From Inc · · 1m 30s
Erewhon Expands to NYC: Biggest Risk Is $20 Smoothie
Erewhon may open a New York City location but faces competition from existing grocers.
In brief
Erewhon may open a New York City location but faces competition from existing grocers. Erewhon plans a New York City store but risks becoming another expensive grocery store in a market already saturated with options. Originally reported by Inc.
Erewhon NYC Expansion
Erewhon may expand its retail footprint to New York City with a partnership involving Kith.
Kith Ivy Location
Kith CEO Ronnie Fieg opened Erewhon’s first East Coast location inside his private members’ club, Kith Ivy, last year.
Tonic Bar Format
Erewhon’s Kith Ivy location is a drinks-only outpost called a "tonic bar" for club members only.
Membership Requirements
Club members pay a $45,000 initiation fee and $10,000 annual dues to access the tonic bar.
Delivery Options
Nonmembers can order drinks through Postmates and Uber Eats within a one-mile radius of Manhattan.
L.A. Wellness Identity
Erewhon’s appeal in Los Angeles is tied to the city’s wellness culture and status associated with being seen there.
New York Challenge
Erewhon must become part of customers’ daily routines in New York City or risk becoming just another expensive grocery store.
Market Gap
The gap between Los Angeles and New York City’s status codes is at the heart of Erewhon’s challenge in expanding.
Expert Insight
A consumer behavior scholar says Erewhon sells an L.A. identity of wellness as lifestyle but New York has different status codes.
What to remember
Erewhon plans a New York City store but risks becoming another expensive grocery store in a market already saturated with options.
