Paris, Milan and Florence.

A spokesman said: "It didn't make strategic sense to have the headquarters in London."

The group's human resources, legal and IT departments will stay in London and there will be no redundancies.

There is speculation that Dutch-born father of two Polet may be partly motivated by the recent introduction of the £30,000 annual levy per head on foreign, non-domiciled residents who want to avoid UK income tax.

However, sources close to Gucci could not say if Polet is a non-dom and maintained that UK tax was not a factor.

Gucci, which is owned by the French conglomerate PPR, moved its corporate HQ to London in 1998 when then creative director Tom Ford was at the helm.

Since Polet took the helm in 2004 he has tripled operating profits. The group generated revenues of 3.39 billion (£2.8 billion) last year and made a profit of 692 million.