Men's wear branded for better sales volume - Discount Industry Annual Report: part 2: Merchandising and Productivity Analysis

Discount Store News, July 16, 1990

Men's Wear Branded for Better Sales Volume

An emphasis on casual looks and the invasion of brands into discount retailing helped propel the men's wear category at the nation's discount stores.

From a fashion perspective, forecasters are quick to report there has been more going on in the men's market than in women's. National brand names and the quality that goes with them were substantially the reason for the huge success. McGregor, Brittania, Wrangler and Bugle Boy are only a few of the names that draw customers into the store. This gradual turnover is attributed to discounters trying to upscale with brand names, as well as the increasing incidence of private label names at the few remaining national department stores.

In addition, the shop-within-a-store concept got a big play in men's wear. McGregor and Brittania each experimented with their own concept departments. McGregor successfully won over retailers such as Jamesway, Pamida and Stuarts with its 600-square-foot shops. Wrangler is in the testing stage with this concept. In addition, Sasson, Gitano, Reed St. James and Lightning Bolt tried varying degrees of their own style shops.

Casual looks, and especially activewear, remains the driving force in the men's market. Golf shirts, sweaters and sweatshirts and pants are the items most readily merchandised at discount retailers. Surprisingly, in what would seem more of a women's wear trend, fashion items were doing better than basics overall.

Fashion jeans incorporating fashion finishes such as acid or stone washes and colorful sweaters are doing better than the average five-pocket jeans. Denim has been weak across the board in all markets. The only basics that continues to do well are underwear and socks. According to a report by Kurt Salmon Associates (KSA), analysts, name brand underwear--Hanes, BVD, Fruit of the Loom, as well as licensed brands--showed a 3 percent sales increase for 1989, second only to activewear.

Even at specialty stores such as S & K and NBO, which are known for their suit selections, display presentations have been designed with a younger, more casual man in mind. In the process, these stores have also upgraded the merchandise.

In general, many discounters have made the men's area more sophisticated. The new look of these stores comes with a higher price tag, however.

NBO introduced a new prototype recently using a brighter color scheme and extensive graphics. NBO claims that its new prototype signaled the store was "upgraded but not upscaled," with price points remaining about the same as in its other stores. However, Valentino and Tommy Hilfiger were among the designer labels that found their way into the store. In general, NBO had trendy merchandise, such as earth-colored shirts, baggier pants and collection-oriented lines featured in new chrome displays.

Ross Stores introduced "Attitudes for Him," its young men's department, in a new prototype introduced last year. Ross' aim to upgrade its men's wear led to further departmentalization. Within the men's area, it featured a "Locker Room," for college and professional team activewear and athletic apparel. In the same area, the retailer also opened a "Leather Shop." This brought higher price points into this store as well. Prices were as high as $225 for a short bomber jacket; $235 for a leather coat.

S & K jumped on the brand express and increased the labels it sold. In 1989 it debuted a "Best Value in America" program, where Deansgate suits and blazers were offered at fixed, "low everyday prices." The firm was successful with this approach, opening 19 stores during the year.

Sears also gave its men's wear department a needed lift. It emphasized national brands with its new prototype. More than 40 percent of the merchandise is devoted to brands. Video monitors were part of the new, glitzier display. The change also meant a readjustment in the merchandising mix. Standard discount brands such as McGregor and Campus were bid adieu. Higher-end brands such as John Weitz and Champion came on board.

According to KSA, discounters capture about 17 percent of the men's wear market as a whole. Discounters hope to increase this number with the better merchandise mixes and better merchandise in general.

An ominous cloud appearing on the horizon is the most recent sales report. The Market Research Corporation of America (MRCA) reported unit sales of men's wear in the first quarter of 1990 dropped 9 percent and dollar sales dropped 12 percent. Predictably, the casual categories--woven sport shirts, sweaters, knit sport shirts, socks, jeans and activewear--were six of the 13 items that did best in men's wear, according to the research firm.