Specialty rules - Cover Sory - stores for teens - Statistical Data Included

DSN Retailing Today, Feb 11, 2002 by Emily Scardio

"About half our mix is private label--Blue Asphalt for denim, Evolution for club-wear, positioned next to national brands," says Steven Cox, senior vice president and general merchandise manager for Wet Seal/Contempo Casuals. 2002 is a push for more merchandise under the Wet Seal label.

The 398-store chain connects with modern teens by participanting in events, including Boarding for Breast Cancer, a charitable gassroots effort.

Gadzooks caters to both sexes, with a heavily branded assortment that includes l.e.i., HotKiss, Playboy and Puma. An in-store video wall showcases brands.

"We loop in a 30-second spot on their half-hour video, as well as advertising in print nationally," says Dana Sheill, licensing director for Dollhouse, one of Gadzooks' suppliers. But despite the marketing bonus of bands, or because of the cost, Gadzooks' director of investor relations Jim Motley says, "Our percentage of privately label, currently 15 percent to 20 percent, will increase to 25 percent of our assortment for 2002 to give us more flexibility." The percentage of juniors apparel in the mix will rise: young men's was blamed for negative 5.3 percent comps for the 48 weeks ending Jan. 5. Sales increased 10.5 percent to $296 million.

The 427-store retailer doesn't carry private label under the Gadzooks name in its 2,500-square-foot stores, but rather under Eqidemic or Decibel. Motley adds, "It's risky, if a brand goes south--like Old Navy--you're stuck."

THE URBAN YOUTHS: With path looks inspired by their favorite stars, and quaking hip-hop resonating trough their doors, these chains are the newest of the pack. Claire's and PacSun have opened urban niche chains, Mr. Rags and d.e.m.o., respectively. Head-to-head, both stores feature dark, graffiti-strewn walls showcasing high-ticket streetwear brands that include Sean Jean, J. Lo, Mecca and Enyce. These brands target oft-ignored Latino and African American customers.

D.e.m.o. has 101 stores and recorded same store sales up 1.9 percent for the first 11 months of fiscal 2001.

Mr. Rags reports negative mid-single-digit December comps. This could be because the store carries skate merchandise--Mr. Rags is a leading mall-based skateboard retailer--in the back of its stores, behind its dominantly urban mix perhaps leading to consumer confusion.