Extinct possibilities - dinosaur-inspired children's clothing and accessories - Special Supplement: AM Apparel Merchandising

Discount Store News, June 21, 1993 by Jill Lettich

Just when you thought they were extinct, dinosaurs are making a roaring comeback at retail. Dino-inspired apparel and accessories have been nipping at the children's wear market, making mincemeat out of many other children's licensed and nonlicensed characters.

Or have they? The demand is certainly real, but mass market retailers are complaining about supply, especially in the apparel area. Discounters are still fighting the battle for merchandise as some of the hottest current licenses aim for the upstairs market.

Jurassic Park, the T. Rex of the dinosaur licensing phenomenon, is helping the dino-resurgence at retail and may bring in as much as $200 million in merchandise sales in 1993. However, specific Jurassic Park merchandise may only be as big as a Velociraptor's nose (see the movie or read the book). There is other dinosaur related merchandise making tracks. The Flintstones! own pet dinosaur, Dino (who will be in next year's movie that's based on the Honeymooners of the stone age); some generic species, including Iguana Don from Snake Creek Manufacturing Co.; and the biggest hit of all, Barney, the purple public television hero, are all working their way into the stores.

It is Barney that is causing the most frustration at discount. Demand for the singing dinosaur is high, but product, at least for now, is in short supply.

Barney, a character that appeals to both genders of youngsters, is so successful that it is being compared to the last big reptile success - the Teenage Mutant Ninja Turtles. But unlike the turtles, mass merchants have not been able to take full advantage of the trend. Despite the popularity among consumers, a dearth of mass market-bound apparel is keeping merchants from maximizing the reptilian rage.

The Barney phenomenon is a licensing anomaly. Before signing licensees for its character, The Lyons Group, which administers the license, got a commitment from JCPenney, which announced the creation of The Barney Spot boutiques in its stores. "Although our sales division had previously been selling Barney plush, video, posters and coloring books, there were no licenses prior to the JCPenney commitment," says Cecilia Anzaldua, director of licensing, Lyons Group.

From October to December of 1992, JCPenney was the exclusive marketer of the licensed Barney merchandise. Although distribution of the licensed goods was expanded, it was limited to department stores. Meanwhile, the interest among kids blossomed.

"I've never seen anything like this," reports James Lee, senior vice president, soft lines, Caldor, referring to Barney's popularity. Although Caldor is doing well with Barney accessories, it has little Barney apparel in-store.

"It's very strange; this is the first license that I remember having this problem with," says Christine Bailey, children's dmm, Bradlees. "We are selling the bedding, though, which is doing phenomenally."

Hans Leernick, girls' buyer, Stuarts, Franklin, Mass., has also been doing well with accessories. Its only item of Barney apparel, however, is underwear from Fruit of the Loom.

"Barney has been doing well since Christmas," says Leernick. "Handbags turned quickly, in about three weeks. Underwear is also doing well. We could do three or four times the business if there was more merchandise available."

Even Wal-Mart only had one rounder of Barney T-shirts in many of its stores this spring - the only licensed Barney apparel item currently being sold to discounters. Unfortunately for mass merchandisers, that is deliberate strategy for the Lyons Group.

"We are being very cautious about what categories we license out. It is true that much of the apparel in the stores is directed to upstairs retailers," notes Beth Ryan, a spokesperson for the Lyons Group. "It was the area we felt most uncomfortable with and we know there's a learning curve we have to follow. Once we're happy with the apparel upstairs, we'll start directing programs to the mass market."

Ryan says the company wants to build Barney into a long term property. "We do get pressure from the mass merchants because they know they could sell more merchandise. But we don't want to flood the market, we want to build it slowly," she says.

There is little immediate comfort in that statement for retailers. Leernick, for one, has seen many licenses come and go. "I want a license when it's hot, not two years later," he says.

Aside from the one screen printed T-shirt from Lyons, however, there are no specific timetables for bringing in more apparel to discounters.

There are about 30 Barney licensees covering apparel, domestics and toys. The list of Barney licenses made available by Lyons specifies which companies may sell to the mass market. Virtually every product category except apparel is being sold to mass merchandisers. Only Fruit of the Loom (underwear) and Trademark Apparel Group (T-shirts) are selling clothing items to discounters.

"We bought what we could at the prices we could afford," says Leernick about the prospects for back-to-school and holiday, given the limited merchandise flow.