Tommy Hilfiger Opens Fifth Avenue Flagship

Filed Under: Fashion Smashion Business Blitz Collection's Bureau

Generally speaking, right now is not the time to open up shop for most businesses.

Times are tough!

But the unsavory economic climate hasn't deterred Tommy Hilfiger who, after almost a quarter century in business, is opening up a 22,000 square foot flagship store on Fifth Avenue today in New York City.

According to Hilfiger, the pricetag for the endeavor is "in the tens of millions," so far, but "all the bills haven't come in yet and we've been paying a lot of people overtime," so the bill is expected to grow.

Hilfiger signed the lease for the swanky Fifth Ave location, estimated to cost about $1,631 per square foot, back in 2008, before the economy tanked.

CEO of Timmy Hilfiger, Fred Gehring, said "In the early stages, we weren't looking at this particular location and this particular size. We were a little less courageous. We were just coming out of a reorganization… As our reorganization and brand development progressed really well, we gained more confidence."

He goes on to insist that had they known what was on the horizon for the economy, they still would have signed the lease, saying that "you take a store like this for the long run. It's a very strategic initiative. You can wonder had we waited a year whether we might have been able to sign a slightly more favorable lease. This is a real anchor presence for our brand globally. We are entering into it wholeheartedly and enthusiastically. We aren't cutting any corners."

That's for sure. The team in charge of decorating the flagship was extremely detail-oriented, employing hand-painted toille wallpaper and custom furniture. The look for the store is "grittier and more streetwise in the basement, where Hilfiger Denim is housed, becoming increasingly refined and sophisticated as you walk up to the fourth floor," said Hilfiger.

Gehring estimates that the store will sell about $1,000 per square foot.

Hilfiger notes that they "wanted this to be our global flagship, our stage to the world. We're set up to do a lot of business. We've also set up [the store] as an image vehicle. Our success in Europe is such that it dictated that we have a global flagship."

The company has around 1000 stores worldwide, only 11 of which (including the flagship) are in the United States.

A bold move in tough times, but sounds like they're pretty confident. Good luck to them, and congrats!

[Image via AP Images.]

Posted: September 14, 2009 at 3:54 pm