Plenty’s happening in West Coast retail news. Here’s your briefing on the latest:
Online fashion retailer Lulus marks its return to brick-and-mortar in a big way.
Fifteen years after moving away from physical retail, the Chico, Calif.-based company started by mother-daughter duo Debra Cannon and Colleen Winter opens a 6,000-square-foot, Melrose Avenue store on Friday.
The space is near Crossroads Kitchen on a street where the company tested a pop-up in 2019 at a location Lulus said proved to be “a business hub.”
“Our decision to open our first retail store in Los Angeles holds profound significance for our brand. By opening up this retail location, we are testing and learning as we expand the reach of our brand,” CEO Crystal Landsem said in a statement. “More importantly, we’re attracting new customers, enabling them to experience luxury fashion that’s attainable, and bringing them in as lifelong fans to the community.”
The store will be stocked with women’s separates, dresses and accessories. New inventory’s expected on a weekly basis. An appointment-only bridal boutique bows within the space early next year.
Notable: Lulus is about a five-minute walk from where the former Revolve Social Club sat as an event and private shopping space. The door also marked Revolve’s first dabbling in brick-and-mortar after adeptly navigating and winning in digital marketing and commerce.
That Lulus’ space – designed with social media-worthy backdrops, planned influencer and private shopping events – is coming to the same street indicates an opportunity it sees to make further inroads with the Millennial and Gen Z consumer, even in a challenging market. It comes as fast-fashion retailer Shein also seizes on growth opportunities by reportedly filing confidential IPO paperwork and consolidating the fast-fashion landscape (buying Missguided and striking a partnership with Forever 21’s operator this year).
Numbers: Lulus went public in 2021, about 25 years after its founding. The company became a digital-only business in 2008 and has made a name for itself in occasionwear, often a go-to for trend-right dresses at affordable prices.
The operating environment’s tough for many retailers. Lulus faces the same inflationary headwinds and softening consumer demand as others.
Net revenue in its quarter ended Oct. 1 dipped 21 precent to $83.1 million in a market heavy with markdowns. The company swung to the red with a net loss of $3.9 million, from net income of $900,000 a year earlier.
Fear of God Athletics Puts on Immersive Show
Los Angeles brand Fear of God’s much buzzed about Athletics sub-label at Adidas is now out and being paired with the opening of four physical concepts dubbed The Athletics Atmosphere. The first of those experiences kicked off in Boyle Heights Thursday. It remains open through Dec. 3, before opening for four-day pop-ups in Brooklyn, Beijing and Shanghai.
Notable: Founder Jerry Lorenzo said the release of the Fear of God Athletics label now “completes the brand architecture of Fear of God,” as it joins the company’s namesake and more budget-friendly Essentials line.
The company’s got lofty goals for itself with Lorenzo telling WWD the business could grow to rival that of Nike Inc.’s Jordan Brand. Jordan revenue during the fiscal 2023 year ended May 31 to be $6.6 billion, according to Nike’s annual report.
Bogner Bookends Country
Munich-based fashion sportswear company Bogner has found new footing on Sunset Boulevard, with the opening of a store at the Fred Segal compound.
Bogner now finds itself neighbors with Fred Segal and Kith at the West Hollywood mixed-use property.
The 2,500-square-foot store follows pop-up tests on the West and East coasts and was paired with the opening of a permanent store on Madison Avenue in New York.
Notable: The more than 90-year-old brand said the openings are part of a U.S. growth strategy, given the market currently generates about a quarter of its overall revenue.
Opening stores now makes sense for those with the funds to do so as outdoor brands clamor to seize on momentum that began during the pandemic when more people sought to get outside. While some sports have seen a plateau or fall from the peak, many ultimately still notched net gains and are up from pre-pandemic times.
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