Backpacks are a children's fashion accessory

Discount Store News, Sept 5, 1994

NATIONWIDE DSN REPORT -- Bags are big. Even for kids. And discounters have more than one way to win. While some key in on licensed character looks, others capitalize on the category by playing up fashion choices for their younger customers: big assortments and plenty of current looks.

Kathy Hurley, vp, gmm Rose's, said one way in which particular styles enter the kids' market is by translation from fashions popular with older age groups. She observed that suede is a look that has "moved swiftly from juniors' to children's sportswear and now into children's accessories." She cited suede treatments as leading fabrications in vests and bags, in particular the mini bags. "We've had a very positive reaction," she said, "to the one shoulder, wallet on a string thing, at $4 to $7."

Hurley added that Back-to-school time is bag time, the season when store buyers' instincts are put to the test. "The bags have been moving in fabric treatments, textured canvas in colors, corduroy in backpacks and vinyl backpacks. There are peaks, but I think these will continue."

Kmart's merchandisers have also found that a broad selection can work. "I think we try to make that statement in backpacks for Back-to-School: to show variety and be on-trend," said David Penrod, divisional vp, fashion accessories at Kmart. Penrod commented on the dynamics of the season: "We sell 90% of our kids' backpacks from July to Sept. 10. Then we bring in a butter program of goods--for high school and college kids--and take that through year-end."

Licensed accessories remain the easiest to work into cross-merchandising within the children's departments.

At the Middletown, N.Y., Bradlees store, pawprints at the front door lead shoppers around to the rear aisle where, adjacent to the juvenile furniture area a Lion King boutique has been arranged. A full range of merchandise is displayed: sleepwear, T-shirts, visor hats, full outfits for toddlers, coordinates with African batik-look prints, toys, games and books. Next to the Lion King backpacks are a range of other backpacks, a good idea for pumping up Back-to-School sales.

Hurley of Rose's pointed to boys' web belts "with the character on the buckle and integrated into the fabric," displayed near items like baseball caps and socks. For girls, character license coordinates include hosiery and underwear. In terms of specific properties doing well, she cited "Lion King especially with girls, and in little boys, it's Power Rangers and X-Men."

Bob Greenwald, gmm at Jamesway, assented, noting, "Any licensed backpack in children's is a hot commodity." He pointed to the current strength of Looney Tunes among others.

While bags are big for kids, they are bigger still in ladies' departments, with good volume reported for athletic totes, natural fiber and denim-related looks in casuals, and a new surge in leather items.

Kmart's Penrod said, "In totes, handbags and backpacks, the business has been phenomenal--especially in the canvas tote area." He said an everyday promotional program has worked well with store-specific EDI-guided shipments.

"We keep less inventory in a store, watch the EDI and feed it back on a weekly basis. If a store is selling 20 pieces a week of floral printed canvas, we're making sure they get that back."

Penrod added, "We'll change the look every 60 to 90 days; this opens the door on more opportunities." Among such gains this season: "The branded vinyl handbag by Chic, by Sasson, has been a real pleasant surprise for us."

Joey Chehebar, president of bag manufacturer Everything Kids, asserted that discounters can sell bags for children beyond the licensed character styles. In fact, he said, "The upscale backpacks are selling to the younger set more than ever. "Chic, Sasson, Gitano are there; now L.A. Gear is moving into the market."

With adult-looking backpacks available in kids' sizes at retail prices of about $12 for nylon, $15 for canvas and $18 to $20 for cordura, there are certainly more choices. "But don't ever forget the sweetheart-shaped bags and little boyish designs," Chehebar cautioned. He said Garfield is hot, and the new Gargoyles cartoon series due out this October by Disney will be backed with a substantial marketing campaign.

He predicted one more licensing opportunity that will contribute to 1995, which he sees as another better-than-25% growth year for bags: "The '96 Olympics. We're seeing big '95 Back-to-School orders on all types of Olympics bags." 100-meter knee-high backpacking, anyone?