It’s the old mantra – “if you can’t beat ‘em, join ‘em.”
Loehmann’s, the off price department store chain celebrated for its “Back Room” of designer apparel at discount prices, has 40 stores and an online presence offering those same deep discounts on high fashion, including shoes, accessories and men’s products. An announcement last month detailed the partnership created between the department store chain and shoe retailer DSW, where DSW will serve as footwear supplier to Loehmann’s, and be responsible for the planning, procurement and delivery of Loehmann’s entire shoe offering.
DSW will bring the buying power and expertise that Loehmann’s, with only 40 stores, could not achieve on its own. With careful assortment planning, DSW can ensure that the retailer has unique offerings that will attract a different customer and complement, rather than directly compete with, their own stores. For DSW, this is a chance to increase their positioning in the luxury shoe market, where brands that would not have sold under the DSW name will have an established sales venue through Loehmann’s.
The partnership, and unique approach of using another retailer as a supplier, has the potential to put both parties a step ahead in the market. Now that’s a perfect pair!
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