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Teen Chain Anchor Blue Repositions With Help From Montag of ‘The Hills’

By Anne Riley-Katz Anchor Blue is collaborating with Heidi Montag, a star of MTV’s reality series “The Hills,” on a new apparel line and ad campaign to help redefine the retail chain.

The goal is to appeal to a slightly older 16-to-21 age demographic to capture young consumers who have more control of their purchasing power and are at an age to make more fashion-forward wardrobe choices.

“The marketing challenge was that the brand had really lost its luster; it’s critical to the business to reestablish the brand,” said chief marketing officer James Shimizu, who joined the Ontario, Calif.-based company five months after chief executive officer Terry Sands took the helm in January 2007. “Demographically, we were a little younger before ? more 14 to 18 ? and that reflected in the merchandise mix and ads. We want to be more of a 16- to 21-year-old brand now, and those few years of difference are like different planets.”

Montag’s Heidiwood line of junior apparel and accessories, which will make its debut for spring, ranges from $10 to $60 and consists of striped dresses, colorful tank tops, signature T-shirts, black shorts, white jean shirts and some bags and jewelry.

Montag, who attended Los Angeles’ Fashion Institute of Design & Merchandising but left before obtaining a degree, said that collaborating on the line was a “learning experience.”

“It was different than when I was in school because now I have a whole team to work with and bounce things off,” she said.

The print, catalogue and online ad campaign featuring Montag will begin April 1 and her line will be in stores by April 15. She also will produce two more collections for Anchor Blue ? the fall Heidiwood line will focus on items such as sweaters and jackets in more subdued hues.

So what makes Montag’s line different from the other celebrity-driven apparel on the racks?

“I don’t think anybody else has their line in a store chain like this,” Montag said. “It’s a good platform to launch.”

Founded in the mid-Seventies as Miller’s Outpost, Anchor Blue Retail Group Inc. was bought in 2004 by Sun Capital Partners Inc., a private equity group that specializes in turning around struggling retailers. Miller’s Outpost was renamed Anchor Blue in 2000 as it sought a foothold in the teen market. The initial brand re-positioning in the late Nineties moved the brand from Baby Boomers to the teen market.
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