Loehmann's L.A. flagship sets new, expanded depts - Los Angeles, California discount clothing operation

Discount Store News, July 20, 1992 by Jill Lettich

NEW YORK - Loehmann's the off-price apparel chain, will open a new prototype store in Los Angeles in October. The unit is being touted as Loehmann's flagship L.A. store and will showcase a number of new merchandise categories for the 83-store chain.

The new 25,000-sq.-ft. Loehmann's will include an expanded jewelry and accessory area, the introduction of fragrances and the addition of sheer hosiery to the merchandise mix. The store will be housed in the new Burton Place Retail Center, developed by Caruso Affiliated Holdings, Los Angeles.

According to Doug Meyer, vice president, marketing Loehmann's, the merchandise changes will be accompanied by a new store layout and updated displays.

"Everything will be much more zone-out,' said Meyer. "There will be more definite category departments that will make it much more user-friendly."

An enclosed counter to house the expanded jewelry merchandise will also be included. "It will have much more of a specialty store feel," explained Meyer.

The Los Angeles site will feature a larger Back Room. The Back Room is literally a separate room that features more exclusive designer merchandise.

Loehmann's last store prototype was introduced in 1989 with fixtures that updated the long pipe racks that defined the store. Since then, Loehmann's has been experimenting with new merchandise categories such as lingerie and socks, but this is its most aggressive move yet beyond its primary apparel categories.

According to Meyer, the expanded accessories department and fragrances will be rolled out to all the stores in time for the Christmas selling season.

The other changes will be rolled out more gradually. Meyer said the firm plans to renovate between five and 10 stores a year in the coming years. It will open about five new stores in the next year, he said.

Most of the stores will be in states where Loehmann's already has units, but it new markets within those states. One store will open next month in Syracuse, N.Y.

Though some of these plans have been in the works for a while, Meyer admits that the appointment of Robert Friedman to president of Loehmann's earlier this year "has brought some fresh air into the company."

Friedman is a former Macy's merchandising executive. His department store background fueled rumors early on that he might change the direction of the chain away from couture clothing. Meyer disputes this.

"We understand our niche in the off-price market. We start off where others stop. Our niche is better, bridge designer merchandise. We're not walking away from that," Meyer said.

Instead, Loehmann's will begin a new marketing campaign in the fall to better communicate its stance to existing and new customer. According to Meyer, the perception of Loehmann's as "your mother's store" is no longer accurate.

"We have to market ourselves better and we will do that with a new advertising campaign in September," he said.

These actions are necessary as the company is bombarded with new off-price competition. The growth of Marshalls in the past few years, and the expansion of T.J. Maxx into both those chain's Northeast stronghold has been a rude awakening for the company.

The chain experienced a decrease in sales in 1991, with total sales down 1.8% to $389 million. It will be a challenge for it to make itself heard in a crowded off-price industry.

The crowding is evident in the real estate market, where bigger spaces are in demand. Rick Caruso, president of Caruso Affiliated Holdings, said demand is specially tight in the Los Angeles area. "The space off-price are in now is usually too small. They all want a big space in a dense area, but still get shell-shocked about the bigger rents for those kind of spaces," he said.

Loehmann's will share its space in the Burton Place center with two other yet-to-be-named tenants. According to Caruso, Loehmann's signed onto the site two years ago and the location was built around its specifications.