By: Zachary Lichtberg
Lord & Taylor isn’t really going away; it’s just getting smaller. A lot smaller.
Executives have said that its flagship New York City store, which is in the process of closing, will be succeeded by a tiny, 2,400 square foot location in Manhattan.
It will debut, according to Crain’s New York Business, as “a temporary shop, according to a person familiar with the matter who asked not be identified because the plans haven’t yet been announced. This will give Le Tote—the company’s new owner—a chance to re-connect with customers in the middle of the busy holiday shopping season… It will open for two weeks in mid-December in New York’s SoHo district on Wooster Street, surrounded by upscale names like Mansur Gavriel and Diane von Furstenberg.”
Rental startup Le Tote just acquired Lord & Taylor for $100 million this past summer. Lord & Taylor is a department store that was founded in 1826 and has been owned by Hudson’s Bay Company, which also owns Saks Fifth Avenue.
Le Tote said it was taking control of all of the department store’s operations, which include its digital channels and its 38 stores. “Le Tote will extend employment offers to the “vast majority” of Lord & Taylor associates, according to a joint press release about the acquisition. Last fiscal year, Lord & Taylor generated $1.4 billion in sales,” according to fastcompany.com.
“For Le Tote, a seven-year-old company, this acquisition opens up new possibilities when it comes to blending rental technology with traditional retail. For instance, Le Tote might be able to make Lord & Taylor merchandise rentable, or use the retail locations as drop-off points,” fastcompany.com added.
In November, the deal between Le Tote and HBC for Lord & Taylor was officially concluded. “It was reportedly worth 99.5 million Canadian dollars in cash (USD$75 million at the time) and a secured promissory note for $33.2 million payable in cash after two years,” noted pymnts.com. “All of Lord & Taylor’s remaining 45 retail locations will change hands. But the retailer will temporarily have a presence in Manhattan with the launch of a 2,400-square-foot store. It will remain open for two weeks in mid-December in SoHo on Wooster Street. Sources said the move will give Le Tote the opportunity to re-connect with customers during the holiday shopping season.”
Le Tote CEO Rakesh Tondon said Lord & Taylor was a perfect fit for his company. “It was about where our customers were going and what they were asking us to do. They’re telling us they want to buy but they also want to rent, and would love to touch and feel and be able to go into a store and swap out their items or pick up something new,” he told bizjournals.com.
