As we’ve discussed over the past few weeks, the bifurcation of retail highlights the differences in performances amongst retailers and brands against the backdrop of economic uncertainty for some consumer cohorts. While this extends to both discretionary and nondiscretionary industries, it feels more pronounced in traditional retail categories such as apparel.
Apparel has had an interesting journey in 2024; many brands have regained their footing after years of challenges and once high-flying names struggle to connect with today’s visitor. What is clear is that for shoppers, apparel brands need to prove their reason to remain in the consumer’s retail rolodex, and many times it can’t just be on price. Even brands that cater to higher income consumers aren’t immune to this fact.
Differentiation and innovation are key to standing out in today’s saturated apparel market. Reformation, in its 15th year of business, appears to have done both very well. Seamless integration of channels, a commitment to sustainability, and a premium, yet attainable price point all combine to create an apparel brand that stays relevant with its fans. Reformation has become a staple for event dressing as well, with a very popular wedding business.
Year-to-date in 2024, Reformation visitation is up 58% compared to last year, and that’s with only one new store location, a flagship in Beverly Hills, opened in February. Compared to most other apparel retailers this year, especially in premium sectors, the growth in foot traffic is impressive. The retailer excels in styles that have benefitted from post-pandemic trend booms, such as formal wear and wear to work items for PersonaLive segments like Educated Urbanites and Ultra Wealthy Families, and has been able to maintain its momentum despite the cooling off of discretionary categories.
Beyond that, Reformation has built itself to be a destination for its shoppers. Looking at cross-visitation for visitors to Reformation, 13% visit the chain from home and 17% head home after visiting; home has the highest cross-visitation of any category. Shoppers clearly see Reformation as a worthy retailer to make a special trip to, and that may be in part due to its price point and category range.
Visitors to Reformation also frequent Nordstrom, 47% of visitors in 2024 to be exact, with the chain as the top cross visited apparel retailer. Nordstrom does carry Reformation as a wholesale brand, which could contribute to this connection.
The Beverly Hills flagship store, which opened in February, is already one of the top performing stores from a foot traffic perspective. Strategically located near Erewhon, which has high levels of cross-visitation, and the location has the 4th highest traffic volume in 2024. The store format is similar to most others in the fleet, but the high traffic location has clearly benefited the brand.
Reformation’s success defies a lot of retail industry held beliefs in 2024. Its store fleet, broad category range, and commitment to its customer base has clearly formed a strong bond between the brand and its visitors. Building inherent value, even for a premium brand, is a clear learning from Reformation that may help others across the discretionary space.
