more info for SF shoppers.
"
Get there early. The first 250 customers at Powell Street will receive a T-shirt and 20 percent off purchases
H&M brings its high fashion, low prices to S.F.
[SIZE=-1]By Blanca Torres and Jessica Yadegaran[/SIZE]
[SIZE=-1]CONTRA COSTA TIMES[/SIZE]
Bay Area fashionistas, your day has come.
H&M, the European retail chain selling trendy clothes at low prices, is opening two stores Saturday in San Francisco's Union Square and a third in Concord this spring. The stores are H&M's first on the West Coast.
Big deal. We already have Zara and Forever 21, right? Wrong. H&M takes cheap chic to a different level.
Hennes & Mauritz, which maintains 1,000 stores worldwide, breeds cultlike shoppers who squeeze in stops there when trotting the globe and line up outside the megaplex stores the morning of a collection launch.
"Fashion is no longer a matter of price," says Jennifer Uglialoro, H&M's U.S. fashion spokeswoman. "Our customers wear their Prada pants with an H&M top."
The Swedish company, founded in 1947, reported sales of more than $8 billion and profit of about $1.5 billion in the one-year period that ended Aug. 31.
It has adopted a model of fast pace and constant improvement, and has spent years refining its operations to efficiently design, produce and stock merchandise quickly.
"What they're doing too brilliantly is that they put together an operations system that really can support this brand idea," said Susan Nelson, executive director of strategy and insight for Landor, a San Francisco-based brand consulting agency. "It's a very egalitarian concept that people deserve good fashion and shouldn't have to pay thousands of dollars for it."
Creating a lasting brand in retail is a tough challenge, Nelson said, because retailers have to find a way to balance their pursuit for top fashion and their ability to serve customers. Another challenge is predicting what consumers are going to want one year in advance.
"We have in-house designers and buyers; the only part of the supply chain we don't own are the factory productions," said Lisa Sandberg, U.S. communications director for H&M. "Those designers and buyers are able to turn around designs in as fast as four to six weeks."
Coming west was a natural progression, said Sandberg. The company was eyeing both San Francisco and Los Angeles but chose San Francisco when space became available in the historic "Elevated Shops" building at 150 Powell St.
"It's a fantastic location that really suits our brand, and the neighborhood is exciting," Sandberg said.
The Bay Area is ripe for a retailer such as H&M, Nelson said, because it appeals to consumers in the middle of the economic spectrum.
"If I were other mass market retailers, I would be quite nervous," she said. "There's been a gap between the really high-end and the low-cost retailers. ... There's not a lot of selection in the middle."
Many international, especially European, retailers tend to start off in New York City because they see it as a perfect test market in the United States, said Stephen Stephanou, vice president and co-founder of Madison HGCD, a New York-based real estate firm.
"If you can be successful here, you can be successful other places," he said. "It's a great place for people to get their brand out. It gives them a lot of exposure."
H&M's hip factor could spice up Sunvalley mall in Concord. Construction there begins in February, and the store, replacing four spaces on the mall's upper floor, should be open by May.
"It's a great move for us and a real coup to be one of the centers," said Tom McCracken, the mall's general manager. "I certainly think it's going to bring a more fashion-conscious customer here."
While the Sunvalley location and Post Street store in San Francisco will carry women's merchandise, the Powell Street store -- all 35,000 square feet of it -- will carry cosmetics and lingerie in addition to clothing for men, women and teens.
The Bay Area stores make H&M more accessible to thousands of West Coast shoppers, such as Angele Motlagh.
"Before, I looked forward to going there as part of my trips to Paris or New York," said Motlagh, a San Francisco lawyer. "Now I can go on my lunch break."
As will other bargain hunters. Especially now, with British designer Stella McCartney of Gucci and Chloe recreating her romantic styles for the H&M price point.
The line, which launched Nov. 10 and ranges from $70 to $200, sold out at one of seven Manhattan locations in 15 minutes. Expect similar frenzy Saturday in San Francisco, as Southern California shoppers are sure to drive up for the event.
It's easy to see why. Much like Target -- which claims Isaac Mizrahi among its designers-for-less -- H&M's motto is to get it while it's hot, get it for less and get over it when it goes out of style.
The trend has been in effect for about five years and is most evident to those flipping through fashion magazines. Editors are almost required to offer various value tiers when writing up clothes. And H&M is almost always the "cheap" version.
With attitudes about fashion quality and price changing, both retailers and designers are comfortable designing an inexpensive line because they can gain publicity and reach a different market of consumers.
"It's not like developing a line of sheets like Martha Stewart would have done -- it's something that will be in the store for a few weeks," Stephanou said. "It wouldn't really detract from (McCartney's) luxury biz. A lot of it is about the excitement of the experience, which is another part of the phenomenon. And, it brings customers into the store who normally wouldn't come into the store."
Reach Blanca Torres at 925-943-8263 and Jessica Yadegaran at 925-943-8155.
Grand opening
H&M debuts on the West Coast on Saturday with the opening of two stores in San Francisco's Union Square shopping district.
• WHERE: 150 Powell St.
• SIZE: 35,000 square feet
• FEATURES: Apparel and accessories for men, women and teens
• INFORMATION: 415-986-4215
• WHERE: 150 Post St.
• SIZE: 10,000 square feet
• FEATURES: Apparel and accessories for women and teens
• INFORMATION: 415-986-0156
• HOURS FOR BOTH STORES: 10 a.m. to 9 p.m. Monday through Saturday, 11 a.m. to 6 p.m. Sunday.
Shop, don't drop
The first weeks at H&M will be madness. Follow these insider tips to avoid a shopping breakdown:
• Get there early. The first 250 customers at Powell Street will receive a T-shirt and 20 percent off purchases.
• Shop mornings. Lunch breaks, nights and weekends are hectic.
• Know your European size ahead of time so you can grab it. They differ from U.S. sizes; for example, a U.S. women's dress size 12 translates to a European size 38.
• All sizes aren't put on the floor at once, so always ask.
• If you can't find something, check back. New merchandise hits the store daily.
• If all you need is women's apparel, hit the Post store. It's smaller and will be less chaotic.