Hear from CFO Paul Hoffman and President Andy Solomon Live at ICR Conference
Summary
TLDRIn this interview, Andy Solomon (President) and Paul Hoffman (CFO) of Windsor Fashions discuss their careers and Windsor's evolution. They highlight the company's focus on special occasions, offering affordable dresses for events like prom, homecoming, and weddings. With 320 stores across 45 U.S. states and a growing e-commerce presence, Windsor aims to expand further into international markets like Canada and Mexico. The executives also talk about the company's omnichannel approach, social media strategy, and optimism for continued growth despite economic challenges.
Takeaways
- 👔 Windsor Fashions leadership: The interview features Andy Solomon, President, and Paul Hoffman, CFO, discussing their backgrounds and how they came to lead Windsor Fashions.
- 👗 Retail and fashion expertise: Both leaders have extensive experience in retail and fashion, with Solomon moving from New York to California for Windsor and Hoffman previously working with Nordstrom.
- 🎉 Focus on special occasions: Windsor Fashions specializes in providing attire for milestone events such as proms, homecomings, and formal occasions, focusing on women's dress-up needs.
- 📈 Growth and expansion: Windsor has expanded to over 320 stores across 45 states and recently opened its first international stores in Puerto Rico, with plans to expand into Canada and Mexico.
- 🛍️ Omnichannel strategy: The company embraces an omnichannel approach, integrating both e-commerce and physical stores, offering last-minute purchases and cross-channel fulfillment.
- 🏬 Malls are still relevant: Despite the decline of malls, Windsor continues to thrive with profitable stores across different U.S. regions and plans further expansion in malls.
- 💃 Diverse customer base: Windsor caters to a broad demographic, spanning from teens in high school to women in their 30s and 40s, focusing on affordability and style for special occasions.
- 💡 Competitive landscape: Windsor competes with department stores, which have reduced their special occasion sections, positioning Windsor as a go-to destination for year-round event wear.
- 📱 Social media and digital marketing: Windsor heavily relies on platforms like TikTok, Instagram, and influencer marketing to raise brand awareness and attract customers.
- 🔮 Future outlook: Windsor is optimistic about continued growth, focusing on expanding store presence, international growth, and leveraging infrastructure built during the pandemic.
Q & A
What are Andy Solomon and Paul Hoffman's roles at Windsor Fashions?
-Andy Solomon is the president of Windsor Fashions, and Paul Hoffman is the CFO.
How did Andy Solomon and Paul Hoffman enter the fashion industry?
-Andy Solomon has been in the retail and fashion industry since 2010, while Paul Hoffman has over 25 years of experience in retail, wholesale apparel, and fashion.
What is the core focus of Windsor Fashions?
-Windsor Fashions focuses on providing clothing for special occasions and everyday events, especially for women dressing up for significant moments such as prom, homecoming, and formal gatherings.
How has Windsor Fashions evolved since its founding in the 1930s?
-Windsor started as a small business in California and evolved over the years, first under family ownership, and later through private equity investment, leading to significant expansion and infrastructure development.
Who is Windsor Fashions’ target customer?
-Windsor Fashions caters to women aged 15 to 40, covering various life stages and events, including homecoming, college formals, weddings, and other social gatherings.
How many stores does Windsor Fashions currently operate, and where are they located?
-Windsor Fashions has 320 stores across 45 states, with a recent expansion into Puerto Rico and plans to continue growing.
How does Windsor Fashions balance online and in-store sales?
-Windsor Fashions has a robust e-commerce business that works closely with its physical stores through omni-channel technology, allowing customers to browse store inventory online and pick up items in person.
How has the shift in mall popularity affected Windsor Fashions?
-While malls have declined in some areas, Windsor Fashions continues to thrive in mall environments, maintaining profitability and success across various locations, from urban areas like the Bronx to more rural ones like Boise.
What are Windsor Fashions’ future expansion plans?
-Windsor plans to open 25 to 35 stores per year, expand internationally into Canada and Mexico, and continue increasing its brand awareness and store footprint.
How has Windsor Fashions adapted to changes in the economic climate?
-Despite inflation and economic challenges, Windsor Fashions remains optimistic. The demand for milestone events such as prom and weddings continues to drive consistent business.
Outlines
👋 Introduction to Windsor Fashions and the Leadership Team
John from ExecEdge interviews Andy Solomon, President, and Paul Hoffman, CFO of Windsor Fashions. The conversation starts with their professional journeys, highlighting their extensive retail and fashion industry experience. Andy and Paul share how they transitioned into Windsor Fashions, with Andy moving across the country due to the company’s strong culture and Paul bringing his retail experience from companies like Nordstrom and Sole Society. Both express their satisfaction with their roles at Windsor.
👗 Windsor Fashions’ Business Model and Customer Focus
Windsor Fashions is presented as a retailer specializing in dressing customers for various special occasions, from proms and homecomings to everyday events. They cater to events like Valentine's Day and New Year's Eve, as well as casual gatherings. The company has evolved from a small family business into a major retailer with investment from private equity, while maintaining its focus on culture and growth. The high frequency of new dress purchases for different occasions drives strong customer engagement.
📍 Windsor’s Store Footprint and Omni-Channel Approach
Windsor operates 320 stores across 45 states, with plans for further expansion, including Puerto Rico and their first street location in SoHo. The conversation highlights the importance of their omnichannel strategy, including robust e-commerce operations and store integration, like shipping from stores and offering real-time inventory checks. Despite the digital age, Windsor’s in-store experience remains vital for customers, particularly for last-minute purchases and special events, reinforcing the importance of mall-based retail for younger consumers.
🎯 The Role of Malls and Windsor's Continued Success
Windsor discusses how their stores remain profitable across diverse regions in the U.S. despite the changing retail landscape. While malls have evolved, they still attract significant traffic, and Windsor's business model allows for high returns on new store openings. This strategy, along with a low-capital expenditure model, allows Windsor to continuously expand and maintain a strong presence in malls, capitalizing on milestone shopping events for customers.
👩🦰 Understanding Windsor’s Diverse Customer Base
Windsor serves a wide range of customers, primarily women aged 15 to their mid-30s, with diverse ethnic and socioeconomic backgrounds. The company caters to various life stages, from high school events to weddings and other special occasions, providing affordable dresses typically priced between $39 and $89. The focus on milestone events across different regions ensures a steady demand, making Windsor a preferred shopping destination for special occasions.
🏆 Competitors and Windsor’s Market Position
Windsor positions itself as a leader in the special occasions market, previously dominated by department stores. With department stores reducing their focus on event-driven clothing, Windsor has filled the gap by offering a year-round selection of special occasion dresses. Their dual presence in physical stores and online makes them a unique player in the market, capable of catering to last-minute dress needs across the U.S.
🌍 Expansion Plans and Growth Opportunities
Windsor plans to continue expanding its store footprint, with a goal of opening 25 to 35 stores annually. In addition to growing within the U.S., they are exploring international opportunities, with Canada and Mexico being key potential markets. The company sees significant white space for growth in these areas and believes that its successful model can easily be replicated in new regions.
📱 Social Media and Customer Engagement
Social media plays a crucial role in Windsor’s marketing and customer engagement strategy. Platforms like TikTok, Instagram, Facebook, and Snapchat are actively used for both customer acquisition and awareness. Windsor leverages user-generated content, influencer partnerships, and its own content to create a strong online presence that drives both e-commerce sales and foot traffic to physical stores.
📉 Impact of Economic Climate on Windsor Fashions
Despite the challenging economic climate, Windsor remains cautiously optimistic. The company’s focus on milestone events like proms and graduations provides a steady stream of business, as these occasions are essential and not easily skipped. Windsor’s affordable price points may also attract more budget-conscious consumers, ensuring the brand’s resilience in a fluctuating economy.
🚀 Future Outlook for Windsor Fashions
Looking ahead, Windsor is excited about continuing to build on the success of the past few years. The infrastructure and growth strategies established during the pandemic are expected to drive further expansion. The leadership is particularly focused on increasing brand awareness and replicating their U.S. success in international markets like Canada and Mexico, ensuring continued growth in 2023 and beyond.
Mindmap
Keywords
💡Windsor Fashions
💡Omnichannel Retailer
💡Special Occasion Wear
💡Private Equity Investment
💡Mall-Based Retailer
💡E-commerce
💡Milestone Events
💡Affordable Fashion
💡Gen Z
💡Social Media Marketing
Highlights
Windsor Fashions has a long history dating back to the 1930s and has evolved into an omnichannel retailer focused on special occasion and everyday dress-up needs.
Andy Solomon has 25+ years of experience in retail and apparel, and relocated from New York to California to join Windsor, describing it as the best decision he ever made.
Paul Hoffman, CFO of Windsor Fashions, has been in the retail space since 2010, previously working with companies like Nordstrom and Soul Society before joining Windsor three years ago.
Windsor caters to 'rite of passage' events like prom and homecoming, as well as everyday events like dates and brunches, providing dress options for multiple occasions.
The company has grown steadily, currently operating 320 stores across 45 U.S. states and recently expanding to Puerto Rico as their first international venture.
Windsor uses an omnichannel approach, integrating online and physical store experiences, with robust e-commerce options and the ability to ship from stores.
Malls remain an important source of traffic for Windsor, especially among Gen Z customers who prefer in-person shopping for milestone events like prom and graduation.
Despite concerns about the decline of malls, Windsor reports strong profitability across its store locations in diverse regions, from Boise to the Bronx.
Windsor follows a low capex, high-return model for store openings, with new stores typically paying off within one year, fueling their continuous expansion.
Their customer base is diverse in terms of ethnicity, socioeconomic status, and age, ranging from high school students to women in their mid-30s and 40s.
Windsor offers affordable fashion options, with most dresses priced between $39 to $89, appealing to a broad demographic.
Windsor positions itself as a trusted destination for special occasion dresses, where department stores have decreased focus over the years.
Future expansion plans include continued store openings across the U.S., with Canada and Mexico being potential next international markets.
Windsor actively engages in social media marketing across platforms like TikTok, Instagram, Facebook, and Snapchat, leveraging influencer and customer-generated content.
Despite inflation and economic uncertainties, Windsor remains optimistic, expecting consistent demand driven by milestone events like prom and graduation.
Transcripts
hello thank you for watching I'm John
General and editor-in-chief of execedge
I'm here with both Andy Solomon the
president and the CFO Paul Hoffman of
Windsor Fashions gentlemen thanks for
joining me here in Orlando happy to be
here thanks
um so
um I guess I want to hear a little bit
about the two of you um how did you come
to uh you know be the positions you're
in the company you know do you have do
you have a background fashion before
that how do things all come together so
I've been
um in retail wholesale apparel fashion
for now 25 plus years so
um worked at some public companies
worked at
um uh privately held companies uh I
actually spent my whole career in New
York City and then
uh six years ago now this opportunity
for Windsor came up I I lived in New
York opportunity was in California I
moved my whole family wow across the
country for this because the the culture
and the people that worked at the
company was so compelling and it's the
best decision I've ever made about it
all right and I I too have been in
retail uh for uh quite some time
consumer based uh well businesses my
whole career and fashion really since
about 2010. uh I started less
traditional fashion businesses and
Retail than Paul but I was with a
company called fluid look which was
purchased by Nordstrom and then I read a
business called Soul society and I was
lucky enough to join in Windsor about
three years ago all right great so let's
turn the conversation to Windsor then so
Windsor actually has a very long history
from the 1930s
um but tell us about what it's involved
into what it's all about now
um your this is on trend so tell us you
know who your customer is tell us a
little bit about what you're selling
sure Windsor is uh where we're an
omnichannel retailer that focuses on the
dress-up needs for the special occasions
and everyday events of our customers so
um whether it's uh what we call Rite of
Passage events or annual events or
everyday events she comes to us to dress
up for those occasions so prom and
homecoming those are the rite of passage
events Valentine's Day and New Year's
Eve and Halloween are kind of the
calendar events and the everyday events
are I got a hot date on Friday night or
Saturday night or I have a brunch with
with my girlfriend so if she's getting
dressed up for those events that's what
we do and that's the lens we look
through for everything we do in our
business yeah and just to add to that
like the 80 years there's probably three
main phases of the company it's like Mom
and Pop California
you know still focused on special
occasions that went to kind of the
second generation taking over
expanding perfecting the business model
really focused on culture and then
investment from
um uh private uh private Equity coming
in where building infrastructure and
then doing much greater expansion across
the US great and just to help put this
in a um in a lens that I guess a man can
understand you know I had the same
tuxedo I've worn to the same events for
10 years but women don't like to do that
right there no no they don't so for each
of these occasions especially those big
occasions of your life yeah those are
pretty big and important and you know
Mom or Dad will go with her daughter to
buy a dress for homecoming to buy a
dress for prom
um and so each one of those it's a new
dresses one of the things that makes our
business so special is there's extremely
high intents during those times so we're
not trying to convince the marketplace
that we we have the right fashion point
of view when she has an event she knows
she's coming to us for those events and
there's a high purchase today all right
great um so let's talk about uh your
store Footprints um uh you're based out
west but we're um where where are most
of your stores there's there's noon in
New York can talk about that but um tell
us about where you are and so we have
320 stores wow in this year we've been
opening uh uh around 25 35 stores a year
over the last
um
five to seven years uh where I'm 45
States we just opened five sources here
in Puerto Rico so we're our first kind
of Entry internationally
um and we're Mall based and we just um
we just opened up our first Street
location in SoHo on Broadway now
um do you do much online sales as well I
mean I know my wife for instance buys
almost everything she gets on on the
internet she barely goes into store we
do we have a very robust and a very good
e-commerce business but our businesses
work very closely together
um we have a lot of omni-channel
Technology where we can ship from store
our customers can look up store
inventory online and also it's super
important for our business because last
minute is a big part of of what our
customer does so she buys she's going to
a party tonight or she's got a hot date
but she needs to buy a dress an example
of that is New Year's Eve it's a huge
day for us in our business and we had a
huge New Year's Eve day and the day
before New Year's yeah which can't be a
e-commerce purchase I think this has got
to go so the businesses work together I
should say the channels work closely
together and we're very much an
omnichannel yes yeah the malls are still
very much alive and healthy and that you
know the Gen z customer still loves
going and shopping and you know
especially with
the Milestone moments from homecoming
graduation you want to go into the store
you want to try that on you want to see
how you look if you want to see all your
options so
um you know the businesses the business
the channels work really well hand in
hand together yeah I was going to ask
you gentlemen about that so malls I feel
like you know as you mentioned there are
certain malls that still Thrive a lot
but it's not the same as it was 25 years
ago isn't that fairs after that's why
you know you've done something like you
did you did in Manhattan I would say I I
would say they're not the same right but
they still are an enormous source of
traffic okay and
um you know
pretty much every one of our stores is
profitable yeah and
um we really do well Across America in
different environments so whether we're
in Boise Baton Rouge or the Bronx we do
pretty well and
um uh so while there's been lots of talk
about you know the dying of the ball
yeah absolutely been our experience it's
interesting and and you know it
continues to be that way yeah we have a
low capex high return model so opening
up stores for us uh pays back in less
than one year so you know it makes sense
to keep on opening stores would return
is is really high and it adds brand
awareness to Orange conversations as
well makes sense let's talk a little bit
more about your customers so is she um
uh in a certain generation a certain
income bracket or is it there's a pretty
um diverse it actually is quite diverse
it's diverse ethnically it's diverse
social socioeconomically
um and also from an age standpoint
because our customer really starts when
she's kind of 15 for homecoming and it
goes into her mid-30s and 40s so in the
in teams she's in high school she's
buying a homecoming dress into college
Years she's going to winter formal she's
going to all dressing up for the
occasions of college post College she's
going clubbing she's going uh she's got
her friends start to get married and
it's all the guest of the wedding and
all the different parties associated
with the whole wedding business we do
very well in and so we kind of span
across these different ages and as I
said we do well in different markets
because these occasions
um happen in all these markets and we
definitely are an affordable choice we
are very affordable you know a typical
dress can be anywhere from you know 39
to 89 so very affordable Choice gotcha
so um who makes the competitive
landscape like out there who what are
the other choices for someone who's
looking for address the last minute
especially so so the way we view it is
traditionally special occasion event
business has been a department store
business yeah and uh the department
stores quite frankly have spent less
effort and put less square footage
against special occasions over the years
as their business has changed and as our
business has grown and we've grown this
footprint to 320 stores Windsor has now
been the place that 12 months a year we
have product dedicated to this and so
she knows she can come to us where the
department stores don't have it 12
months a year and so that's really been
the biggest piece and there's other
competitors that play in specific places
but there's no brand that like us has
both stores and e-commerce to handle
that last minute 12 months a year and
throughout the country markets were
fragmented and we're a trusted
destination now
um tell me about your future plans your
45 States you already have you know
different stores is there's still plenty
of opportunity to add milk yeah we
finished the year 320 stores uh you look
at other mall-based retailers out there
they have 600 to 900 stores where you
plant open 25 to 35 stores a year so
definitely a lot of white space and
Runway still
um on that end you know Puerto Rico
opening up internationally uh our next
step is now Canada I think there's tons
of opportunity on that side of the
border and we think uh there's also a
lot of opportunity down in Mexico there
are smaller opportunities built in there
as well great now um tell me about how
you build awareness is social media part
of that and I imagine some of your
customers take pictures Muses your
special occasions and do they plan you
know your handle does that help you guys
out 100 100 very active on Tick Tock and
Instagram and Facebook and snap and uh
we're very active on all the traditional
digital channels
um and we view that very much both as an
acquisition tool and awareness tools to
drive to the economic site but it's also
an awareness tool very much to draw
awareness of the store so uh very active
with our own produced content as well as
influencer content and our customer
develop content so the combination of
all of that together creates a pretty
nice
um uh uh uh you know group of of content
that we collected great um you know
something I've asked a number of folks
who've interviewed the last couple days
here at icr is um you know how has this
economic climate you know affected you
guys again I'm thinking perhaps given
the reasonable price point that
inflation and things like that might
actually send people your way so I'm
imagining hasn't been that bad for you
inside tell me what's how it's shaking
out well you know
we're hoping that that happens they send
more people are away
um I would say that we're we're
cautiously optimistic next year what we
you have and what we've seen from our
business is that those Milestone moments
there's every in those annual uh events
those are really strong still No One's
Gonna Miss a problem right no one's
going to miss their graduation yes
people are still going to home so those
built-in eventually
keep us consistent throughout the year
and drive for possible for your stress
all right well we've covered a lot of
ground here gentlemen um I guess I'd
just like to close this off by giving
you a chance to tell me what you're most
excited about for the rest of the year
we're two weeks in here what What's um
what are you fired up about the 2023
well we're really excited because we had
um a great last couple of years and
we've built a lot of infrastructure and
use this time to learn during covid and
it has paid dividends for us in 21 and
22 and now we think that this growth
that we've talked about both for our
brand increasing the footprints and into
an international will really lead to
continued growth and strong performance
yeah continuing to double down on what
we do best we have a niche business
um really focused on occasional
advancing growing our awareness around
there and then taking that and taking
our model that's very successful in the
U.S and doing that in Canada and doing
that a massively all right great
exciting stuff well Paul and Andy this
is Windsor Fashions thank you both for
being here
um signing off here from icr thanks for
joining us thanks very much
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