Men's wear inches up - discount store sales - Special Supplement: AM

Discount Store News, Sept 7, 1992

Men's wear moved ahead during the first quarter of 1992 from the previous year, despite a weak economy. Discount stores reported 1992 first quarter men's wear sales of $1.2 billion, up from $1.1 billion last year, according to The NPD Group, Port Washington, N.Y. The basic, staple items did well here, with such products as underwear, jeans and activewear showing strong figures. Department stores also show an increase going from $1.6 billion this year from $1.5 billion last year.

Discount stores again led in men's furnishings sales percentages for first quarter 1992, in terms of volume generated, compared to other retail outlets. Also, mass merchants held the No. 1 activewear and jeans positions in terms of volume generated. In men's tops and bottoms, sales at discount stores in these categories ranked second, according to NPD.

Men's furnishings--classified by NPD as underwear, socks, accessories, thermal underwear, nightwear and robes--at discount department stores accounted for $223.6 million for first quarter. This compares to discount stores' 1991 same quarter results of $198.2 million, a rise in the category of 4.9 percent.

Sales within the furnishing category consists of high percentages of underwear, socks and accessories.

Men's wear sales at discounters include $119.4 million spent on underwear in 1992's first quarter, compared to last year's figure of $94.3 million. This accounts for 10.3 percent of these outlets men's apparel sales dollars for 1992's quarter compared to 8.7 percent last year. Through the offering of brands like Fruit of the Loom and Hanes at rock bottom prices, discounters have become the outlet in which men's underwear is purchased the most. Socks at discounters made a nice show for the retailers, at $83.6 million, compared to $75.5 million last year.

According to NPD, furnishings sales at Sears generated $35.1 million for first quarter 1992 down 9.8 percent from last year to $38.9 million. Underwear sales at Sears accounted for $13.5 million in first quarter 1992, down 32. 8 percent from 1991's first quarter results of $20.1 million.

Fleece tops and bottoms, not grouped under men's tops or bottoms according to NPD, but under activewear, boosted sales in the category for discounters, generating $91.0 million for 1992's first quarter, increasing 14.3 percent from the year before.

Lee, which is in the process of pulling out of discount stores, along with Fruit of the Loom and Hanes are some players that have helped to draw the fleece customer into discount stores. In-store merchandising techniques such as folded presentations and color displays contribute to the success of the basic fleece at these operations. Discounters sold the greatest amount of this product, at $91.0 million. Department stores, having the next highest figure in this category, sold $62.7 million.

Men's tops accounted for $2.0 billion across total retail outlets. Department stores generated 32.1 percent of its men's wear in this category.

Last year, men's tops at department stores accounted for 33.7 percent of its men's apparel sales. At discount stores, 28.7 percent of its men's apparel sales were in tops this year. In 1991, discounters garnered 30.9 percent of the men's wear category sales through tops.

Sales of knit tops at discounters generated 10.4 percent of its men's wear sales. At Sears, according to NPD, 9.6 percent of its men's wear dollars came from the sale of knit tops.

Department stores generated $170.8 million of its men's wear sales in dress shirts. That figure represents about 10.5 percent of total men's wear sales of these outlets. Off-pricers accounted for 1992 first quarter sales of $50.8 million in dress shirts, which was 11 percent of its men's wear total.

The sale of men's sweaters, though still on a decline, showed department stores with the highest percentage of sales in men's wear. Department stores sold $77.1 million in sweaters in first quarter 1992, compared to $108.0 million the previous year. Discounters fell for this period as well, with $29.8 million, down from $36.9 million.

Discounters again also took the second position in men's bottoms for first quarter 1992, accounting for $384.3 million in mass merchant sales in this category, increased from last year's $342.2 million. Sears, according to NPD figures, generated 41.7 percent of its men's wear sales in men's bottoms. This is an increase from 39.5 percent last year for the period.

The chain's slacks and pants sales were 20.0 percent of its men's bottoms sales, with that section alone helping to boost total sales for Sears in this category. Sears' strength in the category is bolstered by the marketing and sales of brands, particularly Dockers.

Discounters can attribute a healthy 19.5 percent of its total men's wear business to its denim sales with such mass market names as Lee and Wranglers being heavy hitters. A sweet price tag, coupled with good quality is helping discounters fare well in its sale of denim, perhaps attracting Gap wannabees into the store. Mass merchants have enjoyed first quarter 1992 denim sales of $225.9 million up from $195.0 million the year before. Department stores generated $129.2 million in jeans, down from last year's $132.9 million. With Lee pulling out of the discount store market, third-quarter resuits such prove interesting.