Kim Kardashian and Skims CEO Jens Grede Discuss Retail Strategy at WWD, New Fifth Avenue Flagship Store in New york

Kim Kardashian is closing out 2024 with a major milestone as her brand, Skims, opens its first flagship store in New York City. The new store, located at 647 Fifth Avenue in Midtown Manhattan, occupies an iconic space previously home to Versace for two decades, right next to the Cartier Fifth Avenue Mansion. This prestigious location marks a significant moment in Skims’ retail growth and solidifies the brand’s position as a dominant force in the fashion industry.

The new Skims flagship store spans 6,570 square feet across four floors and includes a VIP showroom, office space for the company’s 175 employees, and retail space. It is the largest of Skims’ six stores and follows the brand’s remarkable $4 billion USD valuation last year. The flagship reflects Skims’ commitment to creating a unique in-store experience that mirrors its successful online presence, offering customers an elevated shopping environment.

In a recent interview with WWD, Kim Kardashian and Skims CEO Jens Grede discussed the brand’s retail strategy, the success of their collaboration with The North Face, and future expansion plans. On the new flagship, Kardashian described its sleek design, stating, “The store has a high gloss finish mixed with monochromatic colors and various textures, with everything embossed with our logos.” This physical store complements the brand’s signature modern and minimalist aesthetic, enhancing the customer experience.

One of Skims’ most recent successes was the collaboration with The North Face, which sold out within five minutes. Grede remarked, “It’s one of our highest waitlisted drops. This shows that Skims has the opportunity to expand into new categories and increase price flexibility. Customers want more from us, not just what we’re offering today.” The North Face collaboration underscores Skims’ ability to explore new markets and product offerings, catering to the growing demand for the brand.

Kardashian also highlighted Skims’ viral marketing strategy, noting how important it is to create buzzworthy campaigns. “We have a marketing group chat where we brainstorm ideas constantly. It’s exciting to come up with campaigns, whether they feature an artist or an athlete,” she shared. She emphasized how internet culture plays a pivotal role in the brand’s success, with fans eagerly awaiting the next campaign and its surprise elements.

On the topic of Skims’ physical store strategy, CEO Jens Grede explained the balance between online and offline sales, saying, “80 percent of our sales come from physical stores, and 80 percent come from online. We want to meet customers where they prefer to shop. We’re still in the early stages of this journey.” He also discussed the brand’s expansion plans, particularly its focus on Europe and the Middle East, where Skims is seeing increased interest.

The topic of Skims’ potential IPO has been a frequent point of speculation. Grede addressed these rumors by stating, “We’ve never discussed going public. I’ve only mentioned that at some point, we may deserve to be a public company. We have institutional investors, and we’ll need to offer them options in the future. However, we’re happy with our long-term investors and our current position. While an IPO could be a consideration later, it’s not something we’re focused on at the moment.”

With its first flagship store on Fifth Avenue and ambitious plans for global expansion, Skims continues its upward trajectory. As Kim Kardashian and Jens Grede drive the brand forward, the buzz surrounding a potential IPO adds an exciting layer to the brand’s future. Skims is poised for continued growth and success, both in retail and online, solidifying its place in the fashion world.