Coldwater Creek to Pamper Customers with Spa
By George Anderson
Coldwater Creek says it is in the business of helping its customers “get away from it all” and a new spa concept the retailer is testing should give them one more avenue to do that.
In an interview with DSN Retailing Today, David Gunter, a spokesperson for Coldwater Creek, said, “Our shoppers’ demographics are very similar to those customers that use spas. It was a natural fit for us to move this direction.”
Coldwater Creek targets women between 35 and 60 with an average income of $75,000 with its line of clothing and accessories.
“We see an opportunity to break into this business because as it is right now, the spa business is fragmented. It’s a lot of freestanding stores,” said Mr. Gunter. “But it’s also a highly profitable business – it’s an $11 billion business today.”
The retailer opened its first Coldwater Creek – The Spa on April 5 near Portland, Oregon. It plans to open five additional test units by July in Simi Valley, Calif., Lakewood, Colo., Naperville, Ill., Santa Rosa, Calif. and Southlake, Texas.
Mr. Gunter said the Spa locations are to be located near existing Coldwater Creek stores (the company currently operates 179 with plans to open up to 65 more this year).
“The idea is to drive traffic from one to the other,” he said. “At point-of-purchase, we can book a customer for an appointment right then if there’s an opening, and she can walk right over to the spa. It’s also a chance for us to spread the word to our customers by face-to-face contact.”
Moderator’s Comment: Assuming it is priced competitively, do you think Coldwater Creek is on to something with its
spa concept? What do you see as the opportunities and challenges facing Coldwater Creek as it looks to move into this consumer market? –
George Anderson – Moderator