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August 22, 2007

Did Kohls go too far with the Vera Wang Assortment?

Analysis of: Vera Wang Set to Dress Up Kohl's | online.wsj.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Mark Sussman, President and Chief Executive OfficerMark Sussman
President and Chief Executive Officer, Pyramid Solutions, Inc.
Implications: I have been a big fan of Kohls (KSS) merchandising strategy of introducing exclusive branded merchandise since its inception. I feel this will further prompt the customer to visit Kohls, a free standing destination store. The initial Vera Wang collections may have gone too far, too fast.

Analysis:  

In reviewing the Vera Wang assortment in the September Vogue 8 page spread the disconnect between Kohls core consumer and the assortment is almost startling. The line is styled in a way that is very sophisticated and is a huge jump from their other assortments. The models used are the antithesis of the customer looking like they are in their late teens to early twenties. Lastly the price points are a vast jump. The $389.99 comforter from the “City Night” home collection has no place in a Kohls store.


If the aim of management was to bring a “buzz” to the store and the brand than they have been successful. If the assortment is on the floor to sell at these prices, sell through at regular price will be  challenging and markdowns will be steep. The hope to bring in a new consumer (like the Stella McCartney assortment at H&M) will be the litmus test. If the new consumer does not shop for this merchandise than selling to the 34-55 size 12 female will be difficult.


First impressions are lasting so it will be hard to transfigure this line to be more accessible quickly. It appears the Kohls merchants responsible for this assortment let Ms. Wang go a bit too far. Time will tell quickly beginning September 9th. If this collection sells through at 15% the first week than I am wrong!


Other Analyses of the Same Source Article:
Taking the bull by its horns..........
December 10, 2007, Author: GLG Expert Contributor
Kohl's playing dress up?
December 6, 2007, Author: GLG Expert Contributor
Simply Vera is Now On the Selling Floor
September 18, 2007, Author: Laurence Hellman, Independent Consultant, Laurence Hellman
Vera, Vera off the Mall: Will You Help Kohl's This Fall?
September 5, 2007, Author: Laurence Hellman, Independent Consultant, Laurence Hellman
Vera Wang's New Line Is The Most Expensive Apparel Brand At Kohl's
August 27, 2007, Author: Martin Brill, Managing Partner, Sweetwater Consulting LLC
Simply Vera - a big risk for the fashion diva
August 24, 2007, Author: Angela Chew, Senior Product Manager, Chadwick's of Boston, Inc.
Simply Vera and Kohl's a Perfect Match!!!!
August 14, 2007, Author: GLG Expert Contributor
Kohl's wins big while Vera Wang risks it all
August 13, 2007, Author: Christopher Ramey, President, Affluent Insights
Very Vera" strengthen's ongoing plans to attract new customers
August 9, 2007, Author: Mark Sussman, President and Chief Executive Officer, Pyramid Solutions, Inc.
Kohls will surely succeed w/ Vera as they did w/ Chaps & Daisy
August 3, 2007, Author: Jason Kra, Owner, Total Sports Resources
Kohl's' Simply Vera launch-the secrets in the styling, not the price.
August 2, 2007, Author: Nicholas White, President, White & Co
Does the Kohl's customer really aspire to look like the Vera Wang shopper?
August 2, 2007, Author: GLG Expert Contributor
Vera Wang's Brand now at Kohls - Vera, have you ever been inside a Kohls?
August 2, 2007, Author: Mike Kelly, Managing Partner, Brand Value Advisors LLC
Danger- Never Try to Out-Hip your customers
August 2, 2007, Author: GLG Expert Contributor
Simply Vera, simply a bargain?
August 1, 2007, Author: Angela Chew, Senior Product Manager, Chadwick's of Boston, Inc.

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