Reflections on Retail Exclusives

The continuing importance of retail exclusives involving licensed properties—particularly celebrities and designers—is evident in stores of all types this holiday season. Outside of the entertainment realm, the licensed products most likely to be granted significant space at the front of the store or in other high-traffic areas, or to be featured in a window display or on in-store signage, tend to be those that are limited to a given chain.

This is true at retailers known for their range of direct-to-retail licensing deals, such as Macy’s, which devotes sizable square footage to key licensed exclusives such as Thalia, Martha Stewart, and Jessica Simpson within their respective departments. Similarly, Walmart features its new collection of Pioneer Woman cookware and kitchen gadgets on an endcap and four-foot section in its housewares area, and devotes sizable territory to its ongoing Gold’s Gym brand within the fitness department.

Other chains are highlighting their unique licensed ranges this holiday season as well. Pac Sun is promoting its Kylie and Kendall Jenner label in its front window display, as well as in-store, for example, while Best Buy features large standalone displays in main aisles for each of its exclusive device-case ranges, including Christian Siriano and Kate Spade.

True exclusives such as these, whether accomplished through direct-to-retail licensing or exclusive distribution deals supplied by licensees, seem to be on the upswing. But there are still examples of the very narrow exclusives that have been common over the past several years.

One Barnes & Noble store has a display of device cases, totes, and home office products identified as Vera Bradley for Barnes & Noble, located at the top of an escalator, near the journals and sidelines. But shoppers, unless they are Bradley superfans, may not see much difference between these items and the similar Vera Bradley accessories being given meaningful real estate at retailers such as Hallmark and at the label’s own mall stores.

In certain instances, exclusive products might consist of just a couple of SKUs. Barnes & Noble locations are presenting a whole wall of Elf on the Shelf storybooks and dolls, spin-off formats such as board books, and ancillary products including doll clothing. The display commands an area of greater magnitude than that given to most exclusives. But only a couple of the items are unique to B&N.

Some pairings may not be truly exclusive, but are limited enough to give an aura of exclusivity. Fishs Eddy, a design-driven housewares brand with an online presence and a shop in New York, has a number of unique partnerships. They include Club Cumming, inspired by actor Alan Cumming’s dressing room after-parties during his run in Cabaret on Broadway; I Like You, tied to Amy Sedaris’ comedic book on entertaining, published by Hachette; and Charlie Harper + Todd Oldham, a collaboration between retro-styled illustrator Harper and fashion designer Oldham. Each of these collections is prominently featured in the New York store and online, but some are also available through Fishs Eddy’s limited group of high-end retail partners, including Liberty, West Elm, and Nordstrom.

It should be noted that exclusive promotions can have as much play as exclusive merchandise arrays, as H&M’s ubiquitous Katy Perry signage in and outside of its stores demonstrates. The singer stars in the retailer’s holiday TV and print advertising, but the partnership does not include any signature merchandise.

For more observations on licensing at retail this holiday season, see RaugustReports’ December 17 discussion of Star Wars, and check back on December 24 for an analysis of the Maker/DIY trend, in all of its forms.

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