Fleece: still basic 'must have.' - discount store sales of sweats; includes related article on sales of fleecewear vs. other sports apparel

Discount Store News, August 6, 1990 by Jill Lettich

Fleece: Still Basic `Must-Have'

America's love affair with fleece lingers on.

Fleecewear has carved itself a unique niche in the apparel marketplace by becoming the must-have basic commodity item in the fashion-conscious sports apparel industry. For now, discounters' major problem is getting enough fleece from their resources to keep their shelves full.

In the current American mindset, sweatshirts are as basic as socks and underwear.

As in most sportswear categories, brand names and fashionable styles are the best sellers. But in practice, fleece acts more like a foundation basic--an easily and often replaced commodity.

This attitude and the huge success of the category in the last few seasons has created some problems in deliveries as demand consistently exceeds supply. In many cases the decision to carry a particular brand has more to do with its availability than its inherent fashion properties.

Relief is coming in various forms. Some manufacturers have announced expansion plans to alleviate the problem. New manufacturers have also entered the realm to capture fleece-starved retailers. And stores order early and carefully to ensure plenty of product, often dealing exclusively with one supplier.

Dean Jarrett, a spokesman for Bassett-Walker, Martinsville, Va., which not surprising is sold out of its Lee brand fleece through the end of the year, calls fleece "recession proof" and claims it is one of the apparel products that is safe from becoming another "closet filler."

"A closet filler is a garment that you can only buy so much of before you can't get anything else into your closet," Jarrett explained. "Fleece, however, is the kind of low-ticket, disposable item that you can always use one more of. It is also at a price point where a 12-year-old can easily afford to buy it for his big brother at Christmas."

Retailers are counting on that and discounters such as Bradlees are expecting "another tremendous season for fleece," according to John Gounaris, general merchandise manager.

The category was important enough to be the subject of extensive meetings between Bradlees executives and various fleece manufacturers in order to consider future fleece merchandising.

"We're looking at our options," Gounaris said. "We want to be in a better position in terms of price, delivery times and fabric weight for fall 1991," he said. Though Gounaris mentioned no specific delivery problems for Bradlees' 130 units, Gounaris did consider it a deciding factor.

Dawson Consumer Products, which markets the J.E. Morgan line of thermal underwear, recently introduced a line of fleece under that label. According to Steve Kornberg, vice president of sales, Dawson is banking on the J.E. Morgan name and on the new company's ability to deliver on-time, quality merchandise.

"The service in fleece has been notorious, and has run about four to six weeks late. We felt there was room for a reliable supplier on the market."

K mart and Rose's seemed to have agreed. Dawson, which has only offered the J.E. Morgan fleecewear line since January 1990, already has programs with both these discounters for fall.

At Bassett-Walker, a division of VF Corp., Jarrett admits there were "rumblings" about deliveries. The firm aggressively addressed those concerns with the announced purchase of a 200,000-square-foot facility in Kinston, N.C., which it will convert to a fabric manufacturing plant. It is only the first phase of a planned $40 million expansion at the company.

Fruit of the Loom, a relatively new player on the fleece market with only four years behind it, also expanded. John Wigodsky, vice president in charge of activewear, said the company is currently "running flat out."

"There is no question the market is tight," he said. "We added enough capacity in the last year to be in pretty good shape for fall orders."

Another unusual aspect of the fleece marketplace is the company or brand exclusivity in some stores, a phenomenon that is growing. Jarrett believes things are definitely moving in that direction.

"One supplier gives a fleece department a cohesive look in terms of quality and color," he noted. "Right now, most retailers may have more than one supplier, because of the delivery concerns of having only one source. In some cases, a retailer may have one supplier for its adult fleece and one for its youth sizes."

At the moment, Bradlees offers a mix of fleece brands, according to Gounaris. He acknowledges the phenomenon, but notes that Bradlees' meetings with fleece makers would determine "how the company will proceed."

"Our shelves are full and our rounders are full, so I have seen no problems with delivery," said David Potter, general merchandise manager at Prange Way, Green Bay, Wis. That seems to be because of Prange Way's selection process. The retailer carries only branded fleece, with no private label brands in its stores. The brand decision, however, usually comes down to delivery and availability, Potter admitted.

If the exclusivity is not in a particular brand, it can be in the private label source. Bassett-Walker, for instance, does JCPenney's Olympic fleece line. Kornberg anticipates about 20 percent of Dawson's total volume will be devoted to private label.