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From May 2008
By Walter F.
Loeb
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Sponsored by
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| There is a
small store in New York City that has
very big plans. Fame New York is located
at 512 Seventh Avenue, in the heart of
Manhattan’s Garment District. It is only
about 1,000 sq. ft. in size, but it has
great appeal for fashion-conscious young
customers seeking dresses, separates and
handbags. |
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During peak times the store employs live models
to feature fashion. The merchandise is always
vibrant and timely, but I think the most
important factor is that this little store is
always fashion-right. It has generated a solid
following, and the large show windows allow for
the latest fashions to be displayed in an
appealing way so that it attracts the casual
shopper, as well. (According to management, Miss
Universe, Miss USA and Miss Teen USA have
shopped in the store.)
Expanding its reach
Fame New York is owned by Lee Kashani, who
operated several Seventh Avenue apparel
companies (including Le Chaton and New York
Apple) before opening this store six years ago.
He is concentrating on a few contemporary and
European labels, including Casting-Paris,
Rinascimento and Nicole Miller, as well as
handbags by Adrienne Vittadini. Kashani, who
does all the buying, believes in concentrating
on a limited number of suppliers in order to get
faster delivery of new styles.
Kashani has plans to expand the reach of Fame
New York through web sales on a site called
Fashion Newsstand and is considering a second
store on Manhattan’s East Side. It is exciting
to see a new store develop in such an exciting
way.
It goes without saying, of course, that it is
much easier to run a single store, since the
controls to keep the store’s assortment clean
and up to date are all visible to the owner and
his associates. Inventory controls are much more
difficult to manage in multiple locations:
management must have trusted employees in place
in every store and must have reports about the
rate of sale and the inventory, both in unit and
dollar amounts.
It is not yet time to install sophisticated and
expensive data controls – the return doesn’t
justify it — but the owner must know what is
(and isn’t) selling every day in each location.
Return rate
I am convinced that the styles of Fame New York
will appeal to web shoppers. The merchandise is
attractively priced and timely; it is colorful
and smart. The site should do well, but there
will be the return rate of 30 to 40 percent that
management will have to cope with.
Most merchandise should be resalable if it comes
back in a timely fashion; other returns might
have to be sold at a discount. The challenge is
to resell the merchandise so that it does not
become a liability.
Kashani is an entrepreneur who is making friends
every day by offering fashion and value to a
fashion-conscious customer. I wish him well. |
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