Fashion dresses up sales at discounters - fashion clothing sales up at discount stores - Discount Store News Annual Discount Industry Report; Part 2: Merchandising and Productivity Analysis

Discount Store News, August 2, 1993

An infusion of fashion helped apparel gain ground in the discount market during 1992.

While jeans and T-shirt apparel basics were still selling, new silhouettes -- long skirts for women, "grunge" plaid shirts for men and an overall trend toward outdoor looks--infused much needed excitement into the apparel department at retail.

In 1992, apparel sales at full-line discounters reached nearly $32 billion, with specialty retailers adding another $11.7 billion to the pot. Though warehouse clubs are not best known for their apparel selections, they made inroads in the category last year and managed to ring up $1.3 billion in apparel sales.

Grunge and workwear looks proved a particular boom to discount stores. Plaid skirts, work pants and overalls are common discount items that suddently had a fashion mystique. Companies like Dickies unwittingly found themselves leaders of a fashion trend. In addition, this same trend sent junior customers and young men into discount stores, giving retailers new shoppers to target beyond "the busy budget-conscious mom," as Kmart defines its basic customer.

Children's wear had its strongest showing at discount stores, which continued to hold a larger share of this category than any other retail channel. More than 40% of all children's apparel is purchased at discount stores, according to NPD Research, Port Washington, N.Y.

Part of this market, infants' and toddlers' specifically, has grown up so much that many industry observers now separate the category from other children's wear. The designation became necessary as more discounters created baby sections in their stores, often combining infant apparel, baby commodities like diapers and hard lines products such as car seats and strollers all in one department.

Girls' wear especially sold well through discount outlets, while boys' apparel and infant and toddler clothing lost some ground, but the chains still maintained a market share of more than 40%. Share of market for girls wear at discount went from 43.9% to 44.3%. Boys' wear, on the other hand, dipped somewhat, according to NPD. Though discounters still held a significant share of the boys' market in 1992, 41.7%, that was down from 1991, when it was 43.9%.

In infant and toddler apparel, a relatively new segment to watch according to some industry analysts, share of market for discounters was 47.7% in 1992, down from 48.9% of the market a year earlier.

The biggest growth categories in the kids' market were in boys' jeans and boys' and girls' shorts. Surprisingly, boys' dress shirts also did well despite the fact that the boys' market is driven by casual apparel.

In women's wear, casual separates led the way in 1992. Shorts were one of the growth categories in this market, a trend that continues in 1993 with both casual denim styles and dressier shorts that can be worn to a casual workplace. Though this also began as a junior trend, it is now an accepted fashion option for missy and plus size customers as well.

Most retailers have well developed intimate apparel departments which have helped this category maintain healthy sales. More retailers are also cross merchandising intimate apparel with fragrances, bath care items and potpourri, encouraging add-on sales, and creating an inviting environment for women shoppers to walk into. The trend that began at Victoria's Secret and expanded to department stores has now settled into discount.

Part of the fashion twist in the women's market was colored denim, which gave new life to the five-pocket jean. This, like the grunge trend, also brought juniors back into discount stores to shop.

Colored demin, in both men's and women's lines, is expected to be a hot Back-to-School item for 1993 as well.

The jeans business is currently undergoing some adjustment. Last September, Lee announced it would move its Lee brand upstairs and replace it with a Riders label at discount. This angered some retailers and caused a number of jeans vendors to scramble for more real estate to fill the void left by Lee.

No one winner has yet emerged from the fray. Both established national jeans brands and newer introductions (Reed st. James and H.I.S. in men's jeans, for instance) have successfully expanded their presence in discount stores.

Sports licensed apparel is no longer merely a trend category but a staple in discount stores and throughout other retail channels. However, sport licensed apparel sales in the men's and boys' area have leveled off somewhat and retailers have paired down their sports licensed mix. In many cases, once thriving sport "shops" have been replaced with a few racks and rounders of the best-selling sports licensed merchandise in the men's or boys' department.

There are many companies and organizations trying to keep this trend alive, however, by creating new fashions and combining licenses. For instance, Warner Bros. has struck a deal with a number of sports teams for cross licenses. Expansion teams in virtually all sports now design logos with licensing in mind. And established teams like the New England Patriots, which aren't selling as much licensed apparel merchandise as they would like, have changed their signature to a more stylized logo.