California Apparel News

Karen Kane Inc.’s new retail venture and activewear retailer Lucy are key anchors that have opened at a new $5 million mixed-use development on upscale Montana Avenue in Santa Monica, Calif.

For contemporary designer Karen Kane, there wasn’t a hint of fanfare for the hushhush debut of her Robert Michaels boutique on Aug. 20. The 1,000-square-foot space—named for her two sons—is a departure for Kane, who has created an $80 million fashion empire.

“This has nothing to do with her companyhellip;. It’s just a personal hobby of hers and something different she wanted to pursue,” said Lonnie Kane, president of the Vernon, Calif.- based firm and the designer’s husband, who was anxious to keep the two entities separate.

A crystal chandelier, distressed-looking tables and vases overflowing with flowers and even an elegant silver tray of cookies are part of the store’s feminine touches. Antique laces, embroidery and beading are some of the details of the line, which includes button-down shirts with shirred backs, toffee-colored leather shirt jackets, cashmere sweaters and antique belts that cost upwards of $1,800. Store sales are expected to hit $800,000 in the first year, say the owners.

Another draw to the center is the new Lucy store, which marks the fifth location for the Portland, Ore.-based sportswear company. Lucy’s survival story defies business-school logic—an e-commerce player begun by a former Nike executive shuts down its Web site to focus on its profitable brick-and mortar business begun in New York. Lucy stores in Burlingame and San Jose, Calif., and in Bellevue, Wash., have opened in the last year, and an additional unit is scheduled to open this fall on another tony shopping street in Southern California, Ventura Boulevard in Studio City. By year’s end, the company plans to have eight stores open with another 12 slated for next year in Arizona, Texas and Colorado.

“We’ve already established great brand identity on the Web, where our top-line sales were stronghellip;. We just couldn’t wait five years to be profitable,” said Beth Zappitello, Lucy’s director of marketing.

Geared to the 25-to-45-year-old active female, the 2,000-square-foot location has an air of a boutique more than a sports store with its vivid peach, orange and yellow walls, stained concrete floors and bright circular lighting fixtures. Private label makes up about 40 percent of the merchandise, which also includes clothing by Adidas, Puma and Nike and more fashion-oriented pieces from Hard Tail and DKNY Active. Shoes by Nike, Puma and Adidas and an extended assortment of bras round out the mix.

Zappitello said fitnessminded Montana Avenue shoppers fit the company’s demographic.

“We’ve got a lot of old Web customers in the area who have asked us if we’re part of Lucy.com,” she said. “Besides, it’s hard not to like a street like Montana with its great stores and energy.”

Other stores slated for the 11,000-square-foot development are Renko, a women’s high-end clothing store; Jurlique skincare out of Australia; jeweler Francesca’s Collections; Alexander Zar shoes; and a men’s store from the owners of Cozzi Cozzi clothing located across the street. The site also includes parking for 21 cars and four apartments on the second level.

Developed by a private West Los Angeles firm, the Mediterranean-styled complex has generated strong interest on a street that commands monthly rents of $5 to $7 a square foot, according to Ed Sacshe, the project’s leasing broker.

“Leasing started slowly, but after the first of the year, things have moved quickly,” he said.

Apparently, the karma left over from the previous land user—a mortuary—didn’t distract from the deal-making.

“We’re bringing the site back to life,” Sacshe quipped.