For Designer Style, It's All Outlet - Value Retail News

iOJ iNTErViEw
retail icon Marvin traub
speaks on outlet retailing
Now working with
Value Retail, the venerable
retailer-turned-advisor
gives his views on how
the outlet sector can
thrive and flourish.
By linda Humphers
Editor in Chief
If there is one person around the
globe who understands how to attract
upscale shoppers, it’s Marvin
Traub, the legendary former president
of Bloomingdale’s. During his 41 years
with the chain – including 22 years as
its president – Traub made clear his
conviction that retailing should be fun,
energizing and compelling, in short,
entertaining.
He was one of the first Americans
to begin importing European furniture
and fashion to the U.S., beginning
in the 1950s. For his involvement in
the French economy he was awarded
the Order of Merit and the Legion
d’Honneur. The latter award also
recognized his service in the U.S. Army
in World War II; he was wounded at
Metz when he was 19 and subsequently
spent 15 months in the hospital. He
has also received the Commendatore de
la Republic for helping to build Italy’s
economy.
In 1992, shortly after he left Bloomingdale’s,
he founded Marvin Traub
Associates, a consulting firm with
expertise in global retailing, marketing
and consumer goods. MT’s lengthy list
of luminary clients includes Banana Republic,
Coach, Elie Tahari, Gap, Guess,
Harvey Nichols, Missoni, Nautica,
Ralph Lauren, Selfridges, Stuart Weitzman,
Tommy Hilfiger and Tumi.
Traub also served on the board of the
12 InternAtIOnAl Outlet JOurnAl Fall 2011
Marvin Traub
former American outlet-center developer
Prime Retail for 10 years, and he
recently joined forces with Value Retail,
which operates nine designer outlet villages
throughout Europe.
Now 86, he is the author of two books,
“Like No Other Store” and “Like No
Other Career,” a chronicle of his second
career as a consultant and his account of
the future trends in retailing. In August,
he spoke with IOJ about outlet retailing.
Here’s what he had to say.
n n n
IOJ: You have a reputation as a
master merchandiser, the sage of
bricks and mortar, the man who
made Bloomingdales into a unique
retail environment. But earlier this
year your company invested in Ixtens,
which is a technology company
that provides services to online
retailers. Clearly you see a place
for all inventory channels. Can you
talk about the meshing of inventory
channels and where outlets fit?
MT: In my book I talk about retailing
requiring a multi-strategy approach.
Most of the successful retailers – Saks,
Neiman Marcus, Nordstrom – have
a combination of bricks and mortar,
outlet, internet and catalog distribution
channels. It’s quite evident and research
shows that people who shop across
channels spend more money than those
who don’t. So all of these channels help
create a better customer.
n n n
IOJ: Do you think the outlet channel
is essential to a brand’s growth?
If so, at what point should the brand
expand into this channel?
MT: Well-run outlet chains serve
a valuable function, not only as part
of the brands’ growth, but also to
dispose of excess inventory. Brands
should expand into outlets as soon as
they have a significant presence in a
market, whether it’s the U.S., Europe
or Asia.
With so many brands moving to Asia,
there is going to be a need for more
outlets there, and we do know that
Chinese consumers enjoy outlet shopping.
I believe that outlets are essential
as long as their outlets are authentic.
Unauthentic goods not only weaken
the store, they weaken the center and
ultimately they weaken the brand. By
that I mean that the brand can produce
for the outlet stores – that can certainly
be part of the strategy – but the quality
and styling has to be in direct relation to
the full-price products.
Value Retail understands this point
and requires that all the goods sold
in their centers be authentic. When
shoppers from Shanghai are routinely
spending €5,000 to €10,000 per visit
at Bicester Village, it’s because they
know they’re getting authentic merchandise.
n n n
IOJ: Your list of the most compelling
outlet tenants seems primarily
high-end. Do you see upscale
shoppers as the main driver of outlet
retailing?
MT: Most of the successful outlet
centers have a balance between bridge