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STORE FOR THE MYSPACE SET

DEEGIE'S CARMA TARGETS TEENS WITH AN INTERACTIVE SUPERSTORE CONCEPT

By Neil Janowitz

Carmela Spinelli and John R. Wilson set out to open a clothing store about two years ago. Only they did not want to open a clothing store, exactly. What they wanted to open was “the space for the MySpace generation: an environment for 18-to-28-year-olds that blends cool architecture, music, art, food and fashion,” in Spinelli's words.

That is to say, they wanted to open Deegie's Carma. At press time this New York City–based, aspiring-to-be-something-for-everyone superstore was on track to open this month at the Legends at Village West lifestyle center, in Kansas City, Kan., complete with café, salon and robust audio-visual system. And a splay of trendy clothing too. “It's taking the age group throughout their entire lifestyle dressing demands — college to career,” said Spinelli. “We go from extremely casual to formal, including events like proms and weddings. And all of the merchandise is presented in a very straightforward manner as well, which will be a relief to shoppers tired of navigating department stores looking for a specific item. Now they can come here, hang out, and we'll address all their needs.”

Wilson had been an executive at Italian fashion chains Salvatore Ferragamo and Vestimenta as well as a director at Net Worth Solutions, an investment banking firm, where a part of his focus was menswear. A friend introduced Wilson to Spinelli, who was associate chairwoman of the fashion design department of Parsons The New School for Design, New York City. Wilson realized that Spinelli's background would be invaluable for the store concept he was envisioning. With Spinelli overseeing the creative side and Wilson in the CEO's seat, they set out to right the wrongs they saw in the world of youth fashion.

“It's shocking how often young customers will go shopping for something dressy, and because they're dressed casually — wearing, for example, camo, or sweats — the employees will walk right by them,” Spinelli said. “That is not going to happen in Deegie's Carma. They're going to come to us, because they know we're not going to try to fit them into their father's business suit. Believe it or not, that's completely revolutionary.”

Spinelli and Wilson are choosing a forward-looking blend of wares that eschews many of the trends of the past five years. Rather than focusing on T-shirt and jeans or distressed brown-palette vintage styles, Spinelli says they are going for a cleaner, more fashionable and sophisticated look. The price-point range is broad, but the core items are priced comparably to Banana Republic.

The idea is to provide not just clothing, but also an experience, Spinelli and Wilson say, including a 1,500-square-foot salon and a similar-size café, with a speaker system providing the soundtrack. “You come to Deegie's Carma for the environment,” said Spinelli. “It's not angry or rebellious, but rather upbeat and empowering.” The company has spared no expense in making the salon and café distinct destinations. The full-service salon offers manicures, pedicures and haircuts for men and women; the café, on a raised platform at the center of the store, is accessible off a fashion runway, seats roughly 50 and features three 50-inch plasma TVs. “A lot of times when stores have cafés, they're put in the basement,” said Wilson. “Ours is literally the heart of the store.”

The café is also going to be a hub for events, they say. They envision the space as a venue for trunk shows and appearances by clothing designers, all of which will be simulcast on the store's Web site. “You see those types of attractions in the 25-and-older groups, but they've never been done for this demographic,” said Wilson. “But the whole idea behind Deegie's Carma is to say to our shoppers, ‘We think you're important, and you're more mature and knowledgeable than you get credit for.' ” This is why the employees (the company calls them stylists) have been charged with creating an unpretentious atmosphere and are as ready to discuss coming events or salon packages as to help assemble an outfit.

Some analysts call this approach to youth retailing very savvy. Jeanine Pesce, a consultant at the U.S. arm of PromoStyl, a Paris-based trend forecast firm, says she appreciates the way Spinelli and Wilson are attuned to the wardrobe attitudes of today's teens and 20-somethings. “Deegie's Carma hinges on the idea of personalization and customization, which is the prevailing trend in youth culture,” she said. “Kids today don't have a singular guiding light. They're taking all the current trends and smacking them together. There are no preppy kids, no skaters — they all mix and match and say, ‘This is my look.' A store that offers the pieces for that mixing and matching could be very successful.”

Pesce says Deegie's Carma gives consumers something to connect to, which is increasingly important for that age group. “It's not unlike Colette, in Paris, which held art openings and literary readings and had a water bar, or even Kitson, in L.A,” she said. “People feel like the stores are letting them in on secrets.”

Robert K. Passikoff agrees. Passikoff, president of Brand Keys, a New York City–based retail consulting firm, asserts that the days when stores could skate by based on merchandise alone are over. “You can always find a good product mix for this demographic,” he said. “That's why the experiential aspects are becoming essential. Deegie's Carma has a smart idea, and they're one of the first to do it.” Passikoff says other stores have tried incorporating cafés and the like, but few have done so in a way that enhances the brand, which, ultimately, is the goal.

“You don't want to be a landlord,” he said. “You want to be a retailer. Macy's restaurants don't seem as though they represent Macy's, and that means they won't resonate with the customer. Most stores are too concerned with optimizing floor space for their products to realize that devoting that space to entities that enhance the brand identity is what will make the difference.”

Having made that same observation themselves, Spinelli and Wilson say they will not wait to see how the Kansas City store fares before pursuing future deals. They have signed on at the coming Legends at Sparks Marina, in Sparks, Nevi., and the Deegie's store there is scheduled to open next spring. Beyond that, the company is targeting some 20 other markets of various sizes. Wilson calls Kansas City a tier-two market in terms of population, but one that is significantly underserved where fashion is concerned.

That was a chief draw of Deegie's Carma, says Bill Schultz, vice president of development at RED Development, which manages and owns Legends at Village West. “It's a new experience, designed to be something distinct for younger shoppers,” he said. “And it's heavy on service and has an interactive experience, which means it's going to appeal to curious passersby as well.”

Spinelli says she and Wilson look forward to breaking into such markets, where shoppers are yearning for options. She and Wilson are keen on being in lifestyle centers or revitalized downtown areas, she says, though they do not rule out enclosed malls. Wilson says they are eyeing stores measuring 15,000 square feet, though they could go as small as 8,500 without losing the café and salon. They would consider opening 5,000-square-foot clothes-only shops too.

Even in such smaller sites, though, the company will still be holding events, Spinelli says. After all, it's not Deegie's Carma if you're not experiencing something.