Piercing studio Rowan eyes vacant Claire’s locations as it approaches $100M in sales

“We’ve looked at every lease and every property that they have, and we are certainly interested in a number of their prior doors,” she said. “It enlarges the white space, there’s no question about that. Because in many markets, Claire’s was the only game in town. As they vacate or leave, it creates more opportunity for Rowan.”

The piercing industry shakeup comes at a fortuitous time for Rowan, which has gone from 14 stores in 2022 to more than 100 locations set to be open by the end of the year. Come 2026, Schneider estimates the company will open around 30 more locations, depending on what becomes available.

“We can find ways to be really, really successful in super high-traffic, affluent areas and in less dense areas where the population may be more varied,” she said. “Everyone wants to get pierced, and everyone is looking to be safe, and there’s a demand for what we’re providing.” 

Claire’s filed for Chapter 11 this summer, leaving the potential for as many as 1,100 vacant stores in malls nationwide. But in August, the company’s IP was bought by an affiliate of private equity firm Ames Watson in a $140 million deal that preserves hundreds of locations. Still, court documents show that nearly 300 stores under the Claire’s and Icing banners will close. Claire’s has also temporarily shut down its e-commerce operation.

But the retailer’s exit from hundreds of malls serves as another example of how the challenges faced by legacy retailers can be an opportunity for other, younger competitors. Schneider said she knows there’s demand for more modern players because people who live near a shuttering Claire’s are emailing her to ask if Rowan will open a new location.

“The moment we open in an environment like that, we are extremely busy,” she said. “We have a lot of inbounds from customers asking us to open in their markets.”

The opportunity from vacant locations

Mark Sigal, CEO of real estate business intelligence provider Datex Property Solutions, said that while Claire’s had a history of being a good and timely rent payer, that changed after bankruptcy. And some of what forced the company into struggles was overall macro conditions around malls, he said. “The larger issue for Claire’s is the general trend away from enclosed malls to open-air shopping centers, and more of their legacy is malls,” he said.

Lynn Van Amburgh, svp at commercial real estate firm Weitzman, said malls that wind up with vacancies tend to look for potential tenants that are already national players.

“You say, all right, No. 1: Is there a tenant that can backfill this use and is a like player in the national mall world?” she said. “Similarly, you look at that tenant and go, ‘What is a tenant use that can fit into this space?’ And you’re able to potentially enhance your tenant mix.”

In the case of Claire’s, the 1,000- to 1,200-square-foot stores provide ample opportunity for different mixes.

But service-oriented uses are somewhat in demand. Van Amburgh, who handles leases for a mall in Denton, Texas, where a Claire’s will remain open, said she was glad to see it stay because it helps drive foot traffic and other shopping.

As for which locations Rowan is looking at, Schneider said everything’s on the table. But she said Rowan does prefer “highly visible” locations — like spots in malls or shopping centers where people will be walking by. Word-of-mouth is the company’s biggest traffic generator and acquisition tool, as people are often asking friends and family members for recommendations about piercing.

To help generate trials, some Rowan locations have also partnered with local businesses for pop-up events. And the company’s influencer marketing strategy hinges on tapping creators who specialize in highlighting what’s happening in their city.

Rowan’s medical-first piercing approach

Claire’s, for its part, has pierced over 100 million ears since 1978. But its relevance has waned in recent years, with more players for people to choose from — including independent piercing studios and national chains. Another piercing chain, Studs, has over 30 locations in major metros and recently revamped its brand as it eyes a bigger expansion, focusing on an audience of Gen Zers and millennials looking for needle piercings and unique placements.

Beyond simply taking over leases, Schneider said Rowan is looking to bring a new, modern approach to piercing. It hires registered nurses to work as piercers and, unlike Studs, it pierces children under 13. Piercing can be done by a needle or with a gun-type instrument called a hand-pressurized device that uses the earring itself to pierce. All jewelry is hypoallergenic, whether 14-karat gold, titanium or sterling silver with a 14-karat gold overlay.

This fall, Rowan is rolling out a new training program called a Clinical Piercing Standard across the company to help ensure safety, cleanliness and accuracy in piercing. Piercing lacks a nationwide and industry-wide standard due to county and state health departments having their own rules and regulations. But Schneider said Rowan wants to ensure a unified approach across its stores.

“Our nurses have to spend months training, and sometimes that means the studio isn’t hitting on potential revenue goals as quickly as it might. But it means that the outcome of the customer should be much better,” Schneider said.

Schneider said there’s an opportunity for a brand to make a lifelong customer if it nails the piercing experience.

“We have an opportunity to do something right — because there just aren’t that many days that you remember from being 12 years old  or 8 years old, but I remember everything about the day I got my ears pierced,” she said. “And that’s a really cool, unique opportunity for a business.”