Bob's 'gets real' with Carhartt: regional retailer adds to big-brand strategy

DSN Retailing Today, April 7, 2003 by Emily Scardino

MERIDEN, CONN. -- While the merchandising of high-visibility national brands is most often associated with companies like Kohl's, a handful of regional retailers, including privately held Bob's Stores, have long been champions of the big brand strategy. The latest manifestation of that approach at this 36-unit, Meriden, Conn.-based chain is a recent agreement with work-wear manufacturer Carhartt, which has resulted in the latest addition to Bob's branded stores-within-a-store.

Bob's and Carhartt have a unique program that involves 600- to 1,400-square-foot areas featuring fixturing and lifestyle signage, clearly demarcating branded merchandise on the floor. Company executives at Bob's report that the shops, located in 29 of its 36 greater New England locations, gave the $400 million apparel retailer a "healthy" sales increase since they were opened toward the end of 2002.

"We usually see a 30% to 40% increase when our shops go into our accounts because of the look and integrity it brings to the brand at retail," said Jennifer Schneider, retail merchandising specialist for Carhartt. Though the shops go into Carhartt's specialty accounts, many of which are single-unit retailers and certain chains, including Bob's and Meijers, these shops are not yet at Sears, another Carhartt retailer, where instead standard floor fixturing is used.

Carhartt caters to three consumer segments-farm, ranch and trade/construction. The core audience for the Carhartt brand, founded in 1889, consists of blue-collar working men. Carhartt fits the needs of this lifestyle to a T, and as a result, the assortment at Bob's Stores.

"Bob's is committed to customers who need to work outdoors," Bob's Stores ceo Dave Farrell told DSN Retailing Today.

Like Dickies, Carhartt has found an audience with younger customers as well--hip in that it is anti-fashion and anti-establishment.

"It's a fringe market for us; we don't market to that particular consumer segment--that would be more of a style-conscious consumer--though we obviously welcome those sales," noted Schneider of the incremental customers Carhartt is attracting, influenced by artists choosing to wear Carhartt on MTV.

This dual audience fits in with Bob's focus as well.

"Our assortment reflects a broad selection of everything from basics to hip-hop and skate looks," added Farrell.

Targeting both boomers and youths, the Carhartt brand has become a destination item.

Carhartt again, has very specialized distribution, and is not available at fashion-brand-focused Kohl's. Beyond Sears and Meijers, distribution is limited primarily to farm and fleet specialty stores like Tractor Supply, Gaylan's and independent retailers. The brand can be found at such disparate stores as Work 'N Gear and Dr. Jays, evidencing the polarized audience the brand attracts--both outdoor workers and the smaller portion of Carhartt customers seeking hip urban attire.

Bob's Stores is, in a sense, the anti-fashion version of Kohl's, with brands that appeal on the basis of authenticity rather than aesthetics. With "Get Real" as its slogan, it is obvious that the retailer sees itself as a no-nonsense resource for high-quality merchandise: The incremental fashion customers are a bonus.

"Firstly Bob's is all about real clothes, the type people want to wear because of the quality and value they offer," stressed Farrell.

And, Carhartt is not the only label that customers want to wear that resonates with Bob's corporate brand positioning. The company has also been merchandising other apparel brands in sub-stores or sections, though Carhartt's particular vendor-supplied program remains one of its most extensive in-store shops to date. Columbia is also a key brand, as are Dockers, Levi's and, for Bob's smaller proportion of female customers, Mudd and l.e.i. Sporting goods brands such as Nike and Reebok also pump up assortments with powerful national name recognition.

Bob's Stores, established in 1954, is a Northeast chain with stores in Connecticut, New Hampshire, Massachusetts, New York, New Jersey and Rhode Island. The retailer plans on staying regional, with moderate planned expansion, focusing on selling its dominantly men's wear assortment to the locals who like it.