Relating to separates - men's clothing - Apparel Merchandising Supplement

Discount Store News, Sept 5, 1994

* Ask a discounter about merchandising men's wear as collections or related separates and the response could easily come in the form of body language--eyes rolled to the sky as if evoking heavenly intervention.

In general, items-oriented merchandising rules in the mass market. Merchants say they assort their stores this way so that they can capitalize on "hot" styles. True enough. They also claim their customers prefer it this way--keep it simple, stupid--maybe. But, low cost structures and a lack of on-floor personnel also force their hands.

This approach is one more factor that separates the discounters from the department stores, which, of course, have well-developed collections and separates departments.

However, discounters do utilize a cross-merchandising approach in some areas, such as licensed sports apparel. Another exception is in denim. Many discounters have denim shops with strong graphics. These focus on the jeans, which are merchandised on tables, rounders, or wall displays, with denim-friendly knit and woven tops nearby. Casual slacks, which appear to have taken hold at the discount store level, is another area in which the separates approach has been at least marginally used.

Rose's, Henderson, N.C., and a number of other discounters also merchandise workwear as a collection on vendor supplied fixtures.

Cecil Kearse, divisional vice president of men's wear, Kmart, says that his stores are easing into a coordinated merchandise presentation of placing slacks and tops closer together so that consumers can mix and match, which gives Kmart multiple sales. Kearse says that, where the company is putting the two categories close together, apparel sales appear to be improved. Like other national and regional discount chains, Kmart works closely with its vendor base on this approach.

But at most stores, including Kmart, classifications dominate.

One chain, in fact, has backed away from collections merchandising. About a year ago, Shopko Inc., Green Bay, Wis., moved away from merchandising men's separates altogether except in the denim area where Shopko has found that a collections approach still works.

Explaining Shopko's decision to return to classifications merchandising, Skip Chustz, general merchandise manager, says, "We think we can get a better clarity of our stock offering, and we think we can make a more dominant statement to the customer. It's working great. We think we're getting better results."

Steve Katkin, executive vice president of merchandising, Prange Way, says that his company's 23 units, all in Wisconsin, also merchandise more strongly by classification.

Prange Way's only related separates selling is done in the denim area, where jeans and tops are sold together. The company picks up extra sales there. Otherwise, Prange Way merchandises apparel separately on a classifications basis, says Katkin, "so that our customer can see the depth and breadth of our assortment. Being a smaller operator, it's important for us to be classification dominant in our stores."

Jim McCarty, marketing director for Brittania Sportswear Ltd., a division of Levi Strauss, takes exception to this line of thought. He says that his company's consumer research has found that mass merchandisers can increase their sales by 16 percent to 40 percent by merchandising separates in a concepts type of atmosphere with strong visual enhancements. This would include, for example, a jeans shop with jeans, tops, jackets, socks and other denim-friendly accessories; a weekend casuals shop, or a shorts shop with related separates.

"Everybody's got price now, so what's the next thing you look for?" McCarty asks hypothetically. "Proper product presentation addresses that next issue, and the people who do that will be out in front. Product presentation is an extremely cost-effective way to maximize sales."

McCarty goes on to say that mass market retailers have been "extremely successful" the past 20 years with price, and have simply built new stores to increase sales. However, most of the good mass market locations have been taken now, leaving these retailers to increase sales and market share by taking business away from each other.

"From this time forward, they have to make their stores more productive," says McCarty. "They want to increase consumer loyalty, make shopping easier and give them understandable merchandising concepts on the selling floor. The best way to do this is through a thoughtful approach to merchandise presentation."

Retailers will not only see sales increase, he says, but consumer perception of merchandise quality, fashionability and variety will improve. However, he adds, Brittania has found that some mass merchants are not at all receptive to this type of merchandising. "They've been successful and they don't want anyone coming in and telling them how to do their business. The little guys who are trying a little harder have an advantage here."

Angelo LaGrega vice president of consumer marketing, Wrangler, says that his line is more successfully merchandised as classifications than as related separates. Timber Creek, however, Wrangler's casual line for mass retailers, has been "very, very successful" sold as related separates, but, by the same token, has been successfully sold by classification.