Lord & Taylor is entering the outlet business, a move that reflects mounting interest in the sector among consumers, retailers and developers.
Lord & Taylor executives said Thursday the department store chain will open its first outlet, a 15,000-square-foot unit, in mid-February at the Jersey Gardens outlet center in Elizabeth, N.J., located about 18 miles west of Manhattan. The unit, which will be in New Jersey’s largest outlet mall, is considered a test that could lead to additional locations, officials said.
The outlet sector, along with the Internet, is one of the few bright spots in the depressed retail landscape. It is attracting more and more consumers in what many retailers call a “secular” shift to trading down amid economic upheaval. Lower occupancy costs also make outlets desirable expansion strategies for retailers and brands.
Macy’s might be the next department store player to enter the outlet arena. Officials have acknowledged that the company is exploring the possibility, but have yet to announce a site.
J.C. Penney Co. Inc., however, has long operated outlets, which now number 19. They are primarily geared to clear catalogue and Internet inventories.
Last week, Simon Property Group Inc. put the spotlight on the sector by announcing it would buy Prime Outlets for $2.33 billion. Simon is likely to remerchandise some of the Prime portfolio, which consists of22 outlet centers in major markets such as Washington, Baltimore, and San Antonio, as well as tourist destinations, including Orlando, Fla., and Williamsburg, Va. There are also some incomplete projects that Simon could finish, posing more opportunities for outlets to expand.
On the higher end, Neiman Marcus Inc. and Saks Inc. are getting aggressive with outlets. Saks in April 2008 introduced a 26,400-square-foot prototype with a cleaner, upscale look in Orlando’s Prime Outlets International Center.
This month, Burt Tansky, Neiman Marcus’ chairman and chief executive officer, acknowledged that the company’s Last Call outlets were outperforming the regular stores, and that the fleet of 28 units is likely to grow.
“Our plan is to roll out more stores over the next four, five, six years, and have them located closer to the consumer that has an interest in that category of business….Let me assure you, we will do nothing to diminish the value of our brand and reputation in any way,” Tansky said.
Retailers have to be careful where they open outlets. If they are too close to full-price stores, they could cannibalize the business. Retailers also must be concerned that their outlets don’t cheapen the perceptions of the store brand.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye