California Apparel News

Conventional wisdom on the luxury market states that luxury brands such as Louis Vuitton, Catherine Malandrino and Prada are more recession-resistant than other segments of the fashion industry. Luxury house Hermegrave;s will test this wisdom when the venerable 171-year-old French brand opens a 2,500-square-foot space in San Diego’s Fashion Valley retail center the week of Thanksgiving.

The store will debut during what may be Hermegrave;s’ most ambitious expansion in the United States, according to Robert Chavez, president of Hermegrave;s USA, the luxury brand’s American division. The San Diego boutique will be one of four Hermegrave;s stores scheduled to debut in the upcoming year. A location at Las Vegas’ Wynn Encore Resort will open in January 2009. A Denver location is scheduled to open in March 2009. Also planned is a Hermegrave;s boutique for men in New York, as well as a Hermegrave;s store in Bellevue, Wash.

This expansion comes at a time when the French design house has been affected by the weak economy. On Nov. 6, Reuters reported that Hermegrave;s of Paris trimmed its 2008 sales-growth target from a solid 10 percent sales increase from the previous year to a 9 percent to 10 percent increase in sales. However, Chavez said the American division is doing well. “In the first nine months of 2008, we had steady and solid growth,” Chavez said. “Obviously in the fourth quarter, we are seeing a bit of a slowdown, but Hermegrave;s will end the year with a good sales performance.”

The San Diego store was inspired by the grand style of Hermegrave;s’ Parisian flagship. It will feature mosaic stone floors, French cherry wood and—with a nod to good California weather—a lot of natural sunlight. Dennis Voorheis, managing director of the San Diego store, will make biannual buying trips to the Hermegrave;s Paris headquarters to make purchases that will ensure his boutique is different from the 20 other U.S. Hermegrave;s stores.

The company chose to build in San Diego because San Diego–based sales were increasing on the company’s Web site (www.hermes.com). Also noted was a prominent pattern of sales from San Diego residents at the Hermegrave;s boutiques in Beverly Hills and South Coast Plaza. The South Coast Plaza store is currently undergoing a renovation and will reopen in March 2009 as a 7,000-square-foot store.

Chavez expects any store focused on refined craftsmanship to do well. “People are still willing to make an investment in something that will last a long time. Hermegrave;s is something that is passed down from generation to generation,” Chavez said. —Andrew Asch