Retailers dangle celebrity names to draw young shoppers

Chicago TribuneMay 3, 2013 

BIZ RETAIL-CELEBRITIES-BIZPLUS 1 TB

Macy’s is banking on brands such as Taylor Swift’s Keds to win over a coveted generation of those born after 1980 who spend about $430 billion annually on discretionary items, according to one study.

ABEL URIBE — CHICAGO TRIBUNE/MCT

Sixteen-year-old Gabriel Aguilar, of Chicago, an avid shopper, prefers to patronize specialty shops such as Urban Outfitters or Forever 21 for party and hang-out-with-friends apparel.

Sears? Not a chance.

“Every time I think of Sears, I think of a washing machine,” he said. “They barely have clothing in their commercials, and I never see their commercials on the things that we watch.”

But when the high school sophomore learned that Sears soon would be offering skinny jeans branded with pop star Adam Levine’s name, his interest was sufficiently piqued – enough that he said he’ll be checking out the goods.

Sears and a number of other department stores are hoping they can convince Aguilar and other young shoppers that they’re worthy of a second look, and, ideally, their lifelong loyalty. They’re beefing up mobile shopping tools and bringing in more affordable, fashionable merchandise as well as signing up celebrities to sell their wares.

The goal: winning over a coveted generation of those born after 1980 who spend about $430 billion annually on discretionary items, according to the Boston Consulting Group.

“Right now, all retailers are going after the millennial customer. They have to, because it represents the future of their business,” said Carol Spieckerman, president and CEO of Newmarketbuilders, a retail consultancy.

Late last year, Macy’s rolled out more than 20 brands, including lines inspired by Madonna and her teenage daughter, Lourdes Leon, known as Lola, aimed at the younger set, which the company acknowledged cares about “trends, style and value.”

It also has created private (Macy’s-only) labels such as urban-inspired denim line G Star Raw and the skateboarder-driven Comune to draw in millennials with varied interests. And it has the likes of Taylor Swift, P. Diddy and Justin Bieber selling its merchandise.

In February, Nordstrom revamped its trend-driven Savvy women’s department, bringing in new merchandise and lowering the average price point to $50 from about $100.

“We thought we had the opportunity to be more relevant to that truly trend-driven customer who wanted us to be more accessible in price, and that was a hurdle for us before in that department,” said Nordstrom spokesman Colin Johnson.

This month, Sears launched a business unit dedicated to signing up celebrities to sell their wares, including trendy dresses and jeans. First on its list: pop stars Nicki Minaj and Levine, who moonlight on the popular TV shows “American Idol” and “The Voice.”

Celebrity branding isn’t new. Designers have long competed to win the affections of Hollywood stars. But the embrace of social media among millennials has opened up new opportunities for retailers to capitalize on celebrities’ star wattage.

“Any retailer that taps into that celebrity taps into their transmedia presence – online, radio, TV, movies, Twitter, everywhere,” Spieckerman said.

Retail experts say department stores have a ways to go. They have never “owned” the millennial customer, who has typically been the primary focus of specialty shops such as H&M and Old Navy with their cheap-chic merchandise. A recent report by WSL Strategic Retail, a New York-based consultancy, found that 79 percent of millennials shop at specialty stores and 52 percent shop at department stores.

Retailers also have to do more to keep millennials coming back, said Wendy Liebmann, CEO of WSL Strategic Retail. The clothing and the in-store “experience” have to be right, she added.

“There are just too many places for younger consumers to shop,” Liebmann said.

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