There is a shift happening in the undergarment/shapewear category. Proper fitting lingerie that is meant to be worn underneath clothing is once again de rigueur, instead of the athleisure-oriented “innerwear as outwear” trend that had previously dominated. There are enough lingerie retailers in the market to cater to all types of shoppers, so high-end Class A malls, as well as smaller neighborhood community shopping centers, are all suitable.
Because replenishing undergarments, especially bras, is an activity best done in person to ensure a proper fit, lingerie stores tend to attract in-store foot traffic. Victoria’s Secret, which had once been the darling of the undergarment industry, is now prioritizing online sales over store expansion growth. Many other intimates brands are swooping in to fill empty retail spaces, including foreign retailers that are introducing their products to the U.S. audience. The chains in this category that are gaining expansion momentum include Intimissimi, ThirdLove, Soma, Etam and Savage X Fenty.
Intimissimi expects to open about 20 new stores for the remainder of 2023, followed by about 30 new store openings for 2024. Look for growth to take place in regions where the brand does not yet have a presence, but that do have a growing aspirational luxury shopper segment, especially in the South and the Midwest. Expect metros such as Austin, Dallas, Chicago, Denver, Seattle, Minneapolis, Cincinnati, Raleigh-Durham and Charlotte, N.C., to all be eyed for growth.
Although Intimissimi primarily seeks Class A regional malls and open-air shopping centers, the brand will also consider retail street-front spaces in urban and suburban residential neighborhoods. The ideal square footage should be between 500 and 2,000 s.f., although Intimissimi will consider space up to 4,500 s.f. when co-branding with its sister company, Calzedonia, which sells legwear/swimwear items. Preferred co-tenants include trendy high-traffic retailers such as Sephora, Warby Parker, Louis Vuitton and Marine Layer. Intimissimi, a sustainable Italian retailer that sells undergarments for men and women, is known for its sophisticated and luxurious lingerie, pajamas, bras, panties and knitwear.
The digitally native ThirdLove anticipates opening between 10 and 20 new stores per year over the next two years. With a presence in major metros along both coasts, as well as stores in both Chicago and Scottsdale, Ariz., expect ThirdLove to focus future expansion into growing secondary markets, especially in the South and in the central U.S. Areas eyed for growth include Texas, especially Dallas/Fort Worth, as well as the metros of New Jersey, the Carolinas, Georgia, and potentially Colorado and Idaho.
The ideal square footage requirement for ThirdLove is between 1,100 and 2,000 s.f., and the brand seeks both highly trafficked urban retail street-front sites, as well as Class A open-air shopping centers, lifestyle centers and regional centers in upscale suburban spots. As a brand popular with both Gen Z and millennial-aged women, popular co-tenants include those that appeal to that demographic, such as Francesca’s, H&M and Fabletics. ThirdLove is especially known for its inclusive-sized bras made with proprietary memory foam cups.
Soma, the intimates brand under the Chico’s Folk Art Specialties (FAS) umbrella, anticipates opening between 20 and 30 new stores over the next one to two years. Even though Chico’s FAS has been closing many of its underperforming branded stores, such as Chico’s and White House Black Market, it is making an exception with Soma, which has exceeded sales expectations.
Markets targeted for expansion include states where Soma already has a presence though could see more growth, such as the outlying suburban communities within the metros of Indiana, Wisconsin, Tennessee, New Jersey, Colorado and Louisiana.
Soma looks for space in the 2,000- to 3,000-s.f. range. The retailer is focused on opening new stores in open-air neighborhood lifestyle centers in suburban communities with a household income of $100K, but will still consider enclosed regional mall spaces if the shopping center has vibrant tenants. Preferred co-tenants include daily errand and specialty brands that attract the older millennial and Gen X female shoppers, such as Trader Joe’s, Bath & Body Works and Starbucks. Soma is known for its comfortable yet smooth-supporting bras that cater to women’s fluctuating body types, as well as loungewear, panties and swimwear.
Etam, a popular French lingerie retailer with about 855 stores in 55+ countries, will be opening its very first store in the U.S. in July with a 3,000-s.f. unit in the Dadeland Mall, a regional shopping center in the Miami metro. Etam expects to open two more stores by late 2023, followed by approximately 10 new stores per year over the next two years. Areas scouted for immediate growth include a potential flagship site in Manhattan, as well as stores in the metros of Texas and additional locations in Florida. Further expansion is rumored to take place in the same regions where Etam tested out its shop-in-shop concept at various Nordstrom locations last year, including San Francisco, San Diego, Seattle, Chicago, Phoenix and Washington, D.C.
Expect Etam to seek mid- to higher-end regional malls and open-air centers in both suburban and urban metro destinations that are undergoing a population surge, with such co-tenants as Zara, Lululemon and Nordstrom. Etam is a mid-price range intimates retailer known for its playful, fashionable mix-and-match sets made with stretchy lace. Its U.S. stores will feature fitting rooms equipped with a mobile checkout system.
Savage X Fenty expects to open new stores at a rate of about five new units per year over the next two years. By the end of this year/early next year, new units are expected in Miami, Detroit, Newark, Del., Chicago and St. Louis. The concentrated expansion effort will result in a presence in all sectors of the country, with rumored upcoming cities eyed for growth to include Dallas, Phoenix, Nashville, Tenn., and Charlotte, N.C.
The Savage X Fenty brand has been dabbling in all forms of real estate spaces, from regional indoor mall sites to urban retail street-front units to ground-floor units of mixed-use buildings to upscale open-air centers that are all in the 2,500- to 3,500-s.f. range. Preferred sites should attract a racially diverse mix of customers in the 18- to 35-year-old range, and ideal co-tenants can include other inclusive-body type retailers, such as Torrid, as well as trend-setting apparel brands, such as Madewell. Founded by the singer Rihanna, Savage X Fenty sells underwear, bras, sleepwear and loungewear for all genders and all sizes. By the end of this year, all of its fitting rooms will feature Intel’s FIT:MATCH technology, in which customers can undergo a 30-second scan in order to have particular styles recommended for their unique body shapes.
