J. Press Store Revives Its Yalie Roots

The Wall Street Journal: Preppy clothing retailer J. Press said it is trying to ignite U.S. sales by opening a store in the Midtown Manhattan building that houses the Yale Club this October … The proximity to the Yale Club represents a homecoming of sorts for J. Press, which began by selling ties, belts and odd trousers near the school’s New Haven, Conn., campus in 1905. The brand is known in preppy circles for its embroidered collegiate logos and cocktail-themed accessories such as needlepoint martini-themed cuff links.”

“The move near the Yale Club is one of the biggest investments for the brand in a long time, according to Jun Murakami, chief executive officer of Japanese company Onward USA, whose parent owns J. Press. He added the Midtown space is expected to generate 25% of total U.S. sales. Mr. Murakami also said he forecasts 30% of J. Press’s sales will be generated online in the near future, and the company hopes to increase that number to 50% by relaunching its website and boosting its presence on social media.”

“Marshal Cohen, chief retail analyst at NPD Group, believes J. Press has a ‘tremendous opportunity’ because the brand is still strong with U.S. consumers.” He comments: “The challenge is that they’re climbing up a hill selling tailored clothing in a casual environment. But there are times when the younger generation needs to get that job or go to a wedding, even in a less dressy world.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Nordstrom Local: Manicures, Not Merchandise

The Wall Street Journal: “Nordstrom Inc. is opening a new store next month that is a fraction of the size of its typical locations, where shoppers will be able to enjoy services such as manicures and on-site tailoring. Something it won’t carry: clothes … Nordstrom Local, scheduled to open Oct. 3 in West Hollywood, Calif., will span 3,000 square feet, far less than the 140,000 square feet of one of Nordstrom’s standard department stores.”

“It will contain eight dressing rooms, where shoppers can try on clothes and accessories, though the store won’t stock them. Instead, personal stylists will retrieve goods from nine Nordstrom locations in Los Angeles, or through its website. The stylists can also pull together looks for shoppers through a ‘style board’ app.”

“In addition to manicures, Nordstrom Local shoppers will be able to order wine, beer, coffee or juice from an in-store bar, and those who place orders on Nordstrom.com by 2 p.m. can pick them up there that day. They will also be able to return items at the store that they bought online or from other Nordstrom locations. Tailors will be available for alterations or to help members of Trunk Club, an online clothing service that Nordstrom acquired in 2014, select fabrics for custom garments.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Saks 5th Wellery: Luxury Prison-Style Workouts

Business Insider: “Saks Fifth Avenue’s flagship store in Manhattan has become, at least temporarily, a wellness paradise. The store has dedicated an entire floor to athleisure-focused shops and offerings like workout classes, salt rooms, and even vitamin guru services. This collection of shops make up The Wellery, which will be open at Saks through October. During your shopping experience, you can get your nails or eyebrows done, take an intense workout class, or find products that are tailored to a health-centric lifestyle.”

“One of the most intense activities at The Wellery is a prison-style boot camp run by the boutique fitness studio ConBody. The studio’s founder, Coss Marte, developed the classes during his time in prison. The $30 classes include resistance exercises using body weight and are taught by formerly incarcerated trainers … On a more relaxing note, the Breathe Salt Rooms provide a holistic treatment that claim to have a healing and detoxifying effect on respiratory conditions and the skin … You can also sit through a guided meditation while having your nails done at Sundays, a salon that uses nontoxic nail polishes.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Sey What? A Nordic Coffee Experience

The New York Times: “This season, two New York roasters are unveiling shops that are designed to impress. One, the airy Sey Coffee, which opened this month in Bushwick, Brooklyn, is all raw concrete and whitewashed walls, a skylit showcase for a roaster with a following among coffee-heads who favor the bright, clean profile of the so-called Nordic style … Its owners, Tobin Polk and Lance Schnorenberg, started roasting in 2011 in a fourth-floor loft around the corner from the new shop … Mr. Polk built the burnished maple bench that runs along a cinder-block wall himself, and the ceramist Erin Louise Clancy will set up a work space in the back that will supply the shop.”

“A roaster taking a similar tack is Nobletree Coffee, which … is unveiling a shop in front of its Red Hook, Brooklyn, roasting facility that sets out to make a statement, a state-of-the-art coffee bar with all the shiny toys: a gurgling Steampunk brewer, a streamlined Modbar brewer and espresso machine, kegs of nitrogenized cold brew on tap. While the other Nobletree locations are built for speed, this is a place to nerd out, a destination coffee bar. It helps that the roaster is in a mid-19th-century warehouse, on a pier with a postcard view of the Statue of Liberty across the harbor.”

“Eric Taylor, the general manager of Nobletree, says the purpose of the coffee bar isn’t to make sales but to create a tasting room, a place where you can refine your palate. Nobletree is a part of FAL Coffee, which owns coffee farms and a processing mill in Brazil. Some of the beans that make it to Brooklyn are the cream of those crops — the baristas behind the counter are familiar with every link of the supply chain.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

LVMH: A Winner in Real-Life Retail

Axios: “LVMH, the French conglomerate and owner of brands Louis Vuitton and Sephora, had a 15% rise in first-half 2017 revenue, and that did not come by running fire sales — profit was up 23% … LVMH’s success is a reason for traditional retailers to despair as much as hope. The secret behind LVMH’s success is near total control of products from conception through manufacturing and sales, the opposite strategy of traditional mass-market retailers that largely act as middlemen and little more.”

“Next to Louis Vuitton, LVMH’s most important brand is Sephora, the beauty retailer that has been gobbling up market share in the $22-billion cosmetic retail industry. Customers interviewed by Axios raved foremost about the in-store experience, with freely accessible samples of any product absent any interaction with a salesperson. If shoppers want help, these customers say, Sephora’s staff is knowledgable and eager to find them the right look.”

“LVMH is demonstrating one formula for making a success of brick-and-mortar retail. That does not mean it can rest: Even high-flying luxury retailers like Louis Vuitton must constantly innovate as e-commerce matures and offers more products and more ways to buy them.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

$1,400 iPhone & The Veblen Effect

Christopher Mims: “The launch of a pricey new iPhone has big implications for Apple’s financials, and it also bodes well for Apple’s continued dominance in mobile phones. Here are five reasons for Apple to go big, price-wise:” 1 Halo Effect: “An ultraexpensive edition of the iPhone makes sense as a shot in the arm for the whole brand … 2 Crazy New Tech: A big reason companies have halo products is that they give them a way to test new technologies.” 3 Supply & Demand: “If Apple’s high-end iPhone is aimed at a new segment—people willing to pay more than $1,000 for a phone—Apple can charge whatever it likes to balance supply and demand for the device, rather than worrying about whether increasing the price will hurt its overall market share.”

4 Average Selling Price: “With a phone priced upward of $1,400, Apple would have the opportunity to move the single most important metric on its balance sheet: the average selling price of a new iPhone.” 5 The Veblen Effect: “The final reason a pricey iPhone makes sense is that, paradoxically, the more expensive Apple makes the device, the more people will lust after it. Conspicuous consumption was first described in ‘The Theory of the Leisure Class’ by the economist and sociologist Thorstein Veblen, who singled out products that, contrary to logic, sold better when their prices went up.”

.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Aldi Conquers With Cromwell Gin

Business Insider: “The £9.97 Oliver Cromwell London Dry Gin from Aldi won a gold medal at the International Wine and Spirits Competition (IWSC) this week. In doing so, the budget retailer’s gin beat bottles costing up to four times the price in the blind taste test.”

“A spokesperson at the International Spirits Challenge said: “The display of awards achieved by Aldi this year at the International Spirits Challenge was fantastic. They consistently showcased high quality products in the blind tastings, which demonstrates that you don’t have to compromise on price to enjoy great tasting drinks.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Schrager’s Public: Affordable Hotel Luxury

Quartz: “Forty years after redefining nightlife with the legendary New York City nightclub Studio 54, the hotelier and real estate developer Ian Schrager’s newest vision is for a new kind of affordable luxury—a hotel and arts center in downtown Manhattan that offers a blueprint for disrupting the mid-market hotel sector.” Schrager says “people don’t care about the gold buttons or if coffee is served in bone china. We offer luxury without it being obsequious.”

“With rooms starting at $200 a night, PUBLIC New York is geared to the tech-savvy Airbnb set—who are taking a growing bite out of hotel bookings. At that price, the new brand is playing the same field as some of the highest valued hotel brands, and particularly their fewer-frills ‘select service’ hotels, which have thus far weathered the exodus to Airbnb relatively well.”

“At the heart of all of Schrager’s brand propositions—from Studio 54 to the PUBLIC—is community, a growing trend in hotel design. PUBLIC is designed for a generation of savvy entrepreneurs; the hotel blurs lines between social, professional and cultural spaces with serene, light-filled, public venues with amenities to support optimal productivity and social interaction … Fast wifi and sleek design may lack the debauchery of his Studio 54 heyday, but Schrager’s new model for hospitality seeks to still offer today’s guests the opportunity to be a part of a scene.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Brand Stradivarius Fails To Resonate

Van: “Recent research led by Dr. Claudia Fritz of the Université Pierre et Marie Curie in Paris has questioned whether we can perceive the differences between old and new violins. In September 2010, Fritz and her team of researchers asked 21 experienced violinists to choose which violin they preferred from a pool of six. These consisted of three new and three old violins, two of which were Stradivarius … Each of the participants wore goggles that disguised whether the instrument they were playing was old or new.”

“Contrary to expectations, it was one particular Stradivarius that was the least preferred. Perhaps even more surprisingly, the single most preferred instrument was a new violin … In her most recent paper, published last month, Fritz asked an audience of 55 volunteers to listen to and compare three new violins with three Stradivari violins in a concert hall in Paris. The audience consisted of those with relevant expertise, such as violin makers, players, musicians, audiophiles, music critics, composers and acousticians. Without knowing whether they were listening to old or new violins, the audience decided that new violins not only projected better, but that they also generally preferred their sound over old violins. Fritz repeated the experiment in New York and gained similar results.”

“Fritz’s study may have proven that new violins sound just as good old ones when we are unaware of their age, but in reality no violinist plays in such blind conditions, and most concert programs will inform audiences if the soloist is playing on a priceless antique. We do not play or listen to music in isolation: anything from the concert venue, the time of day, to knowing that the soloist is playing on a centuries-old instruments affects our response. The staunch defenders of Stradivarius’s superiority illustrate that we still find something special in the long histories of old violins. Our romantic obsession with old objects and the stories that surround them continues, meaning there is little more that science can do to dispel the Stradivarius myth.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Luxury Retail Is Bleak on Bleeker Street

The New York Times: “How Bleecker went from quintessential Greenwich Village street, with shops like Condomania and Rebel Rebel Records, to a destination for Black Card-wielding 1-percenters, to its current iteration as a luxury blightscape is a classic New York story. It involves a visionary businessman, a hit HBO show, an Afghan immigrant, a star architect, European tourists, aggressive landlords and, above all, the relentless commercial churn of Manhattan.”

“In 1996, Magnolia Bakery opened at 401 Bleecker … It was just another local business, like the bodega operated by Turks or the Greek diner Manatus. But on July 9, 2000, Magnolia was featured on ‘Sex and the City’ … The 30 seconds of Carrie Bradshaw and her friend Miranda eating cupcakes outside the bakery were all it took to turn the street … The Magnolia crowd in part convinced Robert Duffy, then the president and vice chairman of Marc Jacobs, that the company should open a store nearby … the arrival of the first Marc Jacobs store, with its trendsetting clothes and clientele of fashion editors and celebrities like Sofia Coppola, was the tipping point.”

“And then? Blowback. While quirky independent stores couldn’t afford the new Bleecker, it became apparent over time that neither could the corporate brands that had remade the street. An open secret among retailers had it that Bleecker Street was a fancy Potemkin village, empty of customers. Celebrities shopped there because they wouldn’t be bothered … The original Marc Jacobs store on Bleecker that started the boom” is now empty, “its windows blacked out … Marjorie Reitman, who has lived in the Village for 43 years …has an idea for that space and the other empty stores that dot Bleecker Street like missing teeth in a very expensive mouth.” Her thought: “They should all be pot shops. Seriously. I’m not kidding. I can’t imagine what else could go in and pay the rent.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail