Saks Inc.
(SKS) is shutting down the unprofitable tween-girls chain Club Libby Lu, five years after buying the upstart business and three years after first exploring its potential sale.
The chain, purchased in 2003 for
$12 million
, had 11 stores at the time and has since grown to 78 stand-alone shops and 20 locations within department stores once owned by Saks. Club Libby Lu's closure should be completed in six months.
-- Dow Jones
It appears that princess parties were a leading indicator of a slowing economy. However, it seems that grown-up princesses still represent a growth opportunity: Disney's wedding dress line recently announced plans to produce gowns for brides who wear size 16 and up, and they proudly touted the new "platinum" gown in the Sleeping Beauty line. It would be interesting to see if the Disney Brides business holds up in these times because Disney's perceived as a premium value for the brand.
ETA: Idly speculate and ye shall receive ... check out today's NYT article "Disney Builds a "Lifestyle Brand That Isn't Cartoonish."
Closing chains are never a good sign for the economy, but I have to say that as the mother of two pre-tween girls, I am thrilled to see Libby Lu go. They're not just about princess parties--they do *makeovers* on little girls--with hair, makeup, nail polish, feather boas, and high heels.
There's a Libby Lu in the nearby mall, and I'm always horrified when I see the little girls (usually 6 and under) walking around all tarted up with too much blush and eye shadow, carrying their Libby Lu gift bags. It's sickening.
Posted by: Julie | 2008.11.05 at 15:29
As one who has railed long and hard about Libby Lu before, I am glad to see it go. What seems so high on the Duh Factor to me is that, if you invest heavily in a tween-trend high-concept business, knowing that tweens and teens are fickle, and that you have no way to respond to shifts in trend, shouldn't you also have a fast exit strategy? Or a plan for rapid diversification? Something?
If I owned anything that relied on teen/tween trend, I would run it just like a nightclub: build it, and sell it when it is super-hot, and then go on to the next big thing. You can't get ten good years out of a high-concept youth venture. I guess the considerations are different when there are brick-and-mortar stores to reckon with.
Maybe they could have developed the brand into a tween destination with ever-changing themes? I don't know.
I would guess the Disney princess-bride gown bit is going to go hand-in-hand with the success of its destination weddings business.
Posted by: Tracy | 2008.11.05 at 15:31
We call them "Club Pretty Baby". Not sorry to see them go.
Posted by: Julia | 2008.11.05 at 18:42
"Club Pretty Baby" is hilarious and so clever.
Posted by: Tracy | 2008.11.08 at 06:29
It is fun to go there, if ou can afford $18 per kid for a party, then oh go to mcdonalds after or rainforest cafe afterwards(woodfield mall,il)
Posted by: mommyof3 | 2008.11.30 at 14:58