'LVMH city': St Tropez residents fear town is being turned into giant boutique Bernard Arnault started by buying a small building where he set up a Dior boutique. And ever since, he buys everything that moves," David Belity, a local shopkeeper, told Le Parisien. It's going to turn into a little Monaco, a showcase for his luxury development. The tycoon has gradually fanned out, installing Vuitton and Bulgari stores in the Garonne square. He recently acquired a local restaurant, turning it into a Sephora cosmetics store. In the Place des Lices, a favourite spot of local boules players, he spent 22 million euros (£19 million) on a hotel, transforming it into the four-star Hotel White 1921 with suites at 990 euros per night. The establishment is right next to his Fendi and Celine fashion and leather stores. With the billionaire reportedly having even grander designs on a string of luxury properties, graffiti artists last year replaced St Tropez with "LVMH City" on one town sign last year. Police quickly took the sign down, but the sign reflected a malaise among some who argue he is killing St Tropez's bohemian side and turning it into a giant designer store with the blessing of the mayor, Jean-Pierre Tuvéri. "Bernard Arnault's group is taking advantage of the current mayor's policy of giving property developers and private investors free reign," complained Dominique Bonnet, president of the St-Tropez Our Village association. That wasn't the case with the former mayor who tried to preserve St-Tropez from the financial pressures inherent with such a famous town, and protect us from speculators, real estate promoters and (the town's) depersonalisation. The "LVMH phenomenon," however, was "only the tip of the iceberg," she claimed. This entire town is being sold off to private interests. It's a far cry from the Bardot years, with boutiques on the port to which the world's celebrities would flock now you find in St-Tropez the same thing as everywhere else. Some commentators wondered whether Mr Arnault's frenzied buying spree might be linked to a long-standing rivalry with François Pinault, France's second richest man who founded the PPR luxury empire - now Kering - that owns Gucci, Puma and Stella McCartney. Both men own huge luxury properties in the same Parcs de Saint-Tropez domain and are sometimes seen sipping rose within yards of each other at the Sénéquier, one of the port's most fashionable bars. The pair fought a bruising battle for Gucci, which Mr Pinault won. Despite the reservations of some, many residents of St Tropez, which soaks up tens of thousands of day-trippers but only has a population of 5,600, welcome the boost to the local economy. "He brings in a clientele that spends a fortune in the shops," said one shopkeeper who declined to be named. People weigh up the pros and cons, and in this time of crisis, they are more inclined to see the advantages.