A few days ago, Limited Brands, the parent company of popular brands such as Victoria’s Secret and La Senza, made a major announcement. They revealed that their luxury New York store, Henri Bendel, will soon be closing its doors. This decision marks the end of an era for the iconic 5th Avenue location, which has long been considered one of the headquarters of American luxury.
For those who are unfamiliar, the Henri Bendel brand is known for its distinctive striped bags and packages, often seen on the arms of fashion-forward individuals and even featured in successful TV series. However, after an impressive 123-year run, the store will be shutting down in January 2019. Limited Brands CEO, Leslie Wexler, explained that the closure is part of the company’s strategy to “improve profitability” and focus on brands with greater growth potential.
Limited Brands acquired Henri Bendel in 1985, and unfortunately, the brand is expected to record an operating loss of $45 million, despite estimated revenues of $85 million. This financial struggle may have contributed to the decision to close its doors.
Founded in 1895 by Henri Bendel himself, the brand initially catered to its birth city, New York City, as evident in its flagship store on prestigious 5th Avenue. However, the brand underwent a major shift in 2009 when it decided to cease selling clothing and instead focus on bags and accessories. This change in direction was followed by another bold move in 2014 when Henri Bendel stopped selling third-party brands and focused solely on expanding its own in-house collections. They even ventured into jewelry, travel, home, and beauty lines for a period of time. Unfortunately, these efforts did not seem to have the desired impact.
Henri Bendel faced fierce competition from other powerful luxury retailers such as Saks Fifth Avenue, Bergdorf Goodman, Neiman Marcus, and Nordstrom. In fact, the latter recently announced surpassing its Q2 2018 sales figures. It seems that Henri Bendel’s positioning failed to attract customers, especially the younger target audience. As a result, the brand’s online store and its 23 physical boutiques across 11 American states are expected to close in January 2019.
Despite the closure, Henri Bendel will continue to serve its customers until the final day and will even offer new products until the end of the year. This gesture indicates a commitment to providing a positive shopping experience until the very end.
(Note: There are no relevant links to add in this article)
