Vera, Vera off the Mall: Will You Help Kohl's This Fall?

Implications: The upcoming introduction of Simply Vera is a major initiative by Kohl's to update and energize a slightly tired sportswear vendor/  brand structure. This is a big development in a month chock full of major launches among key retail players: in addition to Vera Wang at Kohl's, we have the entry of Nordstrom into the Boston market; Martha Stewart hitting the selling floor at Macy's and Macy's aggressive new celebrity marketing campaign; Penney's is continuing to roll out Sephora and finalize details for the Spring 2008 launch of American Living. Powerful!   Will Simply Vera duplicate Kohl's success with Chaps or will it miss the mark as one more failed effort, by a major retailer,  to capture the highly sought after younger, more upscale customer?

Analysis: Before fully appreciating the Simply Vera challenge, we must be mindful of the nature of Kohl's feminine sportswear business, which three years ago was ringing up out-the-door average unit retails just a few pennies over $10. That represents lots of units. at 30-40-60% off,  from Sonoma, Croft & Barrows,  Notations, Requirements, Cathy Daniel, Villager, Sag Harbor, and others.

Recently retails and taste levels have increased modestly at Kohl's  through labels such as Chaps, daisy fuentes, Nine & Co, and Elle. Career jackets are on the selling floors ticketed at regular retails of $59.00-99.50.
Vera dresses, coats, and jackets above $100 are certainly top of the line for Kohl's. However, this is nothing like the frequent comparisons with Halston's sad deal with Penney's decades ago when T-stands of $100+ Halston dresses were surrounded by a department filled with $40 product--a disaster.

Kohl's is historically minded, consistent and  thoughtful, with a clear understanding of the sources of its competitive advantages and a dedication to continue  to give it's customers what they want. If Vera Wang is not tops on the list of customer wants, you can bet that Kohl's will not throw out the baby with the bath water, as numerous retailers have done in wooing the younger customer. Kohl's will take its time doing  Vera brand building and carefully roll out the line. I'm eager to see the merchandise and see how it's romanced in the stores. I'm especially eager to see how Kohl's will sell $70 Vera dress shoes in a self service shoe department--but I'm betting they've thought that out.