Retail is a small world and we tend to know what is going on with moves, openings and closings. This one was kept relatively under the radar until now. Karen Millen is to close on Grafton Street.
This is interesting because its the only decent retail property on Grafton Street at the moment and since it is the main shopping street in Dublin (not the only but the main) there is quite a bit of interest in it.
Apparently this closure is not related to the shaky future of the brand but rather a decision by the landlord to close the lease, upgrade the property before renting at a higher price to a new brand. Great. So higher rents again. This is not to be sniffed at considering that rent for Karen Millen was coming in at a cool €1,050,000 before it was reduced at the height of the recession to €450,000.
So no word on who is going to take it over yet but there have been some rumors and there have been some new brand movements around Grafton Street already with the introduction of COS recently.
Karen Millen is under pressure and there is an examiner currently preparing a long term assessment of the brand and a survival plan. This includes a plan to get rid of the awful image that the brand have. I must say, I shop like a demon and I avoid that place like the plague. It's not that its tacky or cheap but rather, its just boring, plain and expensive. I don't get excited about the clothes at all and I find it a place that doesn't factor into my shopping. If you want to get people to change their minds about the brand then you have your work ahead of you. Although rumors that they are appointing a new buyer should help them. A buyer can make or break a brand.
One of the things I found interesting as well was that Karen Millen is no longer part of the Aurora Group who also own Oasis. It is owned by an Icelandic bank who own 90% of the company with KM owning 10%. When I worked for Oasis, KM was still part of the Aurora group. I am guessing this was sold off as a loss maker because I have often wondered how Aurora had pulled themselves out of difficulty. I was just discussing Oasis the other day with friends as it's terrible. The branch near my workplace is always empty and depressing looking. The clothes have taken a terrible dive into bland and dull. I know that not every brand will appeal to me as a consumer but I am shocked by how off trend and dull the clothing have become. I will also add that the clothes I wore during my time at Oasis were the worst fit I have ever endured. I think the price point which is close to Topshop - is too high for basics as well. By basics, I do not mean a simple T-shirt or a basic in terms of American Apparel style but basics in terms of a simple dress which is just, basic and bland.
Whoever takes over from Karen Millen aside, the brand itself has a long way to go in terms of improving its image! I believe the Irish Times described it as 'footballers wives' style....ew....and ouch!
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