Clothestime debuts 5-store test of intimate apparel concept - Lingerie Time

Discount Store News, June 6, 1994

ANAHEIM, CALIF. - Clothestime has launched a five-store test of a new retail concept, Lingerie Time, a closeout store that carries national brands of lingerie at 30% to 60% off suggested retail prices.

Four of the five stores are in Clothestime's home base of Orange County, Calif., and the fifth is in Pearl City, Hawaii - one of three markets clothestime entered last year. (The others were New York-New Jersey, which now has 23 stores and Puerto Rico.)

If Lingerie Time takes off, the parent company expects to open five more by the fall, followed by cautious expansion in 1995, said spokeswoman Jane Whaley.

Clothestime is slowing expansion to a net 40 to 45 stores in 1994, which will represent 8% of the year-end unit count of 539. That compares with its normal growth target of 15%. In 1993, it opened a net 82 stores.

Lingerie Time stores are located next to

Clothestime units. But in a fundamental from Clothestime offerings of junior women's apparel, of which 70% is its own private label merchandise, Lingerie Times will offer almost exclusively national brands of intimate apparel: Christian Dior, Lily of France, Maidenform, Warner, Josie/Natori, Bali and Lillyette.

"Unlike the women's junior business, intimate apparel has been traditionally dominated by brand names," said chairman John Ortega II. "We believe our customers will appreciate finding the brand names they have enjoyed wearing over the years at discount prices."

Lingerie Time shops will range in size from 2,0000 sq. ft. to 2,5000 sq. ft, compared to an average of 4,100 sq. ft. for a clothestime unit.

In another major difference, Lingerie Time will target women ages 24 to 45, compared to ages 18 to 3 for Clothestime.

A major factor behind a recent string of steep declines in comp stores sales for Clothestime, culminating in a 23% plunge in April, was a sharp decline in the age of its steep declines in comp store sales for Clothestime had let its offerings get too youth-oriented, too trendy, she said. Women in their late 20s have more disposable income that high school and college age women, Whaley said.

In a move to increase the average customer age back in the 25- to 28-year-old range, Clothestime has made changes in its buying staff and increased its selection of dresses. It also beefed up its offerings of apparel that can be used for either work or play, such as unstructured wool blazers, Whaley said.

Clothestime is also lessening its dependence on its depressed home base of

California, where 45% of its stores are located, by expanding outside the state. In 1993, it opened 83% of its new units outside California, and the trend will continue.

Lingerie Time stores also will differ in decor from adjoining Clothestimes units with a more feminine, more romantic, more neo-classic look, Whaley said.

In ambiance, Lingerie Time is attempting to offer the feel of Victoria's Secret, a mall-based operation, bu9t on a strip mall, closeout basis.

Competitors in of-price lingerie stores tend to be small, regional operators, Whaley said. Lingerie Time ahs the potential to become the first such national chain,s he added.

Counting the five Lingerie Time units, Clothestime now operates 565 stores. Those include about a dozen stores that operate under the name Trend Club in outlet mails because some mall operators refuse to let the claim use the Clothestime name.

For the year ended Jan. 29 1994, Clothestime saw its operating profits fall 18.7% on a 10.3% sales gain.

Operating earnings slipped to $16.3 million from the previous year, while sales increased to $347.6 million from $315.2 million in 1992.

Complete results are not available for the first quarter of 1994, but comp stores fell 9%, Whaley said.

Comp store sales slipped 4% for Christmas of '93, 15% in January and 5%. Comp sales rose 2% in March, followed by the 23% decline in April.