Hear from CFO Paul Hoffman and President Andy Solomon Live at ICR Conference

Summary

In 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

00:00

👋 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.

05:01

👗 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.

10:02

📍 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.

Keywords

💡Windsor Fashions

Windsor Fashions is a fashion retailer specializing in women's apparel, particularly for special occasions like prom, homecoming, and weddings. In the script, it is described as an omnichannel retailer with 320 stores across the U.S. and a growing online presence. The brand is known for its affordability and diverse range of customers, catering to women from their teens to mid-30s.

💡Omnichannel Retailer

An omnichannel retailer integrates various channels such as physical stores and e-commerce platforms to provide a seamless shopping experience. Windsor Fashions embodies this concept by offering both physical store locations and online shopping, with technology enabling customers to check inventory online and ship from stores. This approach helps cater to last-minute purchases, a key part of Windsor’s business model.

💡Special Occasion Wear

Special occasion wear refers to clothing designed for events like proms, homecomings, weddings, and formal parties. Windsor Fashions is focused on this segment, providing affordable options for these 'rite of passage' events. The script emphasizes that Windsor has become a trusted destination for women seeking dresses for these milestone moments, particularly since department stores have reduced their focus on this category.

💡Private Equity Investment

Private equity investment refers to the capital investment made by firms or individuals in a company to help it grow or expand. In the case of Windsor Fashions, private equity investment played a crucial role in building infrastructure and driving national expansion, allowing the company to grow its footprint to 320 stores and explore international markets.

💡Mall-Based Retailer

A mall-based retailer operates its stores primarily in shopping malls. Windsor Fashions has thrived in this space despite the overall decline of malls in recent decades. The company has found success in different mall environments across America, from large cities like New York to smaller markets such as Boise and Baton Rouge, maintaining profitability even as mall traffic has shifted.

💡E-commerce

E-commerce refers to buying and selling goods and services over the internet. Windsor Fashions has a robust e-commerce platform that complements its physical stores, allowing customers to shop online and access store inventory for last-minute purchases. The integration of e-commerce and in-store shopping is a key part of the company’s omnichannel strategy, allowing them to serve both in-person and online customers effectively.

💡Milestone Events

Milestone events refer to significant moments in a person's life, such as proms, graduations, and weddings. These events are central to Windsor Fashions’ business, as women typically purchase new dresses for each occasion. The script highlights how these events, like prom and homecoming, drive consistent demand for Windsor's products, ensuring profitability throughout the year.

💡Affordable Fashion

Affordable fashion refers to stylish clothing that is priced reasonably, making it accessible to a broad range of consumers. Windsor Fashions prides itself on offering affordable options, with dresses typically ranging from $39 to $89. This affordability is a key factor in their appeal to a diverse customer base, spanning different income levels and age groups.

💡Gen Z

Gen Z refers to the generation born roughly between 1997 and 2012. In the context of Windsor Fashions, Gen Z customers are particularly important, as they are likely to be attending milestone events like homecoming and prom. The script mentions that despite changes in retail, Gen Z still enjoys shopping in malls, especially for these special events, making them a key demographic for Windsor.

💡Social Media Marketing

Social media marketing involves promoting products or services through platforms like Instagram, TikTok, and Facebook. Windsor Fashions actively uses social media both to build brand awareness and to drive sales. The company produces its own content and leverages influencer and customer-generated content to engage with its audience, particularly on platforms popular with its target demographic.

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