Mizrahi magnet may just have pull

DSN Retailing Today,  April 5, 2004  by Emily Scardino

• E-mail
• Print
• Link

When it comes to maintaining Target's reputation for cheap chic, keeping up appearances in apparel is paramount. And the way that this retailer has managed to stay at the top of its game can be summed up in two words: Isaac Mizrahi. With the success of the most extensive designer apparel launch in its history, Target has successfully raised the bar in terms of its assortment's fashion credibility.

Not only has it set itself apart from Wal-Mart and Kmart with this exclusive designer label, it has also differentiated its merchandising offering from mid-tier competitors, including Kohl's and Sears. Only JCPenney, with its Bisou Bisou line by Michelle Bohbot, carries a parallel offering in terms of designer cachet, which remains Target's hallmark.

That Mizrahi represents a sea change may seem surprising, considering me perpetual influx of designer names at Target. However, while apparel designers, including Todd Oldham and Cynthia Rowley, have produced limited amounts of sportswear or sleepwear in partnership with Target, they have put the brunt of their efforts into alternative merchandise categories such as home goods. The depth and breadth of Mizrahi's line reflects its importance to Target management. As the company's Web site points out, Mizrahi is designed to outfit women "from head to toe," offering a comprehensive line of apparel, outerwear, handbags and footwear, which continues to expand this year. The temporary Mizrahi store Target opened in Manhattan's Rockefeller Center last fall was a success from both a retail and a marketing perspective, giving the line a high-profile launch during Fashion Week. And after the line's inception last fall, Target president Gregg Steinhafel reported that he was "extremely pleased" with its performance.

Another indicator that the line remains a keystone in Target's strategy is its continued presence for more than one season. Unlike youth-oriented Mossimo, which was initially heavily emphasized in terms of assortments and marketing hut faded away to a limited assortment of denim and swimwear, Mizrahi's in-store presence is as strong as ever.

The significance of the Mizrahi brand is also evident in Target's national advertising efforts. TV commercials once again make this apparel line the focal point, a destination brand. America's core shoppers--women--are the featured emphasis.

While Mizrahi is certainly the most important brand initiative and strategy in overall apparel assortments, it is not the only new name. Across women's, men's and children's wear, the latest introduction is a national brand--Levi's. Atypically, it was Wal-Mart that first jumped on board with the Levi Strauss Signature brand, not Target. However, Target clearly thought that it was a good idea, and after approximately six months of retailing at Wal-Mart, the brand is now rolling out in Target stores across the country, already in place in men's departments since holiday 2003.

Judging from in-store presentations, it's clear that Target wants to take ownership of the Levi Strauss Signature brand in men's. It is prominently merchandised on the edge of the department. According to the president of Levi Strauss Signature, Scott LaPorta, Target is using the same fixturing and signage as Wal-Mart, yet because of its positioning, it pops out. With heavy crossover in terms of product and under-$25 price points, Target's forte--presentation--could be a critical advantage. Other national brands, like Dickies, which has gained a strong following as a fashion brand aside from its core workwear offering, are highly visible in the department as well.

Target has also maintained the BLU by the makers of Lee brand in its apparel departments, which was its original answer to Levi Strauss Signature, a mass-market version of a mid-tier department store brand. Now, Target has two such brands, remaining the exclusive purveyor of the Lee line--and one-upping Wal-Mart.

Not much has changed in stores since a year ago in other departments. In children's wear, licensed merchandise continues to maintain a strong presence, in both merchandise and signage. Entertainment properties including Barbie and Hello Kitty are important in girls, while sports- and anime-licensed merchandise remain key in boys.

What new national and designer brands lie in Target's future, if any, will be revealed next fall. Still, it is a positive sign that the company has decided to stay the course with Mizrahi and develop the line. This designer label is essential in keeping Target's apparel offering top drawer.

COPYRIGHT 2004 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2004 Gale Group