Sexy Still Sells

It’s the granddaddy of intimate apparel in this country, having lifted the spirits of post-World War II America by inventing the push-up bra, pioneering black lingerie and introducing the thong to U.S. consumers.

An icon of sensuality for generations of shoppers, Frederick’s of Hollywood is poised for significant growth following its merger with Movie Star, a manufacturer of branded and private label intimate apparel for mass merchandisers, department, specialty and discount stores. The merger will enable the company to open a minimum of 50 new locations over the next 36 months as well as a Frederick’s office in Asia to increase assortment and facilitate speed to market. Also on the agenda is the development of multiple store concepts that tailor merchandise to individual markets.

STORES [magazine] recently spoke with Frederick’s president and CEO Linda LoRe about current market conditions and the chain’s strategies for growth.

What do you see as the major challenges facing the lingerie business these days?
LoRe: Many apparel retailers have jumped onto the lingerie bandwagon as a way to offer their customers a more complete lifestyle extension of the brand. The challenge in this is that these retailers don’t often delve deep enough into their customers’ lingerie drawer, so to speak.

Lingerie can be a delicate matter – does your customer want sexy or safe? Foundations or fashion? We have spent a long time getting to know our customer and what she wants to put in her top drawer. From that knowledge, we’re able to offer the Frederick’s experience – sexy, quality lingerie at an alluring price point.

Has the economy had an impact?
LoRe: The lingerie segment certainly feels the impact of the current economic climate, but consumers still consider lingerie an affordable luxury. They might not be buying as many high-ticket items, but they’re able to treat themselves to indulgences at a lower price point.

Frederick’s is responding by offering discounts on multiple items – two-for-$24 bras, four-for-$24 panties – promotions that give the customer the same Frederick’s experience at a price that allows her to get more for her money. We’re also giving her the ability to combine functionality with fashion. If she wants to get into a trend without making a significant purchase on a shirt or dress, she can indulge in trend-oriented lingerie, such as a bra or boyshorts. We’re doing extremely well with our fashion items.

What’s the outlook for the segment generally?
LoRe: The industry as a whole is at an important juncture. Many retailers continue to extend their brands with basic lingerie offerings. But the real winners will succeed by tapping into the needs of the customer through innovation and experiential shopping. It’s not enough anymore to build a bra with your label in it: You have to sell a better bra at an even better price, in a setting that makes customers feel special.

[Stores Magazine]