Perry Ellis Outlets Get Restyled Store Design
Company aims to entice bargain hunters with fresh look
Company aims to entice bargain hunters with fresh look
By Jaclyn Giovis
October 11, 2006
October 11, 2006
Perry Ellis International today plans to unveil a fresh outlet store design -- and
reinvigorated product mix -- that company officials hope will elevate the company's
hallmark brand among bargain hunters.
The apparel company is expected to open a new company store at the Dolphin Mall in
Miami that will serve as the model for revamping many of its 34 existing discount
stores and for opening at least a dozen new stores next year. The Perry Ellis store at
Sawgrass Mills mall in Sunrise is scheduled for a makeover early next year, company
officials said.
"The stores we've opened in the past have not been in sync with the quality of the
brand or the image of the brand," said Perry Ellis International Retail President Joe
Shannon.
The reinvented outlet store offers men's Perry Ellis brand apparel, shoes,
accessories and fragrance at markdown prices that compare with those offered at
department store sales events.
Perry Ellis outlet stores will now carry a broader assortment of seasonal apparel and
accessories, Shannon said. In addition, there is an effort to make sure product
selections and inventories are better managed so customers have an improved
experience when they shop at Perry Ellis outlets, he said.
Miami-based Perry Ellis is a leading designer, distributor and licensor of men's and
women's apparel and accessories. The bulk of the company's sales come from
major department stores and select discount retailers including Wal-Mart and Kohl's.
Like many suppliers, Perry Ellis is looking for ways to diversify its selling channels as
department store sales continue to decline and specialty stores and outlet centers
become more popular with consumers.
"Most consumers wouldn't be caught dead in department stores," said Love Goel,
chairman and CEO of Growth Ventures Group, a global retail investment firm. Goel, a
former chief operating officer for Federated Department Stores, said department
stores have increasingly developed a reputation for being "a grandmother's store."
Between 2001 and 2005, department stores lost 12.5 percent of the apparel market
to specialty boutiques and outlets, the retail expert said. Over 15 years, department
stores have bled 30 percent of their market share.
The trend, coupled with noticeable impacts to their own business, is driving suppliers
such as Perry Ellis and Liz Claiborne to build their own retail channels, something
they wouldn't have considered five or 10 years ago but now are actively pursuing.
Department stores, Goel said, are increasingly powerless and can be sensitive when
vendors create buzz around their boutiques and outlets.
Melissa Goff, spokeswoman for Macy's Florida, said the department store isn't
threatened by the competition. Vendors such as Perry Ellis often develop special
designs or cuts for Macy's that aren't necessarily found at outlets, she said.
Perry Ellis reported a 34 percent decline in earnings during the first quarter of this
year and a $2.45 million loss during the second quarter, citing impacts related to its
department store business.
Meanwhile, the company is pushing forward with plans to aggressively build retail
stores around its Original Penguin brand and is expecting moderate growth in
opening Perry Ellis outlet stores. The Perry Ellis and Perry Ellis America brands
account for more than $1 billion in annual sales, and men's categories have been
performing particularly well across distribution channels.
reinvigorated product mix -- that company officials hope will elevate the company's
hallmark brand among bargain hunters.
The apparel company is expected to open a new company store at the Dolphin Mall in
Miami that will serve as the model for revamping many of its 34 existing discount
stores and for opening at least a dozen new stores next year. The Perry Ellis store at
Sawgrass Mills mall in Sunrise is scheduled for a makeover early next year, company
officials said.
"The stores we've opened in the past have not been in sync with the quality of the
brand or the image of the brand," said Perry Ellis International Retail President Joe
Shannon.
The reinvented outlet store offers men's Perry Ellis brand apparel, shoes,
accessories and fragrance at markdown prices that compare with those offered at
department store sales events.
Perry Ellis outlet stores will now carry a broader assortment of seasonal apparel and
accessories, Shannon said. In addition, there is an effort to make sure product
selections and inventories are better managed so customers have an improved
experience when they shop at Perry Ellis outlets, he said.
Miami-based Perry Ellis is a leading designer, distributor and licensor of men's and
women's apparel and accessories. The bulk of the company's sales come from
major department stores and select discount retailers including Wal-Mart and Kohl's.
Like many suppliers, Perry Ellis is looking for ways to diversify its selling channels as
department store sales continue to decline and specialty stores and outlet centers
become more popular with consumers.
"Most consumers wouldn't be caught dead in department stores," said Love Goel,
chairman and CEO of Growth Ventures Group, a global retail investment firm. Goel, a
former chief operating officer for Federated Department Stores, said department
stores have increasingly developed a reputation for being "a grandmother's store."
Between 2001 and 2005, department stores lost 12.5 percent of the apparel market
to specialty boutiques and outlets, the retail expert said. Over 15 years, department
stores have bled 30 percent of their market share.
The trend, coupled with noticeable impacts to their own business, is driving suppliers
such as Perry Ellis and Liz Claiborne to build their own retail channels, something
they wouldn't have considered five or 10 years ago but now are actively pursuing.
Department stores, Goel said, are increasingly powerless and can be sensitive when
vendors create buzz around their boutiques and outlets.
Melissa Goff, spokeswoman for Macy's Florida, said the department store isn't
threatened by the competition. Vendors such as Perry Ellis often develop special
designs or cuts for Macy's that aren't necessarily found at outlets, she said.
Perry Ellis reported a 34 percent decline in earnings during the first quarter of this
year and a $2.45 million loss during the second quarter, citing impacts related to its
department store business.
Meanwhile, the company is pushing forward with plans to aggressively build retail
stores around its Original Penguin brand and is expecting moderate growth in
opening Perry Ellis outlet stores. The Perry Ellis and Perry Ellis America brands
account for more than $1 billion in annual sales, and men's categories have been
performing particularly well across distribution channels.
