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CANADA KINDER

The U.K.’s Accessorize succeeds north of the border after a U.S. flop

By SUSAN THORNE

British specialty chain Accessorize fizzled when it tried to break into the U.S. market in 2001, but the retailer, which sells fashion accent items ranging from barrettes and bangles to the latest sarongs and sandals, is flourishing in Canada.

Four stores have opened since December, and a national expansion of the brand is in the works, says Margot Franssen, president and CEO of Bibelot, the Toronto-based Canadian franchise partner of Accessorize’s parent company, Monsoon, which is based in London.

“I’m going to do 50 stores in five years,” she predicted. Here’s why: “Accessorize offers something completely different in this market — a shopping experience that women are looking for,” Franssen said. Bibelot owns the rights to the Accessorize, plus Monsoon’s eponymous and Monsoon Kids banners in Canada.

Although the specialty accessories market is crowded in Canadian shopping centers, Franssen says Accessorize stands out because of its unusual merchandising. The shops, which average about 750 square feet, group 1,500 items by themed color combinations for easy browsing rather than placing all handbags or all gloves together as accessory departments in larger stores typically do, she says.

Shoppers can also get their hands on and test drive all merchandise in the store, including jewelry. New products arrive weekly, keeping the assortment current and fresh — an important feature, because accessories move more quickly than basic apparel items, Franssen says. “We tell customers who are interested in an item to grab it, because it won’t be here next week,” she observed.

Founded in 1984, Accessorize operates more than 110 stores in the U.K. and has a growing collection of company-owned and franchised stores in such far-flung locales as Russia and Brazil. But the brand has a troubled past in the United States.

In 2000, Charming Shoppes of Bensalem, Pa., (owners of Fashion Bug and Lane Bryant), entered into an agreement with Monsoon Inc. to operate both the Monsoon and Accessorize store concepts in the U.S., reports Gayle M. Coolick, director of investor relations for Charming Shoppes; Monsoon retained an 80 percent ownership stake.

Under the agreement, nine U.S. Accessorize units opened in early 2001, concentrated around high tourist-volume areas near Washington, D.C. and New York City. However, the drastic drop in tourism after September 2001 meant that the new stores never reached their potential, and they were closed in 2002.

Nonetheless, many observers are certain Accessorize will be a success in Canada, particularly because Franssen will be overseeing the business. After all, she was responsible for bringing another English retailer, The Body Shop, to Canada in 1980. She expanded that operation to 130 stores before selling it last July.

As for Accessorize, Franssen says she is confident that the stores’ bracelets, bags and shoes will bring that brand the same kind of success in Canada that it enjoys in other parts of the world. “We’re hoping for [annual] sales of between C$1,600 ($1,323) and C$2,200 per square foot,” Franssen said.

The first Canadian Accessorize stores opened on Vancouver’s Robson Street and Toronto’s Yonge Street in December, followed by one store each in shopping centers in Burnaby and Victoria, B.C. Purchases at the Canadian Accessorize stores average about C$35 per ticket, she says. That compares with £760 per square foot ($1,460; C$1,801) in the U.K. and Ireland in 2004.

The chain is well suited to the Canadian market, says Wendy Evans, president of Evans & Company Consultants, Toronto, and author of European Retailers in the North American Market. After visiting the Yonge Street store, Evans praised the large selection of merchandise and its appeal to a broad age range. “The store does a great job. There’s an interesting mix of items that can be young or older, too, and the colors were fun. It’s very ‘with it’ and fashionable, and they will definitely do well here,” she concluded.

The sales won’t be gained without a fight, though. In Canada’s shopping malls, Accessorize faces significant competition from teen-oriented Claire’s Accessories, owned by Chicago-based Claire’s Stores Inc., and Ardene, a Montréal-based accessories chain that has 350 Canadian stores.

Nonetheless, there is a market niche for Accessorize, says Riordan McCarthy, leasing manager for Metrotown Centre, the Burnaby, B.C., super-regional mall where an Accessorize store opened in March. McCarthy cites as strengths Accessorize’s unique merchandise mix — the company features more soft goods such as hats and slippers and less jewelry than other players — and its fashion-forward, frequently refreshed inventory.

“It’s going to be a fresh look every season, and coming from the U.K., they’re going to have an edge on where fashion’s headed,” he predicted. “At this shopping center, we like to push the envelope in terms of bringing in new concepts, and we think this one has potential, particularly given its success in England and the backing by the previous owner of Body Shop Canada.”

Franssen says her stores’ performances to date show a favorable response from Canadian shoppers. She declines to give specific sales results, but reports that this past Christmas season “really knocked my socks off. We didn’t have sales or ads — we just opened the door, but the results were fantastic,” she said. Many customers familiar with Accessorize shops in Europe are excited to discover the stores in Canada, she adds.

Three new Acessorize shops will open in the Toronto area by this coming Christmas, but Franssen says expansion is limited to about 50 by a lack of mall locations (her preferred venue), since almost no new regional malls are being developed in Canada today.

But that doesn’t mean there aren’t other retail avenues for Franssen. Consultant Evans says that the Monsoon label would be another good fit for the Canadian consumer should Franssen choose to import that concept from England. Franssen says she has no such plans for Monsoon, but is entertaining building a Canadian presence for the Monsoon Kids brand.