Loehmann's debuts new e-commerce site
Loehmann's has unveiled its new e-commerce site just three months after the brick-and-mortar unit closed its doors in February.
The newly revamped online store is now operating at the loehmanns.com Web address. The assortment offers a wide variety of brands across all of the same apparel, accessory, beauty and home categories that were formerly sold in Loehmann's off-price store locations.
The site is focused on highly discounted merchandise from name-brand designers including Hervé Léger, Karl Lagerfeld, L.A.M.B. and Versace Jeans Couture. Links to Loehmann's revamped social media platforms are also prominent on the new website.
The revival of Loehmann's as an e-commerce site is ironic, given that Loehmann's lack of online presence was cited by its executives as a reason for the chain's closure. Loehmann's had been slow to fully develop its digital presence and sell online. But it's not the first defunct retailer to reappear with a Web-only presence. Circuit City stores went dark in January 2009, but returned as a website in May following the sale of assets to Systemax, owner of TigerDirect. Even legendary consumer electronics retailer Crazy Eddie reappears online from time to time, and New York's iconic Nobody Beats the Wiz shuttered stores in 1998, but lives on online after being acquired by Cablevision.
Loehmann's name and intellectual properties — including its customer list — were acquired by hedge fund Esopus Creek Value Series Fund LP in bankruptcy court. The IP assets were acquired for $750,000 and the customer lists for $100,000. Esopus hired brand development firm CAK Entertainment to launch Loehmann's e-commerce website and market the retailer to a younger shopper.
"Research tells us the younger customer shops online," Charles Koppelman, founder CAK Entertainment told Women's Wear Daily. "They want to have a dialogue with brands about what they want to see and what brands they want. We are going to talk to them, helping with the product and brand selection. They will tell us what they want and help us with our buying."
Loehmann's filed for bankruptcy in December after 93 years in business. The last of Loehmann's 39 stores closed their doors for good on Feb. 26, as the chain ultimately succumbed to the same financial woes that shut down fellow discount retailers Daffy's and Filene's Basement.
Discount shoppers abandoned Loehmann's in favor of market leaders T.J. Maxx and Marshalls. According to a 2013 report by market research firm Mintel, 46 percent of discount shoppers said they had visited T.J. Maxx and Marshalls over the last 12 months. Only 2 percent reported visiting a Loehmann's.
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