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Accessory action.


As owner of City of Industry-based belt maker Leegin Creative Leather Products, Jerry Kohl sold to retailers, but never planned to get into that business himself.

But about seven years ago, one of Kohl's retail customers decided to open up a Dallas store called Brighton Brighton, city (1991 pop. 134,581) and district, East Sussex, SE England. The largest and most popular resort in S England, Brighton also has engineering works and factories that manufacture office machinery, machine tools, electrical apparatus, vacuum cleaners, shoes, and paint. Formerly a small fishing village, it became a fashionable resort and was patronized, starting in 1783, by the Prince of Wales (later George IV), who had the Royal Pavilion built. Accessories, named for a Leegin brand. After one year, the store racked up $1.2 million in sales in a 400-square-foot space.

Seeing those results, Kohl started his own Brighton Accessories stores. Today, there are close to 100 stores across the country, and Kohl expects to add 10 to 15 locations this year.

Kohl said he's not looking to put the upcoming Brighton Accessories units in any particular region. In fact, he said the mostly mall-based stores perform pretty much anywhere. He's only had to shutter one store since he began retailing.

"The strategy is to do what feels good," said Kohl. "We have always done terrific."

At Leegin, the Brighton retail division now makes up about 30 percent of the total company revenue, which topped $300 million last year, according to Kohl. And he said that he doesn't see the retail sales slowing down any time soon.

The Brighton Accessories stores have generated what is almost a cult following. Its customers are typically 30-year-old to 70-year-old women who have the disposable income to buy a pricey purse, but are comfortable getting their clothes at J. Jill Group Inc. or Chico's FAS Inc.

"The ladies who buy our things are like groupies," said Kohl. "Every day we pinch ourselves thinking this can't be possible."

At Brighton Accessories locations, the handbags and the jewelry are the most popular items. A Brighton purse costs around $300, while a watch costs in the range of $80 to $100.

Despite Brighton's retailing success, Leegin hasn't given up on selling wholesale. The company supplies 5,000 small retail outlets nationwide and has a sales force of more than 100 to keep its leather goods in the stores.

When Brighton first opened stores, Kohl acknowledged that Leegin's retail customers were concerned Brighton Accessories would draw customers away and sap sales. But he said that the opposite has occurred: Sales have risen for Leegin's retail customers because Brighton Accessories stores have raised awareness of the brand.

And Kohl stresses that Leegin is intent on catering to its retail customers, even taking storeowners to China to show them where Leegin makes its goods. This Friday, about 40 of them will travel to tour Chinese factories where sunglasses, handbags and watches are made.

Staff reporter Rachel Brown can be reached at (323) 549-5225, ext. 224, or at rbrown@labusinessjournal.com.
COPYRIGHT 2006 CBJ, L.P.
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Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Leegin Creative Leather Products Inc.'s Jerry Kohl starts his own Brighton Accessories stores
Comment:Accessory action.(Leegin Creative Leather Products Inc.'s Jerry Kohl starts his own Brighton Accessories stores)
Author:Brown, Rachel
Publication:Los Angeles Business Journal
Geographic Code:1USA
Date:Feb 20, 2006
Words:436
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