Rendering of The Guess Private Merchant Company – Source: The Guess Corporation
Coming soon – a members-only store for the ultra rich
If you have a net worth of at least $250 million, you are eligible to join the new private membership department store chain being launched by The Guess Private Merchant Company (GPMC).
The company plans to launch a total of 40 stores over the next four years, including locations in Atlanta, Beverly Hills, Chicago, Dallas, Dubai, Hong Kong, London, Miami, Moscow, Mumbai and New York.
In addition to an unspecified membership fee, members will need to spend a minimum of $10K annually. Members will be approved by a committee and issued a platinum membership card with charging privileges. Membership will be capped at 10,000 worldwide.
Upon entering a store, members will be greeted by a concierge who will remain with them during their entire visit to make sure their needs are met.
GPMC stores will be housed in seven-story glass buildings that offer a long list of services including “a fine dining restaurant, sushi bar, coffee bar, full-service unisex salon and spa, medical clinic including dental and cosmetic services, private suites for dressing and/or overnight stays with room service, meeting rooms with secure video-conferencing, business center, theater room, photography studio, private dining rooms, fitness center, swimming pool, ballroom, secure vault room with safety deposit boxes and an on-site private bank (through licensed banking provider).”
Each floor will also have merchandise suites staffed with specialists to provide for the needs of members — men, women and children. There will be individual suites for various types of clothing and accessories, cosmetics, footwear, home furnishings, jewelry and watches.
“We are delighted to provide another offering for the ultra-affluent consumer as we continue developing ventures that will meet their demands.”
Members will also gain instant access to another venture, the GP Clubs country club concept. Each four-story club mansion includes business and video-conference centers, meeting rooms, a medical clinic, salon and sleeping suites in addition to a convenience store, dining hall and gas station. The company plans to open about 250 GP Clubs over the next two years. Sites include Arlington, VA, Atlanta, Beverly Hills, Charleston, SC, Greenwich, CT, Nashville and Orlando.
BrainTrust
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Adrian Weidmann
Managing Director, StoreStream Metrics, LLC
Adrian Weidmann
Managing Director, StoreStream Metrics, LLC
Discussion Questions
DISCUSSION QUESTIONS: Do you see membership clubs/subscription services developed for specific demographics or personal interests becoming more prominent in retail over the next five years? What is your reaction to The Guess Private Merchant Company concept?
Let me know when the first one, either store or club, is actually built. I don’t see this concept going anywhere. The ultra rich already have numerous retailers, shopping services and clubs catering to their needs.
It is a market limited by the number of potential customers (1 percent of the world’s population?) and the areas where the wealth is concentrated. It may be fun for those who qualify as members; otherwise, irrelevant.
How will members prove their net worth? Tax returns? Clearly, Donald Trump won’t be eligible.
The GPMC will probably be wildly successful (look at the Starbucks Black Card) but should leave a bad taste in the mouths of those of us whose incomes don’t exceed the GDP of small countries. Expect some backlash.
Agreed, Cathy. The point of higher-echelon cards and clubs are not only to honor VIPs, but to inspire other customers to strive for access. For most people, this mall will never happen. I see this upsetting customers. Not cool, Guess.
This isn’t the ’50s. I don’t see how a department store for the ultra rich is anything but a terrorist target. While I am not one of the people, a recent luxury survey reported many lived in Ohio, Wisconsin and other rural areas. I would venture to say if they wanted to stay over they’d rather be at a Ritz-Carlton than a department store.
I am with Max. Those that qualify don’t need this. They have special access to “clubs” like this and more.
Sounds like a sucker investment aimed at the 99 percent.
This follows the list of the press releases that Guess sent out regarding their intentions in the c-store industry. They included the following:
After this “interesting” list of announcements, one major c-store trade publication indicated that while they would still run the press releases, they would do so with an editorial disclaimer. Since then, there have been no further announcements regarding Guess’s intentions in the convenience retail/petroleum marketing industry.
I believe someone at Guess has been having fun with the trade press regarding the c-store industry and is now doing the same for the club industry.
Plain and simple, not even worth the time on comment on it. It reminded me of a movie title: Dumb and Dumber.
This concept will not fly. Individuals with a net worth greater than $250,000 have people who shop for them. Also, given the shifts in labor markets that are on the horizon with advanced automation, this initiative as I understand it will be too conspicuous. From the 7th floor you’ll hear members yelling, ” … let them eat cake!”
I owned a luxury menswear business for a number of years. In Boston, we coupled it with a members-only private club with stocked bar, billiards ($40,000 pool tables), darts ($25,000 dart boards), entertainment system and completely automated controls. Members loved it, they just have too many other choices for exclusive venues and amenities.
$250 million, not $250,000. Blame the moderator bot 🙂
I just checked to see if today was April 1st.
Frasier and Niles Crane would be pulling every string imaginable to get an invitation. Yes, I have been watching Frasier reruns and that is exactly what came to mind when I read this.
Take it down a few notches where it might be affordable to a few more and they just might have a concept that is sustainable.
For my 2 cents.
This is a poorly thought-out model. The ultra rich don’t go somewhere to shop, they have product brought to them or services shared with them in the comfort of their home. Having very demanding requirements and barriers to demonstrate that you are “über wealthy” does not appear to be realistic. No one likes sharing information about their wealth, let alone having to “prove” your net worth just so that you can shop somewhere. This is a flawed concept and doesn’t even have a real-world example to prove its viability.
Atlanta? Perhaps they know more about the demographics there — actually, they’d BETTER know more (than I) about the demographics there — but that doesn’t seem like a place with enough $250M consumers to support the concept.
But then, is there ANY place with enough such consumers? Not that they don’t exist, but I don’t see this idea as a very compelling proposition for them.
A photographer? A sushi bar? This sound more like a plot for a sitcom than a serious business proposal.
Don’t see that working for the ultra rich … They already access to services by all major luxury brands based on their spending patterns. The country club may work but that’s a whole different business model, and brands are already reaching out to private country clubs to present their offerings.