Goop pop-ups aren’t going anywhere and there’s even more permanent retail on the horizon.
Gwyneth Paltrow’s multihyphenate site will be showcasing a host of goods at two new pop-up shops in Aspen, Colo., and Sag Harbor, N.Y., over the summer, both of which are about 1,600 square feet, and there will be a few more later this year. This is more openings that Goop has had in previous years, but it’s in line with Goop’s overall growth.
Goop recently closed a $50 million series C funding round, at least some of which will be used to bring Goop to parts of Europe. And last year, Goop tripled its year-over-year revenue in 2017 as its multibrand business grew 250 percent during the year and its own brand grew 400 percent and is on track to make up more than 50 percent of the company’s e-commerce revenue in 2018. This year, revenue is expected to double.
Blair Lawson, Goop’s chief merchandising officer, said pop-ups, like with many brands, serve as “an entrance to prospective markets” and a way to get a physical form of the brand in front of new and maybe even key shoppers, like the monied crowds that tend to vacation in the Hamptons and Aspen. Goop’s typical consumer has a household income of over $100,000.
Last year’s Goop pop-up in Amagansett, N.Y., was the “best-performing store to date” calculated by sales per day, according to Lawson, but Sag Harbor appealed this year because of its “classic” quality and the fact that it’s “a little less trendy.” She declined to give specifics around sales or traffic at the stores, but said they’re “a brilliant marketing tool” that offers Goop “valuable data about shoppers and specific markets.” There tends to be a spike in online traffic after a pop-up opens, too. When Goop’s current Dallas shop opened, site traffic rose 33 percent.
As for Aspen, a first for Goop, Lawson said first-party audience data led them there. “Data tells us that our customer is there and what she likes to purchase.” But, maybe most importantly, the pop-ups are essentially all profit for Goop.
Before a new shop opens, the company coordinates a variety of paid online, social media and experiential tie-ups with the brands it’s decided to offer, leaving the upfront shop costs covered before it even opens. Chief revenue officer Kim Kreuzberger, who until March was Goop’s head of brand partnerships, said Goop has “a unique content meets commerce platform” with its offering of digital, social, print and online and physical retail for brands, all of which can figure into a given partnership.
As for Goop’s permanent retail footprint, that’s set to expand, too.
Goop’s only permanent location near its headquarters in Los Angeles, like the pop-ups, is big on brand events. The store hosts something, be it a skin-care tutorial with May Lindstrom or a talk on tantric sex, four to six times per month. Again, Lawson declined to disclose specifics around sales or traffic at the store, beyond saying the company is “thrilled” with its performance. It seems likely that it is going pretty well, as more permanent shops are on the way.
“Expect to see us in New York soon and perhaps even in international markets,” Lawson said.
Asked whether Goop seeks out brands for partnerships or if it’s the other way around, Kreuzberger said its “a balance,” but when Goop first started its pop-ups in 2015, it was the brands that “started showing interest.” The whole strategy seems to have evolved from there.
“We want a curate product that isn’t everywhere, to create a discovery platform with the consumer experience, whether its Prada or Reebok,” Kreuzberger added. “We started packaging that and found a lot of success and high sell-throughs.”
As for Goops broader media strategy, Kreuzberger said its 75 percent focused on experiential with brand partnerships at the center, including during its popular, if criticized, Wellness Summit, a second of which is coming to L.A. next month.
“We’re lucky because we have primary revenue stream through e-commerce, so media for us, we can remain really discerning,” Kreuzberger said. “We’re not trying to grow the media business like maybe other big publications are and that’s a luxury.”
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