REAL ESTATE

Famed flagship to close in NYC

BY Marianne Wilson

Calvin Klein will close its Madison Avenue flagship in the spring as part of a total brand restructuring that includes a “digital-first” approach.

The company, which is owned by PVH Corp., announced the closing as part of several “strategic changes” it is making in response to the evolving fashion and retail landscape. The three-level, flagship, which opened in 1995, went through a total reinvention in 2017, with its starkly minimal interior space transformed with bright yellow walls and ceilings, industrial-like scaffolding and construction platforms, vintage quilts and soft, tie-dye fabric sculptures. Calvin Klein said it is evaluating options for future retail locations, and will also be unveiling new consumer experiences both online and offline.

“Our industry is witnessing a historic transformation in consumer behavior which presents a significant growth opportunity as we look to grow the brand to $12 billion in global retail sales over the next few years,” said Steve Shiffman, CEO of Calvin Klein. “Now more than ever, we must double down on meeting consumer demands by creating culturally relevant products and experiences that engage communities by pushing fashion and culture forward.”

The closing of the flagship falls under one of the company’s newly announced key initiatives, which includes the relaunch of the higher-end Calvin Klein 205W39NYC collection under a new name, design approach and creative direction. The chief creative officer of Calvin Klein, Raf Simons, left the company in December.

“The relaunched business will be designed to evolve the traditional luxury fashion model by connecting with a diverse range of communities, offering an unexpected mix of influences and moving at an accelerated pace,” the company said.
In other initiatives, Calvin Klein has adopted a digital-first approach and introduced a newly formed “consumer marketing organization,” with specialized teams focused on new areas including consumer engagement and shopper experience.

In addition, the business will streamline its North America division to become a more effective organization, including consolidation of operations for the men’s Calvin Klein Sportswear and Calvin Klein Jeans business. The Calvin Klein retail and e-commerce teams will be integrated to create an omnichannel approach mirroring how consumers browse, shop and purchase today.

“These strategic initiatives will enable us to run a more modern, dynamic and effective business, as well as allow us to reinvest in the brand,” said Shiffman.

Along with Calvin Klein, PVH’s portfolio includes Tommy Hilfiger, Speedo, Izod, Van Heusen, Warner’s, Olga’s and others.

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