In a testament to the redefinition of bridge, the iconic old-guard bridge brand Ellen Tracy is shedding its suited, oft-theatrical skin in favor of a more modern line for fall.
Under new ownership (Fashionology LLC), new leadership (Mark Mendelson) and new creative direction (Susanne Klevorick), the $100 million brand appears poised to sit on the redesigned bridge floors of today, filled with new-guard lines such as Elie Tahari and Tory Burch.
Mendelson, president and chief executive officer of Fashionology and Ellen Tracy, said the new Ellen Tracy is targeting two consumers, in addition to the brand’s historic customer: the contemporary customer who has outgrown that department, and the designer customer who is trading down in this economy.
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“These women are being completely underserved,” Mendelson said. “Philosophically, I believe this market is so untapped. These customers are walking around everywhere, wondering why no one wants their money.”
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The company has changed three key elements of the brand, namely:
• Key items v. deliveries: “Each delivery [previously] had a color story, and the new delivery killed the old delivery,” said Mendelson. “It was a self-fulfilling prophecy of death.” Instead of each delivery having a dramatically different look, Klevorick said the focus is on key items with a “flow of color, so nothing becomes dead on the floor.” In showing the clothes, Mendelson said he embraces the mixing of deliveries and even the mixing of Ellen Tracy with other designers because “that’s how women dress.”
• The fit: For fall, the brand is introducing 14 pant styles in sizes 0 to 18. It has kept the iconic “Linda” fit and the former fit model but also has added new silhouettes based on a modern fit and a second slightly less curvy fit model. Both models try on every sample to get a better idea of fit (a practice the brand had years ago). “A second model is a great checkpoint,” Klevorick said.
• The price-value relationship: The brand dropped its average prices by 20 to 25 percent, passing on lowered sourcing and overhead costs.
The fall collection, which wholesales from $46 to $396, is full of fine-gauge sweaters, satin tops, gabardine pants, leather jackets, ponti, fur accent pieces and dresses with unique fabrics and feminine detailing. Klevorick said her focus is on versatility — from day to night and season to season — which also helps maximize the volume proposition.
All of these changes have happened in the last year, since Liz Claiborne Inc. sold the bridge business to a consortium of buyers who formed Fashionology Group LLC. Claiborne acquired Ellen Tracy in September 2002 from the company’s founders for about $180 million when the brand was doing about $171 million in sales, and sold it last April to Fashionology for $42.3 million.
Last May, Fashionology, led by Jamie Salter and William Sweedler, hired Mendelson to succeed Ann Bukawyn, who served as president of Ellen Tracy while it operated under the Claiborne organization and then assumed other duties within Claiborne once the brand was sold.
Before the move, Mendelson had spent nine months at Ann Taylor, spearheading a new retail concept targeting “the modern boomer,” which has since been shelved. Prior to Ann Taylor, he spent five years at Jones Apparel Group Inc., preceded by stints at Elie Tahari and Laundry by Shelli Segal.
Almost immediately after joining Ellen Tracy, Mendelson drafted Klevorick as creative director and senior vice president of design to succeed George Sharp, who left in January 2008 to join St. John. Mendelson and Klevorick, formerly senior vice president of design at Ann Taylor, Nine West and Jones New York, have traveled as a team almost since they met nine years ago.
“I’ve been challenged at times for why I didn’t bring in someone from the bridge world,” said Mendelson. “[Founders] Linda [Allard] and Herb [Gallen] dressed a very modern woman. Suzanne brings a customer perspective, and she doesn’t have any baggage from what ‘bridge’ was.”
The new leadership has maintained the sales and design teams virtually intact. But Ellen Tracy has brought on board member David Lipman for marketing, and retained Bonetti/Kozerski to design its new showroom at 1400 Broadway.
Mendelson said the company voluntarily reduced the door count to approximately 250 when he started. “When a brand isn’t where it needs to be, you don’t want to be in all doors,” he said. “Part of why we are making plan is that we cut back to the doors we are doing well in. Because we were ahead of the game in down-trending, it gave us a head start.”
Although fall is the first collection under the new team’s control from start to finish, Klevorick had been able to modify the fall/holiday 2008 collections, and Mendelson reported that sell-throughs on those shipments had already dramatically improved. “After six months, it started to work,” he said of the span between starting in May and November sales. “We had to change people’s ideas.”
As part of Fashionology, the brand has plans to expand through such licensed products as footwear, handbags and jewelry. Increasing international business is also a priority. Mendelson said Ellen Tracy board member Marvin Traub has arranged 10 upcoming international appointments for the brand.
Mendelson declined to project future volume for the approximately $100 million brand, but said, “The potential is limitless. It’s just a question of how many of these women can we get to wear our clothes.”