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Shoppers hungry for select retailers

H&M, Barney's, IKEA among the most sought-after stores

Published March 14, 2007 at midnight

Denver's fashionistas no longer have to jet off to Chicago, New York or Los Angeles to satisfy a yen for trendy clothes.

Today, most of what they crave is within driving distance - with a few notable exceptions. Despite Denver's maturity as a retail market, there are still some highly sought-after stores that haven't found a home here.

A handful of names pop up most often in conversations with the fashion-conscious. Top of the list: H&M, Barney's and Zara. Furniture icon IKEA and quirky grocery Trader Joe's also make the most-sought-after lists.

"Those are all the usual suspects," said Nick LeMasters, general manager of Denver's Cherry Creek Shopping Center.

H&M, short for Hennes & Mauritz, has become an affordable fashion name shoppers clamor for. The Stockholm, Sweden-based retailer operates in 23 countries. It launched its first U.S. store on the East Coast in 2000 and now has 118 locations in this country, largely concentrated on the coasts.

But there are no plans for any in Denver or Colorado anytime soon, said spokeswoman Lisa Sandberg.

"Most important to us is homing in on the best markets and the best malls in those markets," she said. "We want the best storefronts, and we'll wait if need be."

With so many new retail projects launching in recent years, though, location isn't always the main sticking point. More often, for H&M and others known for refreshing their inventory daily, easy access to the company's distribution system is also key, she said.

Ikea, which will open a Draper, Utah, store on May 23, tells a similar story. Rumors that Ikea had chosen a Denver-area home have popped up for years.

The popular furniture company builds massive, warehouse-sized stores. The Utah store is a seven-hour drive from Denver, a trek the retailer expects some shoppers will make, said spokesman Joseph Roth.

"We have many customers in Colorado already," he said.

Still, the lineup of planned new U.S. stores - it tends to hold at four or fewer a year - doesn't include Denver, largely because of distribution issues and a lack of proximity to other large markets, he said.

Ikea can service the Draper store from a facility in the Pacific Northwest that services stores in Seattle, Portland, Ore., and some Canadian markets. In contrast, the company doesn't have a distribution center convenient to Denver.

Barney's, owned by Jones Apparel Group Inc., operates three prototypes. Its eight Barney's Flagship stores are at the high end, while 14 Co-ops offer less pricey and more casual clothing, and another 14 outlets are exactly what they sound like.

None have made their way here, and there aren't any plans to do so in the near future, said spokeswoman Dawn Brown.

Which isn't to say they never will.

"The opportunity just hasn't arisen," Brown said, adding that it had more to do with finding the right space and little to do with the company's distribution systems.

"People come to us all the time with different opportunities. We do due diligence on all of them, and sometimes things are perfect and sometimes we just decide it's not the right time."

Upscale apparel retailers are taking a new look at Denver's Cherry Creek Shopping Center, which already boasts Saks, Neiman Marcus and Macy's and is anxiously awaiting the Oct. 19 opening of its long-sought Nordstrom, said general manager LeMasters.

"There's a renewed interest by fashion brands, national and international brands that are saying they need to take another look at the Denver market," he said.

With the imminent departure of Pottery Barn, whose lease is up this month, the center's in talks with at least two as-yet unnamed fashion sellers, including one that would be "new to everyone," LeMasters hinted.

Cherry Creek's Nordstrom will be the third location in this market for the Seattle-based department store chain.

When the first opened 11 years ago at Park Meadows mall in Lone Tree, the retailer was apprehensive despite already boasting 30,000 Coloradans who held Nordstrom credit cards, said the mall's general manager, Pam Schenck.

Both Cherry Creek and Park Meadows always are trying to be first to attract stores that aren't in this market yet - it's a strategy that becomes more urgent as new shopping centers spring up all over the metro area.

Most recently, Park Meadows announced it would open a Sundance store, the first anywhere outside the Utah resort area of the same name founded by Robert Redford.

Even today, LeMasters said, he sometimes encounters similar apprehensions from retailers looking at Denver.

"It's a perception issue - some retailers still have that idea that Denver's a very conservative market that's not ready for a strong fashion point of view," he said.

The store

H and M

Started

1947, Sweden

Headquarters

Sweden; U.S. headquarters in New York

Number of stores

1,300 stores in 24 countries, 118 in the U.S.

Known for

Affordable fashion created by in-house designers, with the selection refreshed almost daily

2006 sales

Not available

The store

IKEA

Started

1943, Sweden

Headquarters

Sweden; U.S. headquarters in Conshohocken, Pa.

Number of stores

250 in 34 countries, 29 in the U.S.

Known for

Warehouse-sized stores full of furniture, housewares and appliances, plus amenities like restaurants designed to keep shoppers hanging around longer

2006 sales

$22.1 billion worldwide, $2.5 billion in the U.S.

The store

Barney's New York

Started

1923, New York

Headquarters

New York, owned by Jones Apparel Group Inc.

Number of stores

8 Flagships, 14 Co-ops, 14 outlets

Known for

Pricey designer fashions for women, men, kids and home

2006 sales

$4.7 billion for Jones Apparel Group, which doesn't break out Barney's sales separately but lists $1.5 billion from its retail division last year

The store

Trader Joe's

Started

As Pronto Markets in 1958, changed name in 1967

Headquarters

Monrovia, Calif.

Number of stores

280 stores in 21 states and the District of Columbia

Known for

Tropical-themed grocery stores, affordable indulgences and private label goodies, including wine

2006 sales

Privately held

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