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TheBuzz Erika Engle |
Coach brings bags,
boots and baubles
to its new storeCoach Inc. is expanding its Hawaii presence with a 7,300 square-foot flagship store in Waikiki that will offer a resort line no other store on earth will carry.
The upscale, New York-based leather goods and accessory retailer will open to the public after a private blessing this morning at 2100 Kalakaua Ave.
It is the latest upscale retail goods brand to expand its presence in Hawaii, to capitalize largely on the Japanese visitor market, but also to anyone else with a willing wallet.
DENNIS ODA / DODA@STARBULLETIN.COM
Lew Frankfort, chief executive of Coach, is reflected in the mirror of the chain's new store at 2100 Kalakaua Ave. in Waikiki. The store opens today.
LVMH Moet Hennessy Louis Vuitton has six Louis Vuitton retail shops in Hawaii, including one at 2200 Kalakaua.
Hermes of Paris Inc., another French luxury retailer, opened an Ala Moana store and announced plans to expand its Royal Hawaiian Shopping Center store earlier this year.
The year-old Honu Group development at 2100 Kalakaua Ave. is home to other high-end retailers such as Tiffany & Co.
"We're the only American brand that competes with the European luxury brand," said Lew Frankfort, Coach chairman and chief executive officer. Its leather and materials come from the same tanneries and mills as its competitors', and its products are manufactured in 16 countries around the world, he said.
The company had been contemplating establishment of a flagship Hawaii store for two years.
"We felt in Hawaii, as part of the U.S., we should have a strong flagship presence," Frankfort said.
They learned of the Honu development "and we wanted to be in a location with immediate adjacencies to the European luxury (retailers).
"We position ourselves as acceptable luxury. Our price points are half of our European competition and our products represent exceptional value and are increasingly sought after by consumers worldwide."
He backed up his statement with statistics. Coach's Japan business grew 60 percent last year to encompass 15 percent of the handbags and accessories market. "We're looking to grow our share to 25 percent over the next three years."
There are two flagship stores in Japan, in the Ginza and Shibuya areas. "We contemplate opening an ad
DENNIS ODA / DODA@STARBULLETIN.COM
These handbags are part of the SOHO Mini Signature line in ivory and blue that are exclusive to the new Coach flagship store in Waikiki.
"As we open additional locations, we're able to build more market share, as opposed to (encountering) reductions in existing sales, Frankfort added."
Hence, he is confident the new flagship store and its exclusive resort line will not cannibalize sales at its other locations, in Ala Moana Center, the Outrigger Main and the Shops at Wailea, or for other retailers that carry the brand.
Coach will advertise locally as well as in tourist guides for the mainland and Japanese markets.
LVMH has previously reported that its Hawaii locations provide some of its best return per square foot in the world, though Hawaii sales tend to struggle when Japanese visitor numbers decline.
The adage "what goes up must come down," has to kick in at some point, but luxury retailers such as LVMH are still reporting increased performance.
Coach went public in October of 2000 with its stock selling at $4 a share. "Today, it's over $37 and our sales have nearly doubled. In the last three years profits have increased tenfold," Frankfort said.
Such talk from upscale retailers doing business in Waikiki is a far cry from the 1980s when the gateway to the state's foremost tourist Mecca was littered with shops advertising "po-ru-no" in Japanese characters. Those were also the last days for a notorious strip bar at the corner of Niu Street and Kalakaua Avenue, once home to what former owner Gary Henig called, the "dirty, nasty Tiki Torch where naked ladies used to dance right in front of your face."
Some times the good old days, just aren't.
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Erika Engle is a reporter with the Star-Bulletin. Call 529-4302, fax 529-4750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210, Honolulu, HI 96813. She can also be reached at: eengle@starbulletin.com
