Ivy Park misses the retail mark
The Future. While the Beyhive is splurging on Renaissance World Tour tickets, they’re not buying Ivy Park merch. Sales for the clothing brand were projected to reach $250 million in 2022 but only hit $40 million, raising questions about its future with Adidas. If one of the world’s most successful artists can sell out of concert tickets but not exclusive drip, it’s possible that fans would rather invest in experiences than material things amid economic uncertainty.
The WSJ examines the growth and decay of Queen B’s streetwear line.
- Beyoncé debuted Ivy Park with Philip Green (the UK retailer who used to own Topshop) in 2016 and bought full brand ownership in 2018.
- Adidas announced its collaboration with Beyoncé in 2019, as it tried to diversify its portfolio with women and replicate its success with Kanye West.
As Adidas expected hundreds of millions of dollars in Ivy Park sales, it promised Beyoncé creative control of the line — and a guaranteed annual fee of around $20 million.
- But Beyoncé and Adidas have clashed over how to label and market the line, with Adidas pushing for more of its own branding, according to sources familiar with the issue.
- This friction might have hurt Ivy Park sales, as almost half the merch didn’t sell in five of the last six releases.
- Ivy Park sales are projected to reach $65 million in 2023 — an improvement from last year but still a major drop from a previous target of $335 million.
So, what happens next? Will Beyoncé set up shop somewhere else? Or will she sunset Ivy Park?