Photo: Canva
After launching in select soft home categories earlier this year, Banana Republic has introduced BR Home, a whole-home business that encompasses bedroom, living room, and dining room furniture as well as lighting and home décor.
The move represents a further evolution for Banana Republic, known for its khaki chinos and classic knits, into a full lifestyle brand that’s less dependent on apparel.
“At Banana Republic, we are driven by a desire for discovery and self-expression, representing a new way to outfit yourself and your home,” said Sandra Stangl, president and CEO of Banana Republic, which is owned by Gap Inc., in a statement. “We are committed to bringing exceptional quality, timeless design, and versatile styling to our customers as we determine how to best support their lifestyle.”
The BR Home collection is offered on a dedicated website, brhome.com, and will reach select Banana Republic stores by the end of September. Prices range from “$150 for beautiful vases to $195 for washed cotton sheet sets and $1,250 to $3,450 for dining furniture and sofas ranging from $2,650 to $4,950.”
Ralph Lauren, Fendi, and Versace are just a few fashion houses that have developed expansion home collections. Among specialty chains, Anthropologie started out as an apparel store but has been selling home goods and furniture for years. In late August, H&M began selling its furniture and lighting offerings in the U.S. after debuting them in Europe in 2018. In the outdoor space, L.L.Bean and Eddie Bauer have ample home offerings.
The furniture and home category surged during the pandemic’s stay-at-home stage amid a home-improvement boom but has lately slowed as socializing and travel have recovered. The housing market has also slowed as mortgage rates continue near 20-year highs. In the second quarter, sales fell 10.6% at Pottery Barn, 20.8% at West Elm, 3.4% at Wayfair, and 19.4% at RH (formerly Restoration Hardware).
Many home improvement chains and furniture sellers nonetheless remain confident that consumers have a newfound appreciation for their homes post-pandemic.
“Customers love their homes,” said Laura Alber, president and CEO of Williams Sonoma, the parent company of Pottery Barn and West Elm, on a second-quarter analyst call. “Right now is not a time when they’re buying a new one or moving as much, but they’re always thinking about it and thinking about the next project. And easy updates to the home and, you know, life-stage changes and gift-giving around the home are very relevant and as relevant today as they’ve ever been.”
“Home really matters,” agreed Banana Republic’s Stangl in an interview with WWD. “It’s the biggest investment for most people. It’s where you keep your treasures.”
BrainTrust
Liza Amlani
Principal and Founder, Retail Strategy Group
David Spear
VP, Professional Services, Retail, NCR
Cathy Hotka
Principal, Cathy Hotka & Associates
Discussion Questions
Do furniture and home goods make sense for Banana Republic? Is the timing of the launch appropriate given the current conditions in home categories?
Poll
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I think Banana Republic has an opportunity in home, how big it is remains to be seen. The company will need to roll it out more extensively than a handful of stores, some pop-ups, and a website if it wants to make a big splash. The collection looks very good: stylish products made with quality materials and nice craftsmanship. However, price points are very high for a brand with no heritage in home. Some of the items are more expensive than similar products from RH! Again, this necessitates showrooms and customer service centers to build credibility and interest. RH prices with Wayfair like online ordering isn’t going to cut the mustard, not in a market where most of the other premium players have physical spaces.
Completely agree Neil. In addition, the product has a Pottery Barn vibe. If I’m a customer of Pottery Barn is the pull to the Banana Republic home brand going to be strong enough with prices that high or am I going to be just as happy with a similar product from Pottery Barn at a lower price. I am curious how they are going to differentiate themselves and draw customers in.
Customers rate Banana Republic’s quality below Old Navy’s. There is no quality heritage they are bringing to Home Furnishings. Maybe they should sell disposable furniture?
Let’s just say that Banana Republic has as big an opportunity to expand into home as multiple other apparel brands that have already done so. Diversification is the growth engine of retail’s future and that includes category diversification. Category killing is a dangerous business these days and the journey from apparel to home is a safe stretch in the scheme of things.
I was skeptical at first but after visiting the Soho pop-up store on the weekend, I’m inspired! The experience was delightful and the product assortment was STUNNING.
I’m now sure Banana Republic could make a dent in home. But I still feel like they need to fix their own house before rolling out this concept.
Reducing skus and improving fit in womenswear is critical for the brand. The prints are relevant and I can see potential but fixing the root of the problem should be a priory for the brand.
Menswear is a staple for BR and I see growth in this category, especially after visiting the store and getting a peak at the Fall assortment. It’s beautiful.
The infant category is beautiful but I’ve only ever seen it shopped on sale. Price points may need to be revisited. And I’m not sure if this category is even needed.
Shifting into a lifestyle brand could really move the needle for Banana Republic. The brand point of view is clearly defined and this was evident as I walked through the Soho store.
BR Home has ample opportunity to make a splash, but it needs to capitalize on its physical stores to succeed. When shoppers are looking for higher priced items, they want to immerse themselves completely, with touch, feel, and eyeballs doing a 360 scan of the product. An online picture of a cozy couch can look really great (and BR Home’s online pics look awesome!), but there’s no substitute to a brief moment of relaxation on the couch and imagining it were in your living room.
Banana Republic has an aspirational aesthetic that will appeal to many consumers. That said, its appeal is not universal.
I love the way Liza Amlani has expressed it. There is nothing quite like an in-person experience to solidify a point of view, one way or the other. And she pretty clearly had a very positive experience. There was nothing remarkable about the old BR store format. But after visiting a newly designed BR store last Fall I was in love with the overall feeling. Absolutely that whole aesthetic could be translated into the home business. If BR is smart about their positioning, and if they use RH as their umbrella, they could indeed enjoy success in the home business. It may take a couple of years to build it, but other labels have proven that true lifestyle brands can extend into multiple categories.
Lots of apparel retailers have home departments. There’s a huge opportunity here for BR, with new ways to appeal to customers and extend the brand. This could be a significant turning point for the company. I wonder if they’ll take some ideas from the RH experience…
“We are driven by a desire for discovery and self-expression”…the psychobabble is getting pretty thick around here! Just once I would love to read a press release that went something like: “we see opportunities for our brand to sell more than just clothes, with associated higher returns for our stakeholders”.
Now that I am off my irritable chair, I believe this is a winning idea, and assuming they execute well, I predict success for them here.
If it sells, then it makes sense. But it’s a crowded field; and – bluntly – many of us see a reverse-Mias touch on anything GAP is associated with.
Gap has a branding problem. Gap products are now available at Walmart, Sam’s Club, Macy’s, outlet stores selling lower quality products and their mainline stores.
Banana Republic is selling products at Costco and outlet stores with fast fashion quality products, plus mainline stores and now very high end home products. Their outlet stores are now located in shopping centers that are not outlet malls. Maybe they can overcome this branding confusion but having a laser focus on who they are would probably benefit them in the long run.