Doing the job: new packaging and fresh fixtures are building up workwear sales - workwear clothes category - National Industry Report: Work Wear supplement

Discount Store News, May 15, 1995 by Jeffrey Arlen

Although the flirtation with fashion may have cooled, a refocused basics-oriented workwear category continues on a steady growth line for major suppliers and mass merchants.

While discounters have expanded, upgraded and in general made their sportswear presentations more sophisticated in recent years, their embrace of workwear basics shows an ability to woo their core customers even as they seek to attract new ones. Currently workwear generates about $1 billion annually at the retail level.

Regional discounters, such as Ames, Pamida and Stuarts, to name a few, have positioned workwear as a headquarters category, stocking deeper assortments and giving the category more efficient space on the selling floor.

Meanwhile, Fort Worth, Texas-based Williamson-Dickie, which dominates the core workwear category among the mass merchants, has seen steady growth over the past few years as it continues to roll out its specialized fixturing, called Job Sites, to regional merchants and even hardware stores and home centers.

For Dickies, as well as other suppliers such as Carhartt and Big Ben, expanding into new distribution channels is key in continuing to grow the business. The Army-Navy and farm store independents represent the traditional business for most of the smaller suppliers, but with painter pants and other more specialized items, Big Ben's Red Cap consumer products are pushing into The Home Depot and Ace, while Carhartt, a traditionally higher-price-point fall/winter supplier, is expanding into sporting goods stores and is trying to attract the outdoor enthusiast. All the suppliers emphasize the importance of servicing the customer, with EDI and automatic replenishment essential to growing their businesses.

This category management approach, as opposed to pushing the fashion issue, is currently driving sales pretty much across the board.

Jim McLaughlin, senior vice president of sales and marketing at Dickies, says that his company has "repackaged every line over the last two years, staying away from fashion packaging in favor of utilitarian packaging." McLaughlin adds that forming strategic partnerships with key retailers, working on improving deliveries and servicing the category has been essential for Dickies.

McLaughlin, who admits the company went through a mild "identity crisis" in the late 1980s as it began to get into sportswear and private label, says Dickies is now focused on building up brand recognition while "authenticating Dickies as core workwear for the worker."

The Job Sites, which group Dickies' products in a flexible fixture designed to draw customers into merchant's menswear departments, have increased sales as well. Jon Ragsdale, marketing manager at Dickles, says 400-plus Job Site units have been sent out to retailers, with another 100 due before the end of the year. The Job Sites, says Ragsdale, "allow the customer to more easily find the workwear category and allow more merchandise to be placed in the same space." Such a display strategy has also prompted growth in Dickies" licensed accessories business, including belts, gloves, socks and boots.

Don Delaura, vice president and divisional merchandise manager of menswear for Pamida, says, "The Job Sites, which are in about half of our 184 stores, have been very successful, improving presentation to allow for folded and hanging product. Those elements will be incorporated into future rollouts of our Dickies presentation."

DeLaura, echoing other retailers, says he's been taking "a hard look at our assortment," adding that the emphasis is on narrowing the category and focusing on the core items. Basic merchandise is also driving volume at Stuarts. "The category is trending up, with the core work pant selling particularly well," says Matt Sudhalter, dmm.

Natural fiber merchandise is becoming more important in niche market segments. Barry Simpson, marketing manager for Big Ben's Red Cap consumer line, says that the manufacturer is getting away from the traditional uniform look and emphasizing all-cottons. Although the key distribution remains the traditional farm store, Red Cap is finding its way into Crossroads, The Home Depot's new format for rural markets.

At Carhartt, fashion is a little more of a factor because of the manufacturer's higher price points and urban appeal.

Jason Russell, director of marketing at the Dearborn, Mich.-based supplier, says Carhartt continues to appeal to inner-city kids, but that the emphasis is on expanding the business to the outdoor market. Going beyond the farm stores and small independents, Carhartt, with its traditionally strong fall/winter line of jackets and sets, is looking to attract the outdoor enthusiast. Carhartt is currently selling to sports specialty retailers like Modell's, Jays and Sports Unlimited.

While the swing is away from fashion among the mass merchants, retailers and manufacturers are still expecting some nontraditional workwear items to be strong sellers for summer and fall/winter. For summer, chambrays and short-sleeve coveralls, as well as denim shorts and painter shorts, are expected to complement the core business. Dickies has introduced new fisher- and hickory-striped duck shorts for the current season, as well.