Reviewing Mexx in the Rideau Mall
Company Overview
In the 1970s, fashion designer Rattan Chadha supplied clothes for department and wholesale stores in the Netherlands, which were specifically designed and labelled for the stores.
Name
Revamping his business in 1980, he created two popular clothing brands – “Moustache” for men and “Emanuelle” for women. Both labels had coordinated collections focused on lifestyle and youth fashion. In 1986 the two brand names were merged to form: M (from Moustache) + E (from Emanuelle) + XX (an abbreviation for “kiss kiss” ) to create MEXX.
Over time, Mexx has grown to become an international brand with stores in over 65 countries. It has grown rapidly and is now an internationally prominent company, employing over 6000 people worldwide.
Failure in USA
Mexx entered the U.S. market in September 2003 with a New York City store located on 5th Avenue in a former Liz Claiborne flagship location.At one time, the company had eleven stores in the U.S. The venture did not prove to be successful, and the company closed seven of the stores in 2006 and the remaining four in 2007.
Failing Apart …Get’s Bitch slapped by Zara
Recently, Mexx has struggled to keep up with trendier fashion chains, such as Zara and H&M. n 2006, Mexx only made a profit-margin of $10 million, which could not cover the rent in its established locations. Most of the earnings were made from its former flagship in New York, which ultimately led to its closing the following year.
Ottawa Store Review
There is no doubt Mexx is in trouble and thus they are trying to update themselves as the “Modern European”. With Fashion quotes pasted everywhere on the windows….but does this translate to sales? It is hard to say as I don’t have their financial statements…but here are some issues I have with their “comeback”
1. Your quotes plastered every where (although insightful) scare guys away from the store.
2. Your actual line of clothes have improved from last year, yet over 85% are euro trash and tacky
Prices
1. Original Prices are fair enough with shirts ranging from 30-100, pants 60-100, suits 200-450, tie selection is weak though.
2. Your sales are very good with everything going half off (this is a sign that your inventory costs are high and your regular prices are above the consumers willingness to pay …)
Staff
1. They have found the right balance between never helping you and never leaving you. One of the best in the Mall.
Overall Mark: C
Not only is your business model flawed (50% reductions in prices every three months is not sustainable) but your attempts to modernize scare potential customers….although gems are found …one must dig dig dig.
