story about filenes in todays wwd. info about the tj maxx designer scheme as well in here. im glad the new filenes store in boston will have fitting rooms!!
i wont have to accidentally see women wearing pantyhose with no underwear at that location!
Filene's Basement: An Icon Expands Base
By David Moin
Filene's Basement, which is steeped in retail lore, is looking to the future.
The off-price chain has started an expansion program — four stores are being launched this fall — highlighted by the opening of a second Boston unit on Wednesday in the Back Bay neighborhood. It's being previewed this evening for special customers who get first crack at the goods, generally designer and brand name labels at 30 to 60 percent off regular prices.
The original flagship has been operating in the Downtown Crossing section of Boston for almost 100 years.
"Our roots are here in Boston," said Mark Shulman, president. "Downtown will always be our flagship and it's a fantastic store. But it's very much dated."
Dated is an understatement. The 125,000-square-foot flagship, opened in 1908, epitomizes bargain basement. It is on two below-ground levels, the floors and walls are bare, and the merchandise is piled high in bins with hand-scrawled lettering. There was no fitting room until 1989, and it was not unusual for women to slip pants on under a skirt, or even to disrobe in the aisles to try on a coveted designer piece.
Some women still take liberties for convenience, considering it's a big store with two selling floors and only one fitting room, on the lower level. The flagship is considered the third most popular tourist attraction in Boston (next to Faneuil Hall Marketplace and Fenway Park), drawing some 15,000 visitors a day, the company said. The store is legendary also because it piloted an automatic markdown policy that continues only at this location; in years past, it was tried at one or two other sites but discontinued because the policy is effective only in very high-traffic areas.
The new Back Bay store, at 497 Boylston Street, is a different story.
"We're treating it like a mini-flagship that will be reminiscent of the store on Union Square in New York City, but taken to the next level," Shulman said.
The branch will have carpeting, wainscoting, sconces, crown molding, contemporary fixtures, video monitors of fashion shows and mannequins in designer outfits, and there will be two doormen at the entrances on Newbury and Boylston Streets. There are also 24 fitting rooms. The Boylston Street entrance opens into the 8,000-square-foot men's department with designer suits, shirts, ties, sportswear, outerwear and basics. The 30,000-square-foot second level will house misses', junior and children's fashions, plus accessories, jewelry, men's and women's shoes and home goods. Industry sources estimated the store would do $25 million to $30 million in annual sales; the flagship, the top-volume unit in the chain, generates $60 million to $65 million in sales.
The 75,000-square-foot Union Square store, opened two years ago, is estimated to do $45 million to $50 million in annual volume, the sources said. Typical of other units, it's heavily merchandised with a wide variety of well-known designer and brand labels — a few items from each, not entire collections.
On a recent visit, the store offered in women's Blue Cult jeans at $49.99, discounted from $150; DKNY jeans at $39.99, from $69; Jones New York hoodies at $29.99, from $59; Ralph Lauren cotton sweaters at $49.99, from $98, and Anne Klein wool viscose suits, originally $480, at $149.99. The most expensive designer items are flagged in outposts called The Vault, scattered around the store, and certain items are under lock and key, like a Bulgari bag at $2,500, marked down to $959.99. A Prada bag was marked down to $149.99 from $495.
The mix has been upgraded since Filene's Basement was bought out of bankruptcy in 2000 by Retail Ventures Inc., which also owns DSW Shoe Warehouse and Value City Department Stores.
"We put a premium on designer through the bridge and contemporary markets," representing about 25 percent of the business, said Shulman, a former Brooks Bros. chief operating officer.
Men's clothing is another major category, representing about 20 percent of volume, with strength in suits, sport coats, outerwear and young men's dress shirts, like those from Kors, marked down to $39.99 from $75.50, Shulman noted. The Basement also sells accessories, shoes, fragrance, luggage, gourmet food, children's wear, home goods and intimate apparel. About 10 to 15 percent of the goods are bought directly from factories in Europe; 10 percent from jobbers, and the rest from the market, which allows the Basement to sell the goods about 30 to 60 days after department stores start selling them.
"Our customer is very fashion-savvy and smart, and really wants better merchandise," Shulman said. "They just don't want to buy for the sake of the price. They really want of-the-moment fashion. That's a major difference from the way it was done in the past," when more of the goods were leftovers or "pack-aways" that could be stored in a warehouse, as required by vendors, for a year before being placed on a selling floor.
"This is the only off-pricer where the name recognition is enormous and synonymous with off-price designer goods, even more than Loehmann's," observed Isaac Lagnado, president of Tactical Retail Solutions, a market research and consulting company. "Everybody knows the Filene's Basement legend of disrobing in the aisle. It's the stuff of urban legend. There's a great possibility for growth, considering the Basement's relatively small volume."
Filene's Basement operates 27 units that generated $430 million in sales last year, but with Retail Ventures pushing expansion, volume is projected at more than $600 million by the end of 2007. Store openings are set for Springfield, Pa., on Sept. 21; Warrensville Heights, Ohio, on Oct. 26, and Levittown, N.Y., on Nov. 9. Another four or five are being planned for 2007. On Aug. 31, a store opened in Hunt Valley, Md. Before that, the last store opened was in March 2005 in Rockville, Md.
However, Lagnado pointed out that "as the chain gets bigger, the availability of recognizable merchandise becomes a bigger challenge. The larger it gets, the bigger the monster you have to feed." The growth of TJX and Marshalls, divisions of the $16 billion TJX Cos., has generated specialty production just for them, but it's not of a highly exclusive nature, Lagnado added. "Nautica, Jones, Liz essentially manufacture whole rungs of merchandise just for that channel."
TJX, however, is moving up the price spectrum, posing another potential challenge to Filene's Basement. According to Mark Montagna, vice president, specialty retail, at C.L. King & Associates, TJX is developing a better sportswear department that will increase the average ticket price at the chain. Initially, it will be tested in 25 stores, and, if all goes well, could be rolled out to a few hundred, but this year the impact won't be very material.
"Filene's Basement, along with Saks Off-5th and Last Call [Neiman's clearance outlet], is viewed as a class apart," Lagnado said. "It's less embarrassing to have your stuff sell there," as opposed to other off-price outlets. "TJX needs huge orders to push through the pipeline. That runs counter to real exclusive brands. Off-5th and Basement typically locate in more upscale centers or downtowns. TJX is much more populist."
There's another concern that comes with growth. The Back Bay store could cannibalize sales from the flagship. "In the beginning, there is always that chance," Shulman acknowledged. "But there really shouldn't be too much cannibalization because it's a very different customer that shops Back Bay."
The same issue arose when the Union Square store opened and was viewed as possibly siphoning sales from the unit just a few blocks uptown in Chelsea. "The first year, there was cannibalization. Now, Chelsea is exceeding the numbers it posted prior to the opening of Union Square," Shulman said. "It took a year for that to happen, and the store in Union Square is doing great." Filene's Basement operates a third Manhattan store, at Broadway and 79th Street.
At the Downtown Crossing flagship, sales slipped a bit after the Filene's store located right above the Basement closed. Filene's was a unit of Federated Department Stores, which sold the building to Vornado Realty. Vornado plans to renovate the property and add some other retailers. The Filene's Basement flagship will continue to operate and get a facelift, though the ambience will be predominately unchanged from bargain basement, Shulman said.
In Boston, the Filene's closing raised speculation about the Basement's future. "It required a lot of marketing and p.r. work to tell people we are here to stay,'' Shulman said. "We are not leaving."
i wont have to accidentally see women wearing pantyhose with no underwear at that location!Filene's Basement: An Icon Expands Base
By David Moin
Filene's Basement, which is steeped in retail lore, is looking to the future.
The off-price chain has started an expansion program — four stores are being launched this fall — highlighted by the opening of a second Boston unit on Wednesday in the Back Bay neighborhood. It's being previewed this evening for special customers who get first crack at the goods, generally designer and brand name labels at 30 to 60 percent off regular prices.
The original flagship has been operating in the Downtown Crossing section of Boston for almost 100 years.
"Our roots are here in Boston," said Mark Shulman, president. "Downtown will always be our flagship and it's a fantastic store. But it's very much dated."
Dated is an understatement. The 125,000-square-foot flagship, opened in 1908, epitomizes bargain basement. It is on two below-ground levels, the floors and walls are bare, and the merchandise is piled high in bins with hand-scrawled lettering. There was no fitting room until 1989, and it was not unusual for women to slip pants on under a skirt, or even to disrobe in the aisles to try on a coveted designer piece.
Some women still take liberties for convenience, considering it's a big store with two selling floors and only one fitting room, on the lower level. The flagship is considered the third most popular tourist attraction in Boston (next to Faneuil Hall Marketplace and Fenway Park), drawing some 15,000 visitors a day, the company said. The store is legendary also because it piloted an automatic markdown policy that continues only at this location; in years past, it was tried at one or two other sites but discontinued because the policy is effective only in very high-traffic areas.
The new Back Bay store, at 497 Boylston Street, is a different story.
"We're treating it like a mini-flagship that will be reminiscent of the store on Union Square in New York City, but taken to the next level," Shulman said.
The branch will have carpeting, wainscoting, sconces, crown molding, contemporary fixtures, video monitors of fashion shows and mannequins in designer outfits, and there will be two doormen at the entrances on Newbury and Boylston Streets. There are also 24 fitting rooms. The Boylston Street entrance opens into the 8,000-square-foot men's department with designer suits, shirts, ties, sportswear, outerwear and basics. The 30,000-square-foot second level will house misses', junior and children's fashions, plus accessories, jewelry, men's and women's shoes and home goods. Industry sources estimated the store would do $25 million to $30 million in annual sales; the flagship, the top-volume unit in the chain, generates $60 million to $65 million in sales.
The 75,000-square-foot Union Square store, opened two years ago, is estimated to do $45 million to $50 million in annual volume, the sources said. Typical of other units, it's heavily merchandised with a wide variety of well-known designer and brand labels — a few items from each, not entire collections.
On a recent visit, the store offered in women's Blue Cult jeans at $49.99, discounted from $150; DKNY jeans at $39.99, from $69; Jones New York hoodies at $29.99, from $59; Ralph Lauren cotton sweaters at $49.99, from $98, and Anne Klein wool viscose suits, originally $480, at $149.99. The most expensive designer items are flagged in outposts called The Vault, scattered around the store, and certain items are under lock and key, like a Bulgari bag at $2,500, marked down to $959.99. A Prada bag was marked down to $149.99 from $495.
The mix has been upgraded since Filene's Basement was bought out of bankruptcy in 2000 by Retail Ventures Inc., which also owns DSW Shoe Warehouse and Value City Department Stores.
"We put a premium on designer through the bridge and contemporary markets," representing about 25 percent of the business, said Shulman, a former Brooks Bros. chief operating officer.
Men's clothing is another major category, representing about 20 percent of volume, with strength in suits, sport coats, outerwear and young men's dress shirts, like those from Kors, marked down to $39.99 from $75.50, Shulman noted. The Basement also sells accessories, shoes, fragrance, luggage, gourmet food, children's wear, home goods and intimate apparel. About 10 to 15 percent of the goods are bought directly from factories in Europe; 10 percent from jobbers, and the rest from the market, which allows the Basement to sell the goods about 30 to 60 days after department stores start selling them.
"Our customer is very fashion-savvy and smart, and really wants better merchandise," Shulman said. "They just don't want to buy for the sake of the price. They really want of-the-moment fashion. That's a major difference from the way it was done in the past," when more of the goods were leftovers or "pack-aways" that could be stored in a warehouse, as required by vendors, for a year before being placed on a selling floor.
"This is the only off-pricer where the name recognition is enormous and synonymous with off-price designer goods, even more than Loehmann's," observed Isaac Lagnado, president of Tactical Retail Solutions, a market research and consulting company. "Everybody knows the Filene's Basement legend of disrobing in the aisle. It's the stuff of urban legend. There's a great possibility for growth, considering the Basement's relatively small volume."
Filene's Basement operates 27 units that generated $430 million in sales last year, but with Retail Ventures pushing expansion, volume is projected at more than $600 million by the end of 2007. Store openings are set for Springfield, Pa., on Sept. 21; Warrensville Heights, Ohio, on Oct. 26, and Levittown, N.Y., on Nov. 9. Another four or five are being planned for 2007. On Aug. 31, a store opened in Hunt Valley, Md. Before that, the last store opened was in March 2005 in Rockville, Md.
However, Lagnado pointed out that "as the chain gets bigger, the availability of recognizable merchandise becomes a bigger challenge. The larger it gets, the bigger the monster you have to feed." The growth of TJX and Marshalls, divisions of the $16 billion TJX Cos., has generated specialty production just for them, but it's not of a highly exclusive nature, Lagnado added. "Nautica, Jones, Liz essentially manufacture whole rungs of merchandise just for that channel."
TJX, however, is moving up the price spectrum, posing another potential challenge to Filene's Basement. According to Mark Montagna, vice president, specialty retail, at C.L. King & Associates, TJX is developing a better sportswear department that will increase the average ticket price at the chain. Initially, it will be tested in 25 stores, and, if all goes well, could be rolled out to a few hundred, but this year the impact won't be very material.
"Filene's Basement, along with Saks Off-5th and Last Call [Neiman's clearance outlet], is viewed as a class apart," Lagnado said. "It's less embarrassing to have your stuff sell there," as opposed to other off-price outlets. "TJX needs huge orders to push through the pipeline. That runs counter to real exclusive brands. Off-5th and Basement typically locate in more upscale centers or downtowns. TJX is much more populist."
There's another concern that comes with growth. The Back Bay store could cannibalize sales from the flagship. "In the beginning, there is always that chance," Shulman acknowledged. "But there really shouldn't be too much cannibalization because it's a very different customer that shops Back Bay."
The same issue arose when the Union Square store opened and was viewed as possibly siphoning sales from the unit just a few blocks uptown in Chelsea. "The first year, there was cannibalization. Now, Chelsea is exceeding the numbers it posted prior to the opening of Union Square," Shulman said. "It took a year for that to happen, and the store in Union Square is doing great." Filene's Basement operates a third Manhattan store, at Broadway and 79th Street.
At the Downtown Crossing flagship, sales slipped a bit after the Filene's store located right above the Basement closed. Filene's was a unit of Federated Department Stores, which sold the building to Vornado Realty. Vornado plans to renovate the property and add some other retailers. The Filene's Basement flagship will continue to operate and get a facelift, though the ambience will be predominately unchanged from bargain basement, Shulman said.
In Boston, the Filene's closing raised speculation about the Basement's future. "It required a lot of marketing and p.r. work to tell people we are here to stay,'' Shulman said. "We are not leaving."
(of course, that was 5 years ago)..
Will report back after the special member preview (from 11/8 to 11/11). 
