Wild Times
It’s pretty wild out there for the big multi-brand stores at the moment.
No wonder they’re having such a hard time, considering every bloody store carries the same product whilst trying to target the same customer.
One of the main reasons for the department store doppelgänger is that their largest revenue driving super-brands are increasingly concession based, making up anywhere between 50-70% of their offer. And we all know what a concession based model means…the brand calls the shots, rendering the stores edit less nuanced.
It might feel counterintuitive during times of flux, but now is not the time to play it safe. So, as the mass consolidation continues and the super-brands snatch more and more control, it’s never been more important for multi-brand stores to nail their niche.
I just came back from Paris market where I was chatting with a CEO of a privately owned luxury brand, it was interesting to hear that some of the smaller multi-brand boutiques are having a wonderful time, sighting Elyse Walker and Kirna Zabete as two of the more positive stories coming out the US right now. Each store has around 7 locations and is putting down orders which match that of the biggies. I think this shows there is a growing trend towards greater curation, having a point of view and not trying to be all-things-to-all-people.
Look, I get that niche doesn’t always pay the bills, and if 60% of your business is generated from concession based super-brands, then you obviously need to protect these sales. But let’s face it, nobody needs convincing to buy super-brand product, the brands themselves have done the hard work already. So it’s about the big stores being clever with how they choose to expose this product to customers without it bulldozing their entire store identity.
So buy those (slightly) obscure designers and treat them like super-brands - get them in your seasonal ad campaign, lay on a VIP trunk show, hell, give them their own pop-up. Do whatever you need to do to carve your identity and separate your store from the rest.
Some customers may stay for the unknown, some may stay for the familiar, but at least you’ve stood out and got them through the door.