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Intermix Makes a Play to Woo Wealthy Suburbanites

It's been a year since Gap, Inc. acquired Intermix. Here's what the retailer has been doing with its new resources.
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Intermix's expansion under Gap Inc., which acquired the contemporary chain almost exactly one year ago, has not been as buzzy as we expected -- there were rumors of an in-house line, for instance. But the transition has been underway. Mostly, the chain is using its new resources to open new stores in somewhat surprising locales.

Its presence on Smith Street in Brooklyn's Cobble Hill seemed odd to us. But other "secondary markets" in which Intermix has opened locations have done well, according to WWD. Apparently, stores in Marin County, CA, Bellevue, WA, and Greenwich, CT -- all very wealthy and suburban places -- have been particularly successful. "We’re sitting in a great void between department stores and mom-and-pop stores," Intermix CEO Khajak Keledjian told the trade. "We’re expanding into secondary, more suburban cities.”

It makes sense -- Intermix sells pretty inoffensive items with mass appeal that are still high-end. It's not the most innovative or fashion-forward stuff, but it's trendy and safe.

Speaking of high-end, Intermix also plans to ramp up its designer and luxury inventory and elevate store design, while customizing it somewhat to specific locations. Expect inventory to change significantly: The retailer will reportedly eliminate 40 of its brands and bring on 60 new, presumably more expensive ones. And don't expect an in-house line anytime soon: Keledjian says he doesn't want to compete with Intermix's vendors "for the sake of higher margins."

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Overall, it sounds like Intermix won't be changing drastically, only catering more to markets that it already appeals to.