First Look: Crocs goes experiential with new ‘Icon’ store concept
Crocs has unveiled a new store concept that features immersive storytelling and its largest personalization experience to date.
Located in Manhattan’s SoHo neighborhood, the 4,000-sq.-ft. outpost spans an entire city block. It offers the complete core Crocs shoe line and accessories such as bags, backpacks and keychains, along with a dedicated assortment of elevated Crocs EXP products.
Shoppers can personalize their purchases with Crocs’ signature Jibbitz charms (including New York City-exclusive ones), which are featured at two customization counters. The charms can also be purchased at a New York City-styled “bodega” that spotlights higher-end items.
The comfort footwear brand also plans to host special events at the store.
“Our store in SoHo will be the first of our new tier of Icon stores that we’ll be opening in key cities around the world,” the company stated. “The store is designed to be a destination that merges community connection, creativity and commerce within an immersive environment that feels distinctly New York and uniquely Crocs. We aim to bring the most inspiring and elevated brand experience to date – a unique blend of local authenticity, elevated personalization and modular design flexibility.
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(Image credit: Crocs, Inc. and Brian T. Silak) -
(Image credit: Crocs, Inc. and Brian T. Silak) -
(Image credit: Crocs, Inc. and Brian T. Silak) -
(Image credit: Crocs, Inc. and Brian T. Silak) -
(Image credit: Crocs, Inc. and Brian T. Silak)
Retail remains a key aspect of Crocs’ growth strategy.
“Our stores offer consumers the best opportunity to engage with our brand and our full personalization experience,” the company added.
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In an interview with WWD, Crocs brand president Anne Mehlman described the SoHo store as a “test-and-learn” door, with the learnings used to guide future Icon locations, and also how to how best to use the format to create experiential moments with customers.
Mehlman also told WWD that the new concept allows consumers to “physically touch and feel the product, and then have the experience of coming in the store and picking out the Jibbitz [charms] that are unique to them and putting them on their shoes.”
Second Quarter
Crocs opened the flagship shortly before the company reported that its second-quarter total revenue rose 3.4% to $1.15 billion for the period ended June 30. Direct-to-consumer revenues grew $4%; wholesale revenues increased 2.8%.
Crocs reported a quarterly net loss of $492.3 million, or $8.82 per share, compared with net income of $228.9 million, or $3.77 per share, during the same period a year earlier. The loss was driven by a $737 million non-cash impairment charge related to its Heydude brand.
Amid what CEO Andrew Rees on the company’s earnings call called a “concerning” consumer environment, Crocs plans to reduce orders for the second half of the year. It also is pulling back on promotional activity to “protect brand health in the marketplace.”
“We see the U.S. consumer behaving cautiously around discretionary spending,” Crocs told analysts. “They are faced with current and implied future price increases, which we think has the potential to be a further drag on an already choiceful consumer. Against this backdrop, our retail partners are acting more carefully and reducing their open-to-buy dollars in future seasons. The current environment in the second half is concerning, and we see that clearly reflected in retail order books.”
For the third quarter, Crocs expect uncertainty from evolving global trade policy around the consumer. It expects third-quarter revenues to be down 9% to 11%, at currency rates as of Aug. 4.
Crocs imports most of its products from countries that include Vietnam, China, Indonesia and Cambodia, all of which are now under steep import tariffs.
