Industry innovator expands horizons; founder of Linen's and Things unveils very upscale home furnishings store - Eugene Kalkin; Kalkin and Co - HomeMarket Trends supplement - company profile

Discount Store News, April 23, 1990 by Faye Brookman

Industry Innovator Expands Horizons

Founder of Linens n' Things Unveils Very Upscale Home Furnishings Store

Route 17 in Paramus, N.J., is a home furnishings retailing mecca. Chains such as Bed, Bath & Beyond and Fortunoff dot this bustling highway. Quietly, one of home fashion's most innovative retailers and founder of one of the mass market's most successful off-price domestics chains, has unveiled a new store along this strip. It is a concept so intriguing that news of the store won't be silent for long. Moreover, it's a concept so unique it is virtually impossible to duplicate.

And, that's just what Eugene Kalkin, originator of the store called Kalkin and Co., wants. Best known as the founder of Linens n' Things, Kalkin saw his off-price linen concept knocked off across the nation. He succeeded in building Linens n' Things to 56 stores with sales of $80 million before selling it in 1982 to Melville Corp.

But like any good retailer, Kalkin yearned for the excitement of retailing. In December 1989, along with his wife Joan, he unwrapped a new 15,000-square-foot store in a small center anchored by a Lord & Taylor. The new store is as different from Linens n' Things as anchovies are to Beluga caviar.

Stocked With Unusual Items

Instead of Springmaid, there's imported handmade linens from Italy. The store is stocked with many one-of-a-kind items such as a silver coffee service once used by a prime minister of Ireland. To Kalkin, the store is not a home furnishings outlet, rather a "home dressing" source.

Upon entry from the mall, shoppers encounter book selections ranging from Laura Ashley decorating to fine art collections. The octagon-shaped area leads into the main selling floor set off with a breathtaking vaulted ceiling mural painted by Marc Vinsun. Surrounding the main area are mock bed set ups. But these aren't everyday beds. One carries a price tag of $4,500. Nearby is a gold bird cage, a European heirloom priced at $18,000.

The store also sells crystal, dinnerware, table linens and glassware. Some of the brand names include Puiforcat silver and porcelain, Palais Royal Sheetings, Cristofle tableware and Stuart crystal. Everything is merchandised just the way it might appear in a home. Service help is always nearby, but never intrusive. Beyond the center floor is an entire alcove devoted to sparkling bathroom fixtures from Kohler as well as imports. It is one of the most extensive collections of bathroom accessories in any one retail outlet, observed one source.

Undeniably, this store is not for everyone. In fact, Diane Meier of Meier Advertising, the advertising agency for Kalkin and Co., said the store is designed for the upper 3 percent to 5 percent in the country who fall into the proper income level and desire unique merchandise. The store draws not only from New Jersey, but also from New York (only a 25 to 30 minute drive), Connecticut and Westchester.

It's situated in one of the highest income markets in the entire United States and nearby to the greatest accumulation of $500,000 homes. The mall itself, however, is often quiet, especially since the departure of B. Altman, another anchor. Although impossible to duplicate, some sources think Kalkin will take the concept to other areas of the country. "I could see him opening as many as 10 in spots like Southern California or Washington," said one observer.

The quest to uncover the exotic merchandise needed to make the store tick is charged to Peter Behnke and Richard DiGiacomo. Behnke is executive director and buyer. A former director and buyer for Gump's San Francisco, Behnke expanded the table linen department during his five years at the operation. His resume includes more than 20 years of retail experience at stores ranging from Neiman-Marcus to Carson Pirie Scott. He also spend four years at another unique operation, Eschbach's in Laguna Beach, Calif.

DiGiacomo is the bath shop and decorative hardware buyer. He worked with Kalkin at Linens n' Things. Prior to teaming up again with his former boss, DiGiacomo was a partner in a firm that imported decorative and builders' hardware.

Since the visual feel of the store is so important, Kalkin sought an expert in visual design. He found Erwin Winkler, vice president. Winkler had been senior design associate at Skidmore Owings and Merrill, as well as director of visual merchandising at J.P. Stevens.

Searching For The Unique

The genesis of the store was the thought that the upscale market is searching for the unique--the items that won't be found in mass outlets or in friends' homes. Although retailing is generally in the doldrums, those operators who are still faring well tend to be at the very top or bottom. According to Meier, "Its unique position, statement and concept face a lackluster retail environment with style and courage."

The first four months, the store has relied mostly on word-of-mouth advertising. The weekend of April 1, however, four-color advertising spreads broke in The New York Times Sunday Magazine. Created by Meier Advertising, the four ads are enchanting photos capturing the merchandise carried in the store in unconventional settings. A carpet flies through a tea party, a bed is set for dinner and fish plates (with napkins as tails) swim across the advertisement.