California Apparel News

From health clubs to tanning salons, designers are taking unique avenues to showcase and sell their lines.

These nontraditional retailers are finding that customers are willing to spend money on luxury apparel at more service- oriented establishments. And the growing trend is allowing them to tap into a business that garners nearly $10 million a year, according to Port Washington, N.Y.–based research firm NPD Group. According to NPD, sales of women’s active apparel increased 12.3 percent in 2006 from $8.8 million.

For sportswear designers Elisabetta Rogiani and Sandra McCray, these alternative retail outlets are perfect places to attract the attention of repeat customers. The Sports Club/LA, a health and fitness club, recently opened the doors on its new boutique: The Shop by Pete’s Sportswear. And high-end tanning salon Portofino Beverly Hills recently remodeled its small retail boutique to make room for more apparel.

“Ever since hotel gift shops have successfully moved on from magazines and personal care [items], more smart service providers have realized that their storefronts have a business-making opportunity,” said Tom Julian, trends analyst and senior vice president, strategic director of trends for McCann Erickson. Julian added that designers and brands are becoming more and more receptive to creating unique partnerships with un-exposed retailers.

For Los Angeles–based designer Rogiani, the relationship has proved to be quite fruitful. She has been one of The Sports Club/LA’s top sellers for the past three years, selling her popular active apparel line in its Los Angeles, Orange County and now Beverly Hills boutiques. All three stores are generating $2.1 million in yearly sales for the club, with her darting double bra top, retailing at $75, becoming its bestseller. “This top is the one that pays my rent,” she said.

Rogiani works closely with the club’s merchandising manager, going over what color combinations are working in the store and what aren’t selling. She then designs according to that information. “It’s all about building a relationship,” said Rogiani. “Now they have three stores that are keeping me so busy.We are very good together.”

At the new Beverly Hills location, The Sports Club/ LA took a different approach from its other shops. It hired store designer Leesa Storfer to help plan the limited 500-square-foot space. It has custom-made fixtures, wood hangers and dark paneling. Diverse brand names are displayed throughout the stores, such as the latest in workout and activewear, as well as contemporary apparel brands including Hale Bob dresses, James Perse T-shirts and Linea Pelle belts.

“The formula is putting in basic things that people need from the club first, and then going beyond that and carrying fashionable types of things like shoes or clothing,” explained Pete Abraham, president of The Shop by Pete’s at The Sports Club/LA.

But not every item sells. Last year, the club tried selling cowboy boots, but its customers failed to bite. With a clientele age range of 27–40, the affluent customers are more than willing to shell out $85 for a Rogiani double- roll pant but think twice on purchasing a leather handbag.

“Anything over $200, no matter how cute it is or popular, doesn’t work for us,” said The Sports Club/LA Merchandise Manager Stephanie Hernandez. “They [customers] don’t come to the gym to pick up a $400 purse. It freaks them out. They may love it, and they may own one, but they don’t want to buy it from us.”

Active sportswear designer Sandra McCray understands the importance of finding the venue that knows its customer. For the past nine years, the Los Angeles designer has focused on retailing her line primarily in the resort and spa industry, including The Ritz-Carlton at Laguna Niguel, Calif., and Bacara Resort and Spa in Santa Barbara, Calif.

For McCray, the biggest challenge has been to convince merchandisers that they can’t just throw the clothes in an area and expect to sell. McCray also stressed that these venues should be careful not to overwhelm the customer with items that don’t work aesthetically with the store. For example, items that are too “street,” such as sequined shirts, or too many denim lines would not work, said McCray. “You can confuse the customer. It has to make sense.”

Portofino Beverly Hills is taking a slightly different approach. Six months ago, the tanning salon converted a 6-by-11-foot space into a retail boutique. With the help of such celebrity clients as Paris Hilton and Brittany Murphy, the shop has been doing brisk sales by forgoing sportswear lines altogether in favor of trendy contemporary brands such as Alice & Trixie, Debbie Katz South Beach and T-Bags. Hilton reportedly spent $3,300 in 10 minutes after a quick tanning visit in April.

“I don’t care about the price point,” said Portofino’s proprietor, Jennifer Phillips. “If it costs $1,000, I’ll get it, because I know it will sell.” She said customers are even calling to ask when new shipments are coming in.

With the strong buzz, Phillips will be converting the simple two racks she currently has set up and transform the small section with shelves and a display window. Clients will be able to browse at their leisure while waiting for their personal services.

Another added benefit for customers: Sales clerks are not pushy with the merchandise. At Bacara Resort, a concerted effort is made to practice non-pressure sales tactics. “I look at retail as entertainment for our guests,” said Wendy Easterday, vice president of retail at the resort. “We’ll get the customer a glass of champagne, they relax, and they enjoy the shopping experience.”

It is this casual and intimate relationship that Rogiani appreciates. The designer, who is in the midst of planning her San Gennaro fashion show in Hollywood in September, is in a flurry fulfilling special orders from The Sports Club/LA. Her line is the only collection in the store to offer special orders; customers can order custom-made pieces for an additional $10 fee. “Anybody can go there and order what they like—specific color, length—it’s very innovative,” she said.

And Rogiani doesn’t see the trend slowing down anytime soon. With the demand for more and more merchandise, the designer is planning to launch a men’s sportswear line to be sold at the health and fitness club. She currently is looking for the right fabric. “I can do just pants, two styles. I don’t want to work that hard,” joked the designer.