Running with hosiery - Special Supplement: AM

Discount Store News, August 3, 1992 by Maria Corrado

Private label pantyhose is finding a home for itself in the hosiery department, despite the strength of brands.

In fact, there is some evidence that private label merchandise is growing faster than branded, although it appears that the private label spurt is incremental.

Last year, store-brand sheer pantyhose at all retail tiers accounted for 23.8 percent of sales for the category, according to the NPD Group, Port Washington, N.Y., up 3 percent from 1990. Brands grabbed 76.2 percent of pantyhose sales in 1991, while 1990 they took in 79.1 percent.

However, total hosiery sales have increased significantly over the last three years. At discount stores the category generated $833.6 million in sales during 1989. In 1991, hosiery grew to $934.1 million, according to NPD. More sophisticated in-store displays and packaging have in part boosted sales in both areas.

Retailers are continuing to build private label for obvious reasons. "Private label provides margin opportunities and the ability to separate yourself from the competition. Brands provide wide customer identification," says Maxine Clark, executive vice president, Venture, O'Fallon, Mo.

"The private label category is doing well and we are getting better margins," says Karen Lutz-Lento, hosiery buyer, Jamesway, who has taken a strong private label position.

House brand hosiery at the Secaucus, N.J.-based generates almost half of its the category's sales. Its 3-year-old Private Matters brand constitutes 31 percent of sales, while generic hose taken another 15 percent of its private label.

"The customer recognizes my private label as a brand because of how we've positioned it at Jamesway," says Lutz-Lento. It's given prominent placement on the selling floor, and highlighted with in-store signage. In addition, merchants at Jamesway have worked hard to make sure the product stands up to the branded competition.

"It offers a very good value to the consumer over some of the branded merchandise," says Lutz-Lento.

The price ranges from $1.19 for a reinforced toe pair, to $2 for a Lycra blend, to a control top for $2.29.

Other retailers are also refining their private label businesses.

Last fall, Bradlees replaced its existed private hosiery line, Our Own For You, with a new label, Rebecca Lynn. Rebecca Lynn accounts for 26 percent of Bradlees hosiery sales, ranging from 59 cents for knee highs to $4.99 for a nurse's white pantyhose.

Bradlees tests Rebecca Lynn hosiery in its own laboratory to ensure its quality. "Pricing is almost secondary," says Leslie James, divisional merchandise manager, hosiery and intimates, Bradlees. "The quality is No. 1."

The remaining 74 percent of hosiery sales at Bradlees is generated in areas of 11,000 sq. ft., with brands like No Nonsense, Burlington, Underalls and L'eggs.

At Fisher's Big Wheel, New Castle, Pa., private label hosiery appeared almost two years ago after a re-evalution of its vendor structure.

Since Traditional Classics, Fisher's in-house product manufactured by Americal, was introduced in 1990, department sales have increased 17 percent. Currently the line's volume is equal to about half of L'eggs, Fisher's No. 1 seller, and merchants at the store believe it can increase even more.

Product identification also comes from ads in weekly and monthly circulars. Discounters are promoting their own labels. In Fisher's weekly circulars, its private label is advertised separately from its branded counterpart.

"I think customers have come to recognize Traditional Classics as a quality item at a quality price," says Paul Bucciarelli, buyer.

Buciarelli says reworking the color scheme is a major consideration for Fisher. Weaker shades such as taupe will be eliminated. Suntan, off-black and nude are the best selling colors, accounting for 73 percent of the store's hosiery business.

While some discounters would like to increase their private label assortments even more, they're limiting themselves because they know that broad selections of familiar merchandise are demanded by consumers. "The customer needs to see a full hosiery department. There are customers that need national brands and will never change what they buy," says Bradlees' James. "But we're looking to build private label wherever we can."

Brand name competitors, for now, continue to hold the sheer hosiery title. At Jamesway, 54 percent of the hosiery department is made up of brand names like L'eggs, Just My Size and Underalls. Special sizes are addressed by Big Beautiful Women. Fruit of the Loom pantyhose is being added this fall at Jamesway.

Venture's branded hosiery accounts for 53 percent of its mix.

The retailer carries L'eggs, No Nonsense, Brown Sugar and Fruit of the Loom. L'eggs retails from $1.67 to $6.17 for a multi-pack.

Venture expects its hosiery area, which averages 72 linear feet, to grow partially because of new brand emphasis.

That attitude should be of benefit to Ithaca Industries, Inc., which recently came to market with a new licensed line of pantyhose marketed under the Vassarette label.