Scoop NYC, the fast growing retail chain that rode the contemporary designer explosion of the turn of the 21st Century to great success is facing some new challenges. WWD reports that the chain has closed its 10,000 square foot flagship in SoHo (pictured above) and is mulling the future of other branches —possibly that of the entire chain.
The retailer's ailment is not sales, apparently, but its rapid expansion during a time when prime locations have been scarce and renting only at top dollar rates. Margins at scoop are said to be in excess of 46% of sales and over $1,000 per square foot, enviable business levels by anyone's standards, but they are being eaten away by rents that are too high and stores that are too big, hence the closure of the chains largest and possibly most expensive one.
Started just 20 years ago by Stefanie Greenfield and Uzi Ben-Abraham, Scoop helped pioneer the upper contemporary/ designer boutique chain by mixing prestige designer labels like Missoni, Margiela and Derek Lam with resurgent premium denim brands and more casual contemporary fare, and presenting merchandise by lifestyle rather than by label. The billed the store as "The Ultimate Closet", and their concept won acclaim and lots of customers. Eventually, menswear was added in the same manner, and though the results in that category wound up looking fairly middle-of-the-road in terms of fashion, commercially it was a hit, offering side-by-side shopping for couples. Similarly merchandised chains like Intermix and Barneys Co-op also thrived alongside Scoop in its heyday, But Barneys has discontinued the Co-op division and converted its locations to more upscale, small Barneys boutiques, while the broader expansion of Intermix is now backed by Gap Inc. Ron Burkle’s Yucaipa Cos. acquired Scoop in 2007, and is said to have ruled out a bankruptcy filing, though liquidation may not be off the table. The chain still has 15 stores left, mostly in New York City and Long Island, but also in key cities including Los Angeles, Dallas, Miami, Chicago, Las Vegas and Atlanta but only with single units. Its most recently opened store is in Brookfield Place in the financial district. It sounds like we should expect to see a few more Scoop store closures in the coming months, but hopefully, the chain isn't ready to give up the ghost just yet.
Or maybe it is.
Over the weekend, Scoop stores started running 10% Off storewide store closing sales in all remaining 15 locations with merchandise expected to hold out for 8 to 12 weeks. The aforementioned overhead costs have reportedly clobbered the chain out of viability, with with unrealistic double digit comp numbers required to ensure profitability against high rents on oversized stores. In other words, there is no feasible path forward for the chain. In New York City, the remaining Scoop locations are on Third Avenue between 73rd and 74th Streets, Brookfield Place, and separate men's and women's stores on Washington Street between 13th and 14th Streets in the Meatpacking District as well as East Hampton and Wheatley Plaza stores on Long Island.