Fleece finding the 9-ounce horizon - fleecewear marketing

Discount Store News, July 17, 1995

NATIONWIDE DSN REPORT - If the 5-pocket jean is the coin of the realm in the land of denim, then low-priced, solid-color sweatshirts and sweat pants are currency in fleece. While that isn't likely to change any time soon, the style and value dynamics of the fleece business are in flux.

Price is an issue, for several reasons. Raw-material prices of cotton and polyester have both risen substantially in the past year. Meanwhile, both Fruit of the Loom and Hanes have made it clear they intend to push up wholesale prices, after years of trading thin margins for bigger market share. Countering this pressure, however, is the hangover from the mild fall and winter in '94, which slowed growth in fleece sales.

Thus the bulk of the business is likely to remain at the low-price, low-margin level for most chains. Basic 7-oz. tops or bottoms generally sell from $4 to $10 depending on garment size and local market conditions. Still, consumers have shown a willingness to pay more for better value. Some retailers that have been more aggressive in seeking differentiation have found that customers will trade up in price for heavier weight (usually 9-oz.) fleece garments, especially when the color palette is extended.

Celia Clancy, vp, gmm soft lines at Bradlees, is convinced that cross-shoppers, who typically buy apparel at department stores, are buying into Bradlees' private label fleece program. "Loaded with decoration," items like jog sets, tunics and open hemmed, pocketed pants are perceived, Clancy believes, "as a sportswear choice rather than a sweat item."

That would be in line with industry research that shows consumers are wearing fleece for more kinds of functions. Maria Stefan, executive director of the Sporting Goods Manufacturers Association, said that is one reason some vendors are shipping as many fleece bottoms as fleece tops today

Fleece bottoms are combined with various types of tops, from fleece to thermal knits, for use in walking, running, warm up and all-around casual dressing. Stefan pointed out that much of the bottoms business has remained in lighter-weight fabric to "give people the feel of a short" for fashionable comfort, but longer length.

This is ironic, considering the successful efforts by many retailers to coax customers up to 9-oz. fleece weights for some purchases. At Bradlees, the 9-oz. program is still gaining steadily on the tremendous volume of the opening price point 7-oz. assortment. Clancy said the 9-oz. selection offers "more sophisticated colors," but remains a basic silhouette story. Bradlees uses a mix of weights in its private label program, where decoration is the real cue to consumers seeking added value.

Caldor is showing some limited activewear selections this summer that could presage an extension to private label fleece later in the year. Under its Flying Colors label and featuring cotton spandex fabrication in about eight basic colors, Caldor is offering leggings at $9.99 and turtleneck tops at $10.99, displayed in the active-wear and plus-size areas.

Hills has had success with its men's 9-oz. assortment under the American Spirit house label and plans to test a parallel program in boys' this fall.

At Ames, fleece is kept simple. In the boys' department, for example, 7-oz. basic separates form the core. Rather than present a complete heavy-weight fleece assortment in addition, Ames provides a variety of fashion top selections for boys, said Diane Edwards, dmm, children's.

But the 9-oz. segment is on the upswing. Regional chains like ShopKo and Pamida, committed to fashion differentiation, are devoting more real estate to the heavier-weight fabrication. Pamida, in fact, has left 7-oz. behind for good.

This swing is not lost on vendors. Russell has seen demand for its 9-oz. goods growing faster than other segments, said Mark Tate, vp retail sales for the knit apparel division. This is partly due, he said, to the continuous product improvements - use of NuBlend no-pill fabric and set-in sleeves.

Supplier Basset-Walker has downplayed its 7-oz. offerings, preferring to concentrate on high-quality 9-oz. programs.

Much like the U.S. dollar, basic fleece seems to be a devalued commodity today. Prices are low in relation to value, which is good for consumers. But margins are thin in 7-oz. programs. The twin lure of fashion differentiation and better margins is pulling mass merchants slowly but surely toward the 9-oz. horizon.