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10:09 September 13th, 2007

Vera! Vera! What has become of you?

Posted by: Sarah Coffey
Tags: Uncategorized

vera-wang2.jpgIf you fell in love with that $389 Vera Wang comforter set you saw at Kohl’s last weekend, it’s a good thing you waited for the inevitable sale you saw coming.

Kohl’s Simply Vera line of apparel, accessories and home goods appeared in stores on Sept. 9 — and only days later the whole kit and kaboodle is being marked down 30 percent.

Prices for items from the Vera Wang line run are among the highest at Kohl’s, from $389 for a comforter set to a $128 car coat, down to $54 for a gold pleated blouse and $29 for a lace camisole. Kohl’s sells many of its products at markdown.

Kohl’s is hoping the partnership with Wang, best known for her wedding gowns, takes its clothes in a trendier direction that Kohl’s hasn’t been known for in the past and draws in new customers. The mid-priced retailer is betting on the line to account for $150 million in first year sales.

Analysts, however, are concerned that the line may be too fashion-forward for the typical Kohl’s customer.

“The new line looked impressive, but as we’ve outlined before it may be too fashion forward for Kohls core demographic,” wrote J.P. Morgan analyst Charles Grom in a research note, following a visit to several New York area Kohl’s stores.

“Women’s apparel was nicely presented near the front entrance with store associates reporting strong initial customer reaction, with some pushback on the higher price points. Within intimates, however, the feedback was more negative with shoppers apparently browsing, but not necessarily buying,” Grom wrote.

“Also, the home section (e.g. sheets/comforters) looked OK with inviting bedding displays, but other parts of soft home were more run of the mill. Finally, feedback in shoes was mixed with a clear buzz around the product, but not a huge reaction at the registers based on our observations,” Grom added.

Kohl’s last week said its sales at stores open at least a year, a key metric for retailers, fell 0.6 percent, citing softness in the U.S. Southern and Southwest regions.

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