To receive the Vogue Business newsletter, sign up here.
Mytheresa is opening its newly expanded, 300-square-metre menswear store today in Munich as it looks to seize the growing opportunity in men’s fashion with more space for brands like Loro Piana and Brunello Cucinelli.
These brands “reflect what’s going on in the market”, says chief executive Michael Kliger, as luxury menswear consumers show a growing preference for luxurious basics and design-led styles over ostentatious, logo-heavy fashion. “The original store was very much focused on fashionable brands like Balenciaga, Gucci and Alexander McQueen,” Kliger says. The increased space allows Mytheresa to showcase a wider breadth of brands, he says. “We’re not diminishing the [fashion] brands, but are giving [more timeless luxury] brands a fair share given where we clearly see at the moment a demand pattern.”
Mytheresa entered menswear in January 2020 and opened its dedicated physical store in Munich as well as on its e-commerce site. It has since made efforts to gain a stronger foothold in the menswear space and catch up with competitors, after focusing primarily on womenswear. The category now accounts for 10 per cent of the business, and is growing “nicely” — faster than womenswear — says Kliger.
Mytheresa’s most recent third-quarter sales climbed 17.3 per cent year-on-year to €198.9 million, with an 18 per cent uptick in gross merchandise value to €219.8 million in the period. While the rate of growth is slowing as aspirational shoppers reined in their spending on luxury accessories, Kliger told Vogue Business that its top customer base — high spenders and those with influence in fashion — remains strong, increasing 28.1 per cent year-on-year. Unlike many other online luxury retailers, Mytheresa is consistently profitable.
The store reopening comes at a time when many luxury brands are securing new spaces or upsizing thanks to increased availability and rebased rents in desirable locations. The fortuitous exit of a former tenant meant that Mytheresa could take over the retail space next door, Kliger says. The new store also features updated interiors, such as marbled flooring, soft carpets and wood panelling, as well as a seating area and increased fitting rooms — created by Italian design firm Studio Baciocchi to resemble “an intimate home-like atmosphere”.
In contrast, the previous store had a cooler feel, with dark flooring and an aluminium ceiling. While some of the former fixtures remain, the new additions create a more timeless and superior experience, notes Kliger. The goal is to “really up the experience level”, which can lead consumers to engage longer and potentially drive greater sales, he explains.
But, even with the expansion, Mytheresa’s men’s store is still a fraction of the size of its only other retail store: the 1,000-square-metre womenswear boutique, located 10 metres down the road. The menswear store may be “small” but is a “money making” and “relevant puzzle piece”, says Kliger. While e-commerce still dominates total sales, accounting for 95 per cent of the business, the store allows brands to get a better feel of Mytheresa. Having a physical presence also benefits its internal styling and buying teams, he adds. “It gives an additional data point for how things look and perform.”
As new categories grow in importance, Mytheresa is signalling its status in luxury beyond fashion. In February, it dropped “fashion” from its tagline, which was updated to “the finest edit in luxury”. The focus continues to be on high-end luxury, says Kliger. “It’s visible in the numbers that our top customers are growing much faster than the overall business. The store really demonstrates that Mytheresa is about high-end luxury, not about contemporary. That’s why we have invested in a top-class physical representation of this strategy.”
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
Where to next? Mapping luxury’s retail hotspots in 2023
‘A new playground for luxury’: Flannels rethinks role of flagship store
UK retail is under pressure. This indie store is bucking the trend
