NEW YORK — After 30 years in the fashion jewelry business, Carolee is gearing up for change.
The Greenwich, Conn.-based firm known for fake pearl jewelry is in the process of closing all but three of its 24 retail and outlet stores to focus on wholesale business, has partnered with mass merchant Target for a line of fashion jewelry, is expanding its portfolio via licensing and is aiming to grow international distribution in Europe and South America.
“Carolee started in the wholesale arena,” said Joel Fivis, executive vice president of Carolee, of the closing of the firm’s stores, a process that began in 2004.
The company closed 10 stores, including units in Greenwich, Raleigh, N.C., and Scottsdale, Ariz., last month and has closed 11 others, including doors in Tampa, Fla., Colorado Springs, Colo., and King of Prussia, Pa.
“Our wholesale business relied on us to bring fashion-forward and timely products to market,” Fivis said. “We felt it appropriate to pare back [our retail stores] to only those that were performing.”
A store in Puerto Rico and outlets in Aurora, Ill., and San Marco, Tex., remain open.
“We’re not getting out of the retail business,” he said. “One of the bright sources of our business is carolee.com, which has grown 50 to 60 percent each season [since its inception in 2003].”
Fivis added that the company’s second-quarter sales showed double-digit increases. Carolee, which Retail Brand Alliance acquired in 2001, also produces Adrienne Vittadini, Lauren and Brooks Bros. jewelry, whose women’s collection launched in 2005. An industry source estimated Carolee’s volume to be about $70 million.
“It’s interesting, because they’re doing almost opposite of what a lot of other brands are doing, trimming down wholesale and opening their own stores so they can represent the brand the way they want to,” said Mitch Kates, associate director of strategic services for Kurt Salmon Associates. “They want to concentrate on wholesale and being the best vendor. I applaud people who focus their business one way.”
Kates said the fashion jewelry sector is a tough one right now, but has promise.
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“It’s a difficult business, but can be rewarding if you do it right,” he said. “It gets tough if you have the wrong mix.”
Carolee has already partnered with Italian eyewear maker Luxottica on an eyewear line, which retails from $149.95 to $189.95 and hit stores such as Pearl Vision and LensCrafters in April. Additional brand extensions like handbags and other accessories are under consideration. The company now has a small offering of handbags, mostly beaded evening styles.
The line that’s being done exclusively for Target is called Margaux by Carolee and is slated to hit shelves later this month. The collection retails from $7.99 to $59.99 and includes fashion-savvy styles such as a wide, multistrand chain and pearl bracelet, and hoop earrings with colored pearl details, in addition to more classic evening styles like linear crystal stiletto earrings.
This year, the company has also acquired the license to Zinc Lincs, a contemporary jewelry line. Aimed at women ages 16 to 25, the line’s crystal-drenched earrings and modern cuff bracelets sell in stores such as Nordstrom and Dillard’s, retailing for $7.99 to $24. Fivis said the firm is looking to grow by acquiring other brand licenses.
Fivis said he also looks to grow the brand’s wholesale distribution in existing and additional international markets, including Mexico, Taiwan, Russia, various European cities and locations in South America.
In keeping with its wholesale focused strategy, the firm will reopen its expanded and renovated 3,500-square-foot showroom at 385 Fifth Avenue today for holiday and resort market week.
Karen O’Brien, vice president of marketing for the company, said advertising for the flagship line will be increased, as the company has advertised its bridal line for many years in publications such as In Style, Martha Stewart Weddings, New York Weddings and Brides.
“[The bridal campaign] has helped Carolee reach consumers in their 20s,” she said.
Starting next year, the company will increase ad pages in more fashion books. The media buy is not yet confirmed, but the firm has advertised on a lesser level with books such as Lucky and Shop Etc.