Levi's Australia/New Zealand retail director Laura Tempest talks to Josh McDonnell about the reasons why the brand has headed to Adelaide as part of its plans for further expansion in 2017.
Why the Adelaide store? Reasons behind making it the flagship?
We have a lot of history in Adelaide.
We had our first purpose built facility in Elizabeth in the 70s so we still run our distribution centre out of their for Australia and New Zealand.
With that, the amount of stories you get out of Adelaide with that level of history of the brand being there. Even when we opened the store people came up to me and said “oh I've got to tell you this story.”
So it was just a natural fit in doing that, great location and being able to serve those fans we have in Adelaide, that was why.
Were there buyer patterns behind it?
Probably more than any it has been the market screaming at us to do something in Adelaide and a lot of those have been direct feedback there and the site was right and the timing was right. Being able to use it as a test market for expansion plans in the future.
So this is a testing ground for expansion this year?
We've got a real view that the market is really engaged with Levi's. It's such an inclusive brand that it transcends ages and demographic and gender. The site allows us to include all of our brands in terms of capsules through there.
We do a commuter range and the obviously the strength of 501 in the market and also being able to bring new fits to the market.
Having the exposure through a store that is 280sqm, we can present the brand in the best way we see as conducive to supporting the wholesale side.
You mentioned Adelaide as part of plans for continue expansion, what further expansion can we expect to see flow on from that?
I can't say for Adelaide but for the rest of the Australian market we are certainly looking for new locations that support our expansion, its just finding those right sites. Plans for another four or so stores in the 12 months.
Any areas in particular?
Yes but all are little irons in the fire at the minute, so to early to declare where they will be but it will generally be key locations. So it'll be more around not necessarily CBD but strengths in shopping malls and high street locations.
So we are talking around Sydney and Melbourne?
Correct, so we have three stores in Sydney currently and so further plans for Sydney, Perth CBD, Melbourne and the New Zealand market.
And how do costs compare and play a role in expansion and Adelaide?
That's probably part of why we've gone there, being that it's a test market it's a cost effective option, rentals are lower and that return rate, we don’t expect the sales to be at the level we may encounter in terms of a Sydney or Melbourne CBD location. But certainly from an economy to scale that stacked up well for us.
Have there been different buyer patterns since the opening and prior?