The October 2017 edition of Fashion Mannuscript contained an article entitled “Retail is Alive; and Maybe Even Well,” which concluded that retail will continue to be alive although struggling a bit in these days of changing needs and values.
Today we look back on 2017 and note that the year witnessed 21 retailers filing bankruptcy. In 2018, more have followed suit, including Carson Pirie Scott II, Inc., which includes Herberger’s, Bon-Ton, Boston Store, and McRae’s, Inc. JC Penney plans to close eight more stores in 2018 after closing nearly 140 stores in 2017—it now has 875 stores total.
In an article by Lindsey Rupp, Chloe Whiteaker, Matt Townsend, and Kim Bhasin entitled “The Death of Clothing,” the authors stated, “Apparel has simply lost its appeal. And there doesn’t seem to be a savior in sight. As a result more and more apparel companies—from big name department stores to trendy online startups—are folding.”
On the other hand, all is not gloom and doom. Fashion sources, including Sara Ehler, Kristopher Fraser, and Vivian Hendriksz, have reported that Mansur Gavriel opened a 5,000-square-foot boutique in West Hollywood, CA, featuring its iconic bucket bag, ready-to-wear, and furniture. Another report announced that iCustom opened six retail stores in the San Francisco Bay Area offering customized apparel. Bodega opened an 8,000-square-foot store in downtown Los Angeles offering streetwear clothing and other branded apparel. Philipp Plein opened a pop-up store in SoHo to present his No Mercy on Mercer Street styles and his other existing brand collections.
Ross Dress for Less opened a new 24,713-square-foot store in the Rosemead Place Shopping Center. That brings the Ross Dress for Less stores to a total of 292 in California and 1,340 stores in 36 states. Los Angeles’ Band of Outsiders launched a new pop-up store at Fred Segal in West Hollywood February 8-18. Hennes & Mauritz (H&M) is launching Afound, an off-price marketplace to be operating this year, purported to be a “style-and deal-hunting paradise,” offering discounted fashion and lifestyle products. Bottega Veneta plans to open a new Maison on Madison Avenue in New York with five floors and nearly 15,000 square feet of space. It will be the largest Bottega Veneta store in the world.
Under Armour executives have launched a new brand called Revtown, which features men’s performance denim and casual shirts. The company is planning to launch a women’s collection in 2019. MyTheresa.com is planning a new website for luxury shoes from Gucci, Miu Miu, Prada, and other fashion brands. It is to be called MarthaLouisa.com.
The California Apparel News reported “an air of optimism” that blew through the various trade shows held in Las Vegas in February. Shows at the Las Vegas Convention Center, the Mandalay Bay Convention Center, and several other venues were well attended. Many of the booths were filled with onlookers and buyers filling out order forms, and there was excitement in both the women’s and men’s sites, with colorful offerings in everything from men’s ties and shirts to women’s casual and formal apparel.
Harper’s Bazaar’s 2018 predictions include sales based on ultraviolet being the color of the year, art, floral and plaid prints, oversized trench coats, fringe on everything, enhanced fanny packs, fashionable workout gear, clear plastic outerwear, and dark denim for everything. If the predictions are correct, we should see retail fashion sales getting a major boost during the year.
We note that the Westfield Century City Center in Los Angeles has become a major destination with leading department stores, restaurants, an enhanced food court, live music concerts, makeup facilities, and cozy seating areas with fire-circles to romanticize the atmosphere. New retail tenants are opening every week.
All of this just goes to illustrate the changing landscape of the retail apparel business. With stores downsizing and closing there is also the upbeat atmosphere of existing manufacturers updating their business plans, new retail locations opening, and new manufacturers coming into the marketplace. This is evidence that there is a place for brick-and-mortar stores as well as internet shopping sites. So, retail is not dead, and these snippets appear to be clear indications that retail may in fact be alive and well—although in an ever-changing format.
Benjamin S. Seigel, Esq.
Counsel to Greenberg & Bass, LLP
818-382-6200
bseigel@greenbass.com
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