At the turn of 2005, fashion retailer Reiss was a fairly modest operation. It was a UK-centric company with just 37 stores and had remained loyal to its roots as a British brand that concentrated on clothing of designer quality, without designer price tags.
Skip forward two years and Reiss is a different beast. The retailer has 50 British stores and another 50 worldwide, including concessions, fledgling UK accessories stores and a transactional web site that launched this month. It has been the most aggressive period of growth in the retailer’s 34-year history and founder David Reiss believes that the business is firmly on its way to becoming a strong international brand.
Testament to this will be the opening next month of a£40 million flagship store and head offices on Barrett Street, just off Oxford Street in the former London College of Fashion building behind Selfridges.
The opening will allow Reiss to beef up his operation to cope with the retailer’s next phase of expansion, which includes another 150 international outlets in Europe and beyond and up to 60 standalone accessories stores in the UK. “We are building up the infrastructure of the business, investing money to put the right people in place,” Reiss says. “This has been my main focus this year.”
Growth, particularly in the international arena, may not have been possible had Reiss listened to his critics. “Seven years ago, when I thought about entering the womenswear market, people told me not to do it, but that is now 60 per cent of our business,” he says. “It really allowed us to become a serious international offering.” It has also helped the company grow 30 per cent year on year for the past four years.
Similarly, people told him that New York would be “the toughest market to break”, but that only made Reiss more determined. “I just knew that when we did open there it had to be special,” he says.
Ahead of the US launch in spring 2005, Reiss took some of his creative team on what he calls an “inspirational” trip to Tokyo to think of ideas not only for design, but the business as a whole and its positioning on an international level.
The debut in New York proved a success, recouping the money Reiss invested in just one year. It gave him the confidence to really pursue his international plans and the retailer now boasts eight more US stores, 15 in the United Arab Emirates, 10 across Scandinavia and 15 in Hong Kong and China with franchise partners. Reiss is also in talks to open up to 12 stores in Korea, outlets in Australia and is exploring new areas of Europe.
Success, particularly in the States, has attracted speculative bid interest in the brand. Reiss says: “We were approached last year by a multi-billion dollar company that was keen to open up to 200 Reiss stores across the US, but I just did not see it as the right time.”
Although Reiss is determined to see through his five-year plan, which he hopes will give the company 250 stores worldwide, he would consider selling if someone made him an offer he could not refuse. At 64, Reiss has more drive and energy than many half his age and displays infectious determination.
To take Reiss to the next level, he believes maintaining control of his product is crucial. The worst mistake he made was when he loosened his grip on the reins. “When we launched womenswear, I brought in someone who had a great deal of experience and let them have ownership of the product. It was a total disaster, but I took back control and two years later we had won Fashion Retailer of the Year at the British Style Awards,” he says.
Reiss concedes that trading has been tough this year, but the chain still delivered like-for-like sales growth of about 6 per cent in September. “It is a changing world and you need to keep re-analysing where you fit into the market. Brand awareness is a fundamental part of the growth of any business,” he says.
The Barrett Street store in London’s West End opens next week with 11,500 sq ft of retail space and the retailer’s growing head office will move in next year. Reiss talks with excitement about the opening, and calls it a historic moment for his company.
Overall, his philosophy to retailing is simple. “Try to keep the point of difference and make sure the shops are a beautiful space and then let the clothes do the talking,” he says.
DESIGN FOR LIFE
Age: 64
Career: Took over Reiss after his father died in 1973. Previously, he worked as a fashion agent
Family: Married with three children
Interests: Arsenal fan. Loves all sports and enjoys playing tennis, golf and running
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