Hello-Hello, and welcome to a Tuesday.
Today we have a number of headlines we thought you might enjoy, all related to companies trying to stay alive in a very tough retail climate. We begin with an update an Coach. Some may recall the company has been trying to change direction (more in this post), moving away from bags that look like this…
Coach
To bags that look more like this.
Coach
Less logo presence and more heritage craftsmanship have been part of the effort to bring back some of the core customers lost because of the overtly promotional products.
It is proving to be something of an uphill climb for the brand. More from a story in Women’s Wear Daily (subscription req’d.) talking about the company’s recent financial report:
The “disappointing” results were pulled down by the company’s women’s handbag business in North America…
In addition to re-positioning the brand in terms of what the products look like, Coach also plans to boost its offerings in several categories, including clothing, shoes, jewelry and watches. Below, a look at some of this spring’s small leather goods.
Coach
Coach also will expand its footwear offerings.
Coach.com
In looking at the website one sees a mix of items.
Coach.com
These are from this spring’s line.
Coach.com
The outerwear has appeal.
Coach.com
The company is even going to change its window displays, upping the amount of clothing and other accessories in the displays.
Via Women’s Wear Daily
When looking at accessories one sees some darling pieces.
Coach.com
Those not troubled by logophobia will still find plenty of pieces, yet they seem to occupy a much smaller percentage of the overall merchandise mix.
Coach.com
However, if shoppers are looking for lower prices on the new Coach styles they will be disappointed. The company hopes to grow its collection of items that sell for more than $300. Back to the WWD story.
In the most recent quarter, Coach said it’s making headway with bags priced over $400.
“It validates our belief that there’s a larger opportunity at higher price points,” the ceo added.
Instrumental to Coach’s transformation is a curated capsule collection that will flow into stores on a quarterly basis and inform the fashion direction of the brand’s collection. The collection of looks will encompass handbags that range from $500 to $800, and comparably priced footwear and apparel.
I’m not sure how many customers will want to purchase Coach items in that price range. $500 handbags are a big ask these days, especially for a brand that has lost some of its luster. The last time we wrote about Coach trying to re-establish itself the comments (and emails) were mixed. Some customers have been driven away by the volume of merchandise covered with logos, others by the proliferation of Coach Outlet stores, destroying the aura that a Coach bag was something “special”.
We will have to watch and see how things go. It would be splendid if Coach could return to its glory days. I’m just not convinced that is possible, especially in this economic climate.
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Another storied company making an uphill climb is on our hit parade, JC Penney, or ‘JCP’, as the company is branding itself. Many are familiar with Penney’s continued efforts at reinvention, especially the concurrent schizophrenia in its pricing policies.
- First it was “no more sales,” they were replaced with “Every Day pricing” that was accompanied by “Monthly Sale” merchandise and “Clearance” products, marked down items sold at clearance prices on the first and third Friday of each month. (That’s where the color-coded signs came in, to help shoppers keep track of what was priced how.) One needed a flow chart to keep track of it all, let alone purchase things.
- Customers had a very tough time keeping track (or simply stopped trying) so there was the big marketing campaign with Ellen.
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JCPenney.com
- Then last August year the folks in charge decided they would drop the month-long specials and put more merchandise on clearance.
Well, here is the latest as of last night, from AP via USA Today.
NEW YORK (AP) — J.C. Penney is bringing back sales.
The struggling department store chain this week will begin adding back some of the hundreds of sales it ditched last year in hopes of luring shoppers who were turned off when the discounts disappeared.
Part of the store’s strategy is opening mini- boutiques within existing stores to showcase certain brands only Penney’s offers, like Liz Claiborne, Mango, or their ‘Levi’s Denim Bars.’
JC Penney Facebook Page
Now the company will change signage and/or price tags on products to start showing a “MSRP” (manufacturer’s suggested retail price) and Penney’s “everyday” price. Back to the AP story:
To promote the strategy, Penney on Wednesday will begin airing TV, print and digital ads. One TV ad compares a $9 polo shirt under its store brand Arizona with $19 “elsewhere.” ”Two polos, same color, same vibrant, same details, same swing, same swagger, different prices,” the ad says.
Here’s a sample of the new marketing materials.
JC Penney
Yours truly is a huge fan of the man in charge of all this, Ron Johnson, he was the driving force behind Apple’s successful retail stores. He is bringing in some remarkably successful designers and brands, including Martha Stewart, Lulu Guinness, Sephora, and as of this week, Nanette Lepore’s new line for Juniors (shown below), L’Amour. (The new collection isn’t supposed to be available until Thursday, but it is online now.)
JC Penney Courtesy Images
I hope the company can be saved, it has been a great American retail institution. But at this point it is tough to see it overcoming both its internal challenges and decisions, as well as the economic situation.
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Our final reinvention tidbit is about the founders of St. John Knits. First, a quick glance at some of the spring 2013 styles, St. John itself has been through an overhaul.
St. John Knits
Some readers may remember that at one time Kelly Gray, daughter of St. John’s founder, was the face of the company in its advertising.
When sales started to decline she was replaced by others in the ads, like Kate Winslet and Angelina Jolie. Neither represented the brand’s target customer well, in either age or personal style.
Ultimately Marie Gray, the founder, and Kelly left the company. Now they are launching a new line of clothing called Grayse.
Grayse
The first collection is due out shortly, many pieces are already available at Neiman Marcus, Saks will also carry the line. The collection can also be viewed at the new Grayse website.
Grayse
The lines are classic and the palette elegant, probably not the sort of thing your trusty scribe will be adding to the wardrobe. But it is nice to see Marie and Kelly Gray launching a new label.
Do let us know your thoughts on any and all of these brands!
I used to really love Coach shoes- they were nice quality, classic styles that looked great in an office. I had a few pairs of pumps and ballet flats. I’d be interested in trying them again- nothing has been remotely “classic” or interesting in their shoe line for years….but I’ll be waiting for them to go on sale at Macy’s or Nordstrom before I give them a 2nd try.
I struggle with Coach. I hated {and continue} to hate their logo-mania items. I really love the new heritage pieces. They’re gorgeous and at least appear to be well-made.
But, not to be a total snob, if I’m going to spend $500 on a bag, I’d rather just spend a few hundred more and get a bag that has a little more cache. Coach really ran their good name into the ground and I have a hard time paying $500 for something that I still mentally associate with some serious ugly!
I love Coach’s new Legacy pieces– they really do resemble the Coach bags from 20+ years ago that my aunt left me. I was excited to see that that was the direction they were headed in again, but I don’t think $400-500 Coach bags are going to fly. There are many other brands I would spend that amount on first, ones I know aren’t going to throw in some crazy graffiti logos like we have now all witnessed a certain brand do.
I used to love Coach bags. They were timeless, well-made, and well priced for something that was still a luxury item. I had quite a few of their purses and loved them. Then it all went to pot. It seemed like they were trying to attract a younger and flashier demographic and I got turned off with the giant Cs everywhere and all of the gaudiness and sequins. I missed the days of the understated, solid color leather totes. I am very excited to see that they are returning to their roots, but I agree with Belle oh Heels. I can not see myself paying $500+ for a Coach bag. I’d rather put that money towards an LV or Kate Spade purse. I think probably $300 would be my cut off for a Coach price point.
I am still confused about JCP.The rebranding and sales and all that is too much for me!
Happy Coach is improving and moving beyond some of the hideous looks it became famous for (go figure) I never “got it”. The new streamlined no logo look is so much sleeker and more appealing. Love the flats too. JCP might have a hard time, I never thought that campaign would work and its kind of hard to come back now, but much luck to them.
Wishing you a fabulous day!
I truly hope that Coach recovers. I saw some bags they were doing with customizable options, including tassels, that seemed to occupy a good niche. I don’t have the same loyalty to JCP. As for St. John’s I always WANT to like their stuff, but it never quite works for me. If the new line is going to offer dress-up shorts, I fear we shall not be forging a long relationship in the new venture either;).