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Spanx executives say the company, with about $250 million in annual revenue, has been growing steadily and has weathered the storm buffeting its department-store partners. A dreary economy has helped. Lingerie has historically been a recession-proof industry, with shapewear tending to reflect the so-called lipstick effect, in which cash-strapped consumers in hard times are still willing to shell out for small perk-me-ups. IBISWorld reported that lingerie revenue contracted 3.7% and 4.9% in 2008 and 2009, respectively, compared with 7.1% and 7.8% drops in women's clothing overall for those years. "Women get emotional about finally being able to wear things in their closet they've long given up on. And I think that's especially true when economic times are tough," Blakely says. Fashion trends are also working in Spanx's favor. Popular TV shows like Mad Men and Boardwalk Empire, which glamorize the exaggerated silhouettes of earlier decades, have influenced apparelmakers. They are designing contemporary versions of the tight pencil skirts and formfitting dresses that made girdles a fashion necessity the first time around.
Fashion is fickle, though, and Spanx is trying to make the leap to a lifestyle brand, moving into a wide range of products aside from shapewear. The new stores will feature bras, activewear, swimwear and a collection of compression tees, tanks and underwear for men that the company has rolled out over the past 12 years. "The roots of the company have always been about solving problems, not a category of merchandise," says CEO Goldman. Well-trained salespeople will be a crucial piece of that strategy, and the company plans to give them enough free product to make sure that they wear the garments themselves and can tell customers exactly what works and why. Blakely is now a billionaire--not quite the relatable best friend in the ladies' room--so it will be up to her employees to take over that role, with a little show-and-tell when necessary.