Liz Claiborne Inc. (New York) has announced that it will close all 22 Liz Claiborne brand specialty stores in the United States by the end of the second quarter of 2003.
The fashion designer/retailer said it will convert five of those locations to either a Mexx or Sigrid Olsen format, two of the brands it owns.
“We believe that the Liz Claiborne consumer is well served by a wide department store distribution that allows her to purchase Liz Claiborne products at approximately 2000 locations nationwide,” said chairman and ceo Paul Charron. “To this end, Liz Claiborne brand specialty stores are essentially redundant. Moreover, we have determined a need to distinguish between retail brands and those wholesale brands which are widely distributed, as evidenced in the decision we made to separate the Elisabeth and Liz Claiborne Woman brands two years ago.”
The company will also open four new stores, both Mexx and Sigrid Olsen. The purpose, the company said, will be to gauge consumer response to both retail concepts. To this end, a separate specialty retail value chain is in place to ensure that product-development, merchandising, sourcing, logistics, presentation and management are retail-specific.
The first Mexx store is expected to be at 650 Fifth Ave. in New York, the present location of the flagship Liz Claiborne specialty store, scheduled to open in fall 2003. It will showcase Mexx products in almost 11,000 square feet of selling space designed to mirror the brand's international presentation.
“Opening Mexx stores in the United States is part of our overall strategy to sell Mexx apparel and accessories on a global basis,” Charron said. “Mexx's unique attitude and perspective fill a fashion niche, and consumers have responded wherever this brand has been offered.”
Charron said that approximately 31 percent of Mexx's volume outside North America is done through specialty retail channels; 74 percent of Mexx's volume in Canada is done in Mexx specialty stores. “Judging by the success of Mexx in Europe and Canada,” he said, “the modern look of this brand should be very appealing to the U.S. consumer.”
Liz Claiborne Inc. purchased Netherlands-based Mexx Group B.V. in 2001 and Mexx Canada in 2002. Mexx products are sold in over 7500 locations in more than 40 countries through owned and operated retail stores and premium department, chain and specialty stores throughout Europe, the Asia Pacific region, Canada and the Middle East. In its U.S. debut, the Mexx line will include European-inspired apparel and accessories targeting men and women aged 20 to 40.
The first Sigrid Olsen store, featuring lifestyle sportswear, is scheduled for late summer 2003 in the Boston area. “Opening Sigrid Olsen stores represents an opportunity to capitalize on the brand's current success resulting from its unique aesthetic and brand positioning,” Charron said. “It targets one of the most robust demographic sectors in specialty retail.”