Kate Hudson, Rihanna, Sarah Jessica Parker, Drake, Gwyneth Paltrow, Pharrell and Reese Witherspoon are not only celebrities and entertainers, they've got stores. And companies backed by stars like them are leasing more retail space.
Celebrity brands have opened over 300,000 square feet of space in the United States in the past decade, and "based on current trends" that amount will continue to grow, according to a report issued Thursday by the brokerage JLL.
The explosion of social media use — and the public's fascination with actors, singers, athletes and influencers — has helped drive the increase in retail endeavors by such stars, according to "The Rise of Celebrity Retail: The Impact of Star Power on Retail Real Estate," the 35-page study from the Chicago-based firm.
"It didn’t take long for celebrities to realize the massive marketing potential that an out-sized online presence provides; celebrities who have started retail brands account for a combined 7 billion followers on Instagram alone," according to the JLL report.
It added that "nearly 60% of all celebrity retail brands were founded in the last six years. This growth coincides with the disruption of e-commerce in retail. The Census Department estimates that e-commerce’s share of total retail sales has grown by about 5 percentage points in the same time."
The study tracked and mapped the path of celebrity-affiliated retail brands, from just being sold online to rolling out physical stores. It didn't address the success rate or longevity of these brands and their physical outlets.
"For this report, we explored retail brands founded, owned and operated by celebrities, with a particular focus on the role of brick-and-mortar retail in their growth strategies," JLL said. "Through our research, we were able to identify distinct stages of what we have termed the 'life cycle' of celebrity retail brands."
Not all celebrity-backed retail ventures have been successful.
“The Real Housewives of Beverly Hills” star Kyle Richards closed boutiques, named Alene Two, she had in Beverly Hills, California, and New York in 2018 after a little more than a year. Fashion maven Kim Kardashian and her famous sisters once operated Dash apparel-and-accessory stores in New York, Miami and Los Angeles, which are now shuttered. Now Kardashian plans to open the first brick-and-mortar stores for her Skims shapewear brand in Los Angeles and New York next year, she told The New York Times. And pop singers Miley Cyrus and Beyoncé both had clothing lines that fizzled out about a decade ago, though they didn’t launch any physical locations.
Various Chains
Actress Hudson leads the pack in terms of celebrity-affiliated brick-and-mortar locations, according to JLL. There are 95 of her Fabletics stores, which sell active and leisure wear, with the first debuting in Bridgewater, New Jersey. October's Own, affiliated with the singer Drake, has 11 stores, while "Sex and the City" actress Parker has six SJP Collection shoe stores. Paltrow has five Goop stores; Witherspoon has three Draper James apparel stores, with a flagship in Nashville, Tennessee; and singer Pharrell has four Billionaire Boys Club locations. Stores range in size from 1,000 to 6,000 square feet.
There are now nearly a half-dozen Savage x Fenty stores selling the lingerie line created by singer and beauty-and-fashion entrepreneur Rihanna, whose full name is Robyn Rihanna Fenty.
JLL, noting that Savage x Fenty "made waves for its inclusivity in size range," added that "the brand is on track to open five new stores this year, bringing its total store count to 11."
It’s not uncommon "for brands to collaborate with a retail incubator to aid in their store rollout: Fabletics and Rihanna’s Savage x Fenty have both partnered with TechStyle to help debut physical locations," according to JLL.
More celebrity brands, or 76%, have opened in malls than in any other retail property type, a boost to that retail sector, JLL said.
"Similar to their digitally native predecessors, these brands have overwhelmingly gravitated towards malls when choosing a physical location, with three-fourths (76%) of brands operating stores in shopping centers versus other retail types," according to JLL. "Most brands opt for a mixture of mall and street retail, in addition to some hospitality locations in the form of Las Vegas casinos ... The brands that make it to this stage of the life cycle belong to an exclusive club: Just over 11% of celebrity brands that have existed have opened brick-and-mortar stores."
Embracing brick-and-mortar is "a way to increase brand awareness and gain new customers," according to JLL.
The stages of celebrity retail, JLL said, are: developing a brand online that is sold directly to their fan bases; partnering with established retailers to sell products in their stores; testing the appetite for standalone stores by opening pop-ups; and then opening their own permanent brick-and-mortar stores.
"Celebrity brands were most likely to pick New York for a first pop-up store, while Los Angeles was the most popular choice for a first permanent brick-and-mortar store," according to JLL.
Its report found that while beauty is the most popular category for celebrity retail brands, the vast majority, or 82%, of the brands that eventually open permanent physical locations sell apparel.
"Actors and musicians are the most common categories of celebrity to embark on retail ventures," JLL said.