Retail: New Classification and Demographic Specialization Stores
The department store sector continues to struggle and while they are attempting to differentiate themselves through private label and exclusives we are also noting a rise of stand-alone stores targeting a certain demographic or classification. Most notably we have seen Saks (TSE:HBC) create specialized stores.
Last year Saks also opened “THE COLLECTIVE” store geared towards millennial women with contemporary fashions in Brookfield place and a stand-alone footwear store SAKS 10022-SHOE, in Greenwich, CT. More store openings are planned to open in 2017, such as “THE VAULT” a fine jewelry store again in Greenwich, Ct.
Large brands are also opening specialized stores to target certain customers and make sense of their large collections. HERMÈS FRAGRANCE LIBRARY, has opened in Brookfield Place, NYC, a boutique dedicated solely to perfume, home fragrance and scented bath and body products. (Fragrance is a lucrative and steadily growing sector for luxury brands.)
As doors continue to close in the retail sector it has become crucial for stores to stand out from the pack. With retailers and brand segregating parts of their business through brick and mortar, they can target the customer in a more customized fashion.
We expect more retailers and brands to continue to curate their product offering this year as they tailor their strategies to consumer interest.
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