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What happened?
Phoebe Philo is headed to Bergdorf’s.
In a surprise move, over 100 pieces from the first and second collections, or ‘edits’, of Philo’s eponymous label will be sold at Bergdorf Goodman’s Fifth Avenue, Manhattan location from 11 April. A second delivery will follow in May.
To date, the line has sold exclusively online via a buzzy drop model. At Bergdorf, the collection will be in-store only. Alongside a presence on the fourth floor, Philo’s pieces will also be on display in Bergdorf’s famous windows.
“Phoebe Philo is without a doubt one of the most powerful design visionaries in the history of fashion,” Yumi Shin, chief merchandising officer at Bergdorf Goodman, said in a statement. “We are honoured to bring Phoebe’s uncompromising, thoughtful, and deeply luxurious work to Bergdorf Goodman in what we expect will be a fruitful, ongoing collaboration.”
In a recent interview with The New York Times, Philo said that by summer, she wanted to open “some sort” of physical space — first in New York, then London. Many took this to mean standalone, brand-owned stores. Those may well be on their way, but first, she’s veering down the wholesale route. It’s a strategic move, says Kayla Marci, senior fashion and retail analyst at Edited, in that an iconic department store like Bergdorf’s can lend its level of prestige before Philo transitions to an independent brick-and-mortar venue.
Jessica Quillin, luxury strategist and co-founder of brand strategy agency It’s A Working Title, agrees. “At every step of the launch of her namesake brand, Phoebe Philo has demonstrated a deliberate, strategic approach. Given the chaotic state of luxury e-commerce and the challenges of setting up an owned physical space, this launch into Bergdorf Goodman makes a lot of sense.”
Why does it matter?
Philo venturing into wholesale comes at a time when the model is seemingly imploding. Is this the designer’s endorsement of the wholesale model at this fractious time?
In part, experts say it’s not a vote for wholesale overall, but in favour of physical retail. Department stores continue to be plagued by uncertainty post-pandemic, Quillin flags. “Yet, I expect physical stores to begin to pick up again as shoppers crave more immersive retail experiences and become increasingly frustrated with much of luxury e-commerce.” In this, it’s particularly pertinent that the brand will only be available in-person at the department store.
Bergdorf’s was a safer bet than most, thanks to the reputational edge it has on many of its US counterparts. “Bergdorf’s remains a destination for many designers, particularly given its seminal presence in NYC,” Quillin says.
Establishing a physical presence was a necessary step for Philo, Marci says. “It signifies an initial step in mirroring the broader trend of luxury brands enhancing their physical presence to engage high-spending consumers, who tend to be less affected by economic downturns,” she adds. “In today’s climate, where luxury e-commerce platforms are struggling to connect with this demographic, this partnership expands Philo’s consumer base and positions the brand favourably in the market.”
Plus, wholesale is an easier venture for testing the waters of physical retail than establishing a standalone space. Given the limited run, Philo can gauge the responses of shoppers to pieces in a physical context, and adjust accordingly before making concrete expansion plans, Marci says.
It’s also a signifier that despite Philo’s near-untouchable status — thanks to successful stints at Celine and Chloé — the direct-to-consumer online-drop strategy may be too high risk on its own. “Her eponymous line, while hyped, hasn’t yet attained the same level of prestige as established luxury houses with rich histories,” Marci says. Prices are steep, which drew critique from some Philophiles. Some buyers reportedly returned items after finding issues with sizing and fabrics — another impetus for a physical offering.
The move isn’t necessarily a nod to wholesale over DTC drops. But it is an indicator of the need to be cautious in a still-unsteady retail environment. As Quillin says: “It is a sign of the times when a designer of Philo’s reputation opts to move away from an owned physical space.”
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