A Word From The Owner: DNA 2050 Responds

Recently we reported that NoHo boutique DNA 2050 had quietly exited the scene, and naturally assumed that it was a result of the general economic conditions that have closed so man shops in the past year or so.
In response we heard directly from the owner, Iraklis Karabassis of the Washington, DC based IK Retail Group who wished to clarify the reasons for the store's closure. IK runs a burgeoning mini-empire of shops and restaurants around the country including boutiques for Max Mara and Piazza Sempione as well as restaurants like Washington power lunch standby Café Milano. Mr. Karabassis wanted to make it clear that the DNA 2050 retail concept was in fact doing just fine, but that it had evolved into a higher priced format than the area around Broadway and 8^th Street was able to support, which is, frankly, not difficult to believe at all. In fact, we suspected that the store might be too pricey for the neighborhood when it first opened. He assures us that the Chicago store is actually doing well and the one that closed was a temporary location. A new unit will be opening later this year at the Arches in Long Island that will reflect the new, revamped concept.
Our thanks to Mr. Karabassis for the clarifications. Excerpts from his communication can be found after the jump.
Previously:
Departures: A Quiet Exit For DNA 2050
DNA2050 Gets Boutique-y in NoHo

Dear Shophound:
 
Since its opening DNA 2050 evolved into a premium denim destination. Unlike the initial concept store in New York, the new store concept is modern, clean, and chic.  The brand mix includes a range of the most fashionable and exclusive denim and apparel lines.  The average price point for denim starts at $160 and goes as high as $600.  As a result, the location on 8^th Street and Broadway showed resistance to pricing.  For what we offered, many other companies offered the same with a lesser quality and price.  Plus the brands are over distributed and saturated.  It was very difficult to maintain a consistent business while being challenged with promotions and markdowns in the nearby shops.  Also the location proved to be more of a walkway between NoHo and SoHo than a shopping destination.

We chose to open only in luxury shopping areas that are in line with the product assortment and pricing that we offer.  Our shop in Bellevue, WA  at The Shoppes at the Bravern as well as the shop at The 900 Shops in Chicago have shown much better results and better customer reaction.  Initially our enthusiasm in Chicago started with our pop up shop on Halsted Street, which was a temporary location prior to opening the new shop at The 900 Shops on Michigan Avenue.  In addition we are scheduled for a new opening mid March 2010 at the Arches in Long Island with the new store décor concept designed by Debra Post, retail interior concept specialist.

Regards,
Iraklis Karabassis
President
IK RETAIL GROUP