It’s been just over 10 years since actress-turned-CEO Gwyneth Paltrow sent out her first Goop newsletter from a kitchen table in London. Since, Goop has evolved from merely an email to a complete lifestyle brand (worth $250 million) with a content arm, a beauty product line, a live events business, a podcast and a growing physical retail presence — on Nov. 1, the company will open its first permanent New York location called Goop Lab, located on Bond Street in NYC’s NoHo neighborhood.
The store, which is the company’s second full-fledged location, follows the September 2017 opening of Goop Lab in Brentwood, California, and was largely informed by the brand’s successful pop-up strategy. Goop has been opening temporary stores since 2014 — in 2018, the company increased its retail experimentation with six pop-ups, including stores in Dallas, Aspen and Sag Harbor, and its first-ever pop-up in London last month. Goop does not break out stores in its overall retail sales, but commerce, both online and in-store, makes up 50 percent of its business — advertising and brand partner dollars drive the other 50 percent. Last year, Goop tripled its year-over-year revenue, and in 2018, revenue is expected to double.
New York has always been a priority for Goop, said chief revenue officer Kim Kreuzberger, who explained that the New York metro region represents 12 percent of Goop’s online sales, beating out its home of Los Angeles and also San Francisco. “Our strategy has always been about opening a small number of stores where we have the deepest penetration,” she said. The New York area has been proof of that, according to Kreuzberger, who noted that since 2015, Goop has tested four pop-up locations in surrounding markets. Its December 2017 gift pop-up in NYC performed two times better than its other two other pop-up locations at the time (in Lido Marina Village in Newport Beach, California, and Miami) combined. And its seasonal summer pop-up in Sag Harbor exceeded its original plan by more than 56 percent. The brand extended the life of the store in length due to its success — it was open well past Labor Day and closed less than two weeks ago.
While Goop’s pop-up spaces are underwritten and secured by corporate sponsors like Cadillac and Prada, making all sales a 100 percent profit opportunity, Goop Lab New York follows a traditional retail model. Still, hopes are high for the location: Kreuzberger said that in 2017, 43 percent of retail sales came from the LA area, thanks largely to the Brentwood store. (Pop-ups are also taken into account in this figure.) “Even though our pop-ups are wildly successful, having that brick-and-mortar placement in Brentwood makes it a top door for us and is driving continued success and sales,” she said.
The New York store is also a chance for Goop to shift its merchandising and event strategy to be more localized. Fashion will be an important piece of business, representing 56 percent of the assortment — Goop’s own G. Label collection will be front and center, and brands like Victoria Beckham, Acne, Rochas and Brock Collection will be featured. Kreuzberger said, naturally — compared to the West Coast store — the store will focus more on seasonality in New York and will sell items at higher price points.
Along with ready-to-wear, the new store will feature a bigger lineup of jewelry. Goop is testing a larger merchandising assortment and display — a direct learning from its Brentwood location, as 20 percent of retail sales came from the jewelry category. Kreuzberger thought a larger space and assortment could be played forward. Designer Sidney Garber, known for her fine jewelry bracelets that start at $8,600, will be an exclusive brand to Goop Lab New York, as will Spinelli Killcolin rings and a selection of Jennifer Meyer tennis necklaces. This is in line with the spending habits of Goop’s average customer, who has an average household income of over $100,000. “There is less resistance in price in New York,” said Kreuzberger.
Beauty and wellness is another large component in the store, making up 36 percent of the merchandising lineup. An experiential programming component will be important in this category: Guests can sample Goop’s ingestible products like the Goopglow Morning Skin Superpowder and Goopgenes collagen mix, and can take part in a Beauty Master Class with Goop’s executive beauty editor, Jean Godfrey-June, in partnership with almond company Blue Diamond. Kreuzberger said the Brentwoood location is hosting two events a week, and similar programming will be adapted in New York to serve the “micro-community” here.
This is just the beginning for Goop, as it is going deeper in all areas of physical retail — the brand is doubling the number of pop-ups in 2019 to 12 (in both new and existing markets), and Kreuzberger said the company will open a permanent London location in about 18 months. “No matter what we may all be reading about the current retail climate, it continues to do well for Goop and will be a big area of growth for us going forward,” she said.
