Retailers at MAGIC see thin silver lining - MAGIC International apparel show

Discount Store News, Sept 18, 1995 by James Mammarella

LAS VEGAS -- Discount retailers working the floor at the MAGIC International apparel show were guarded in their assessment of the market for the remainder of 1995 and early 1996.

Bill Underwood, senior vp, vendor and product development at Kmart, struck a common chord in noting that the Back-to-School season for apparel was sluggish. Eric Flodberg, vp, dmm at Pamida, assented to that view, but added that the season had finally gotten underway during the last week of August. Merchants from both Venture and Hills Stores indicated that inventories were lean enough to mitigate the impact of markdowns and provide flexibility in buying.

Part of the up-side to the late summer period, said Mark Minsky, senior vp, gmm soft lines at Caldor, was good sell-through in denim dresses and sweater twin sets. Searching for a silver lining in the mostly cloudy outlook, discounters joined their colleagues from other channels (attendance was estimated at over 72,000) in seeing the gleam of potentially strong volume in Fridaywear, or office casual, apparel. One way to merchandise to that trend, said Gregory Blow, director of fashion merchandising and product development for Venture Stores, is to give customers more mix-and-match choices and encourage a casual actives look--"taking familiar items and putting them together in multipurpose ways--new ways," he said, "to look very fresh--a shallow V-neck T-shirt with a linen shirt worn as a jacket, a polo shirt with a T-shirt under it, a contrast of color and pattern."

Cecil Kearse, divisional vp, menswear at Kmart, said the chain will likely offer two tiers of "corporate casual" because of the range of what is considered appropriate in different environments. Kearse said he expected to see good results from both the upscale and more casual sides of the equation.

Retailers and vendors alike said that while denim jeans were flat, activewear was generally better. Demand was seen as growing for walking shorts, khaki styles and elastic band woven shorts. Non-team looks in tops were heralded by many in the current strong knit cycle. Attitude styles were also moving at mass merchants and at off-pricers like 1/2 Price Stores. Above-average potential was cited for branded goods with logos like Rawlings, Spalding, Voit and Wilson. In fact, Sara Lee Knit Products is convinced it can build Spalding into its "third megabrand" after Hanes and Hanes Her Way, said Darryl Williams, director of sales for Sara Lee's Spalding Apparel division. The newly formed activewear collection will be shipping for early 1996. Fruit of the Loom's burgeoning actives line for Wilson will face off against this challenge.

Beyond activewear, bright spots varied from chain to chain. Bob Greenwald, gmm at 29-store Rich's, said remerchandising has paid dividends. Ladies' foundations and men's and boys' denim were performing well above last year, he said. Merchandise manager Harry Tobman said consumer response to promotions was on plan, but there was little gravy past that.

Robert Goodfriend, chairman and ceo of Southern off-price apparel chain Goody's Family Clothing, said lighter-weight flannel shirts were selling briskly early in the season. Thomas Kelly, executive vp, gmm, added that fine gauge knit sweaters were providing good ring.

Kearse said that recently several areas have performed better than planned for Kmart, including wrinkle-free and twill slacks in both clear and washed looks; conversational T-shirts, fashion polo shirts and printed knit tops in general; and lighter weight, yarn-dyed woven tops. He also cited pleasing activity in such accessories as jean belts, straw hats and team-licensed baseball caps.

Ron Zindman, vp, gmm at off-pricer Syms, said banded collar sport shirts and cotton/canvas outerwear were performing well. Rich Goldman, executive vp, merchandising at Men's Wearhouse, asserted that the men's sportswear business was solid within his chain's focused format as well.

Sheila Terry, menswear merchandise manager at buying consultants The Doneger Group, said orders written at MAGIC revealed that retailers see good performance in spring '96 for a young men's market driven by sports influences like soccer and street hockey, as well as the resurgent surf looks.

Among the news that surfaced during MAGIC:

* V-F Corp. president Mackey McDonald took on the ceo mantle from Lawrence Pugh, who remains chairman.

* Menswear dmm posts suddenly opened at Caldor, Hills and Pamida. Veteran Rich Toback left Caldor to join Kmart as divisional vp, menswear.

* Wal-Mart inked an order for Olympics/Looney Tunes sport bags and backpacks by Innovo, an early indication of the '96 Olympics' merchandising potential.

* Licensed sports apparel maker Trench Mfg. said it would bring the Goldd's Gym and Blade Runner (from Rollerblade) labels to the mass channel this fall.

* Dickies will ship workwear for women-jeans, bib overalls, twill work pants--for spring '96. The line already has early placement in small regional discounters Grandpa's (Bridgeton, Mo.) and Levine's (Dallas).