Echoes of Retail
Marc Ecko branches out with new full-priced apparel and accessories stores.
Susan Fishman

*ecko unltd. plans to open 150 full-priced stores by early 2009.

It’s hard to believe Marc Ecko launched his global apparel business while he was still a high-school student, working from a makeshift design studio in the garage of his parents’ New Jersey home. Starting with just six t-shirts and a can of spray paint, he quickly built a loyal fan base and, in 1993 at the ripe age of 20, founded *ecko unltd. along with Seth Gerszberg and Marci Tapper.

Since then, the company has grown to include 12 separate *ecko unltd. apparel and accessories lines, the contemporary Marc Ecko “Cut & Sew” collection, G-Unit Clothing Company, Zoo York, Avirex Sportswear, Complex magazine (circulation 330,000) and his recently launched video game, “Getting Up: Contents Under Pressure.” Last year alone, Ecko’s full-scale global fashion and lifestyle company reported billings of over $1.2 billion.

Shopping Center Business recently interviewed Effy Zinkin, president of Marc Ecko Enterprises, to discuss just where this expansion has taken the company.

SCB: How many locations do you currently have in development?

Zinkin: We intend to open in excess of 150 full-priced stores between now and early 2009, of which approximately 50 percent will be branded *ecko unltd., 22 percent Marc Ecko Cut & Sew and the remainder split between our Zoo York and Avirex lines. We are looking at a total of 40 stores in 2007, followed by approximately 90 in 2008, and 175 in 2009. In addition, we are looking to add approximately 37 annex stores to our existing 38 locations. This year alone, we will open roughly 40 new locations between *ecko unltd. full-priced stores and outlets, Cut & Sew full-priced stores and Avirex outlets.

SCB: Where will they be located and when will they open?

Zinkin: Our existing and future outlet locations are spread throughout the United States, while our full-priced retail stores will primarily be located in major East and West Coast metropolitan areas, as well as Florida, Texas and Puerto Rico. The first Cut & Sew store opened at Roosevelt Field Mall in May, while the first *ecko unltd. full-priced store will open at the Mall of America in June.

SCB: What types of locations do you target?

*ecko unltd. features 12 apparel and accessory lines including Cut & Sew, which was launched in 2004.

Zinkin: We aggressively seek high-profile mall and street locations throughout the country, based in part on the success of our brands in those areas as well as other key metrics — including demographic studies, competitor analysis, mall performance and financial models. We are focusing primarily on malls that produce in excess of $500 per square foot in sales, located in major metropolitan areas.

SCB: Tell me about your current stores. Where are they located and why did you choose the locations?

Zinkin: The first round of retail locations were selected based on our knowledge of our brands’ performances in certain key markets, as well as the productivity of the malls themselves. We already sell our various lines, including *ecko unltd., Ecko Red, Cut & Sew, Avirex, G-Unit and Zoo York, through over 5,000 retail and specialty stores across the country, generating more than $1.5 billion worldwide retail sales annually. So although the rollout of our own stores can be seen as aggressive, it is done so with a strong grasp on our audience and the markets we are entering.

SCB: Tell us about the current lineup of brands in your portfolio.

Zinkin: Since its creation in 1993, *ecko unltd. brand has expanded to include *ecko unltd. men’s and Eckored women’s apparel, Marc Ecko Formalwear, *ecko unltd. and Eckored Kids, outerwear, footwear, watches, eyewear, underwear, belts, bags, hats, small leather goods, formalwear and more. Marc Ecko “Cut & Sew” is a contemporary menswear line launched in fall 2004 consisting of casual and dress separates that blend the street-inspired, edginess of *ecko unltd. with more sophisticated designs and fabrics. The line includes semi-tailored separates; sweaters; urban, spa-inspired active wear; woven shirts and premium denim.

The G-Unit Clothing Company is an independent venture operated by *ecko unltd. and multi-platinum selling artist 50 Cent. The G-Unit line is comprised of denim, tees, fleece, outerwear, hats and athletic-inspired sportswear that include men’s, women’s, boys’, and girls’ clothing. Launched in 1993 and part of MEE since 2001, Zoo York is the East Coast’s largest action sports company, featuring skateboards and skater-influenced clothing and accessories.

In September 2004, Marc Ecko Enterprises signed an exclusive U.S. and Canadian licensing agreement with Avirex Ltd. to introduce a new Avirex-branded sportswear collection. Debuting spring 2007, the new line will feature a full collection of apparel, including fashion denim, tees, knits and outerwear.

SCB: Describe the interior of the stores. What are your design goals?

Zinkin: It’s all about the retail experience…making sure that the consumer is engaged by the brand as soon as he or she walks through the front door. Locations will vary aesthetically depending on the brand that they represent. Cut & Sew, for example, will be a little more sophisticated than the street edginess of *ecko unltd, while Avirex will play off of the brand’s rich aviation heritage. As for square footage, we are looking at 4,000 square feet and a minimum frontage of 35 feet for *ecko unltd., and approximately 2,500 square feet with a minimum frontage of 25 feet for Cut & Sew.

 SCB: Who is your target audience?

Zinkin: It really depends on the brand. For example, our flagship young men’s line, *ecko unltd., skews more toward the 14- to 24-year-old male. Our contemporary menswear line, Cut & Sew, however, is geared toward the 21- to 35-year-old customer.

SCB: Who are your competitors and how do you plan to compete?

Zinkin: For *ecko unltd., even though we do not consider them direct competitors, we are looking to be positioned in locations near Hollister, Abercrombie & Fitch, American Eagle and Aeropostale. With Cut & Sew, we would look at Metropark, Armani Exchange, Guess and Lucky Brand.

SCB: What sets your stores apart from other apparel retailers?

Zinkin: Again, it’s about creating the ultimate brand experience. We want these stores to be living and breathing extensions of Marc Ecko and the various brands under his direction. From the product selections and merchandising to the multimedia displays and staffing, our retail locations will embody the freshest trends in popular culture.

SCB: Why would shopping center owners and landlords want one of your brands for a tenant?

Zinkin: Above all else, our track record in retail. We currently outperform our peers in both the wholesale and outlet markets and, unlike a startup, have immediate name recognition to offer within an environment that speaks to our established customer base. In addition, we are well capitalized and have a strong retail team and executive management team in place to accomplish our aggressive growth strategy among our multiple brands.

SCB: Can you share your sales figures for 2006?

Zinkin: Sales in our existing 38 outlet stores were just under $500 per square foot in 2006, and we are up more than 50 percent comp for the first few months of 2007. This is in addition to our wholesale and international businesses, as well as other non-apparel operations such as video gaming and publishing.

SCB: To what do you attribute the success of *ecko unltd. and your other brands?

Zinkin: Since the establishment of *ecko unltd in 1993, we have remained conscious of the need to remain fresh, positioning ourselves as a barometer of what’s relevant to the ever evolving tastes of today’s young consumer. We are cognizant of the need to develop and mature as a brand, while at the same time staying true to our roots and not alienating our existing core consumer base. Thus we communicate multiple messages to our customer by having a broad range of touch points to our core demographic — apparel, footwear, video games, magazines, Ecko TV, rims, toys, music, sports, etc. This allows us to stay relevant to our customer and allows our customer to grow and mature alongside us.


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