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FRANCESCA’S COLLECTIONS TARGETS COLLEGE TOWNS

By Molly Knight

Not that H&M is likely to lose any sleep, but there’s another retailer expanding fast on the “cheap-chic” model. Since launching at Woodway Village, in Houston, in 1999, Houston-based Francesca’s Collections has opened 67 additional units across 22 states. Thirty-seven of those have opened since January of last year. Sixteen operate in Texas and nine in California, but the company is now targeting other regions for growth.

“We’ve had so much expansion in the last few years that we’ve pretty much saturated the California and Texas market, so right now we’re looking to expand quite extensively in Kentucky, Tennessee, Alabama and Georgia,” said Lacrecia McGregor, marketing manager at Francesca’s Collections. “The plan is to have 100 stores open by the end of 2007, which is incredible when you consider we only opened 31 stores in the first six years and 37 since the beginning of ’06.”

Francesca’s Collections sticks mostly to traditional tops, dresses, necklaces and bracelets, but that’s not to say its apparel is entirely devoid of eccentricity. A bright red trench-coat dress might be on display between a black, studded handbag and a flamingo-pink belt. “If you’ve seen it on a celebrity, you’ll be able to come into our store and find some variation of it,” said McGregor. But just because one does not pay celebrity prices does not mean the clothes are cheaply made. Affordability is as important to the company as fashion, McGregor says. A classic green cardigan retails for $28, and a charm bracelet goes for $21. Though the company carries handbags from famed designer Cynthia Rowley at roughly $300 to $400, the majority of the stylish purses go for much less than $100.

“What they’re doing is speaking to a woman who maybe can’t afford to go designer all the way, but at the same time doesn’t want cheap-looking clothes that don’t feel good,” said Dr. Robert K. Passikoff, president of Brand Keys, a New York City-based retail consulting firm. “I would say that most women don’t have an unlimited budget with which to go and buy a wardrobe, but they still want to be fashionable. This store is the right place for them.”

Francesca’s Collections is targeting fashion-conscious women and girls (between 14 and 40), McGregor says. “We are particularly successful around college cities and towns, because college kids and grad students are right in the middle of our demographic,” she said. “We tend to stay away from big cities, because that’s not who we are.”

Muneezah Kabir, a freshman at the University of Texas at Austin, frequents the Francesca’s Collections store at Central Park Shopping Center, in Austin. “They’re very trendy, the stitching is high quality, and they pay attention to detail — which is something Forever 21 doesn’t do,” said Kabir. “Also, they’re less commercial, which has a bigger appeal for someone who is really into fashion. The likelihood that you’re going to run into someone at a party wearing the same dress as you isn’t as high as if you got it from a place like Forever 21.”

McGregor says Francesca’s Collections may appeal to women who frequent Anthropologie or Urban Outfitters but who are looking for something different. “We have the same feel as Anthropologie, but we’re not as expensive,” she said. “Urban Outfitters offers a more urban look. Your grandmother might be a little bit intimidated going in and buying a gift, whereas we appeal to a wide range of women shopping for their younger relatives.”

One aspect of a Francesca’s Collections store that lures a large demographic is its exterior representation, says Vickie Sherman, director of marketing at Simi Valley (Calif.) Town Center, where the company opened a unit in November 2005. “They’ve got two or three gorgeous, good-sized windows that are just so bohemian-chic and enticing,” said Sherman, noting that the store is near the center court and Abercrombie & Fitch. “They’ve been a great little tenant for us.”

As far as jewelry designs go, McGregor says, consistency is what has allowed the chain to stay hip. “We’ve had the same buyers since the beginning,” said McGregor. “They actively and aggressively scout runways in London and Paris to find out what’s going to be in fashion down the road. It’s a constant battle to stay ahead of the curve and switch it up before accessories get stale.”

Management seeks locations in suburban outdoor lifestyle centers but tends to shy away from malls. “We won’t really do one unless it’s a really popular and large mall,” said McGregor. “Outdoor centers are the new trend in retail and just work better for us.”

Store size varies by location, but the average unit measures about 1,500 square feet. “We feel that’s the optimal amount of space for everything we have to offer,” said McGregor. “We don’t want our spaces to be too big, because we want our boutiques to feel like an overflowing basket of sounds, scents and beautiful things that catch the eye. Eventually, we see ourselves in all 50 states. The sky is the limit. And the way things are going, we’re not looking to slow down anytime soon.”