Steady strokes - Apparel Merchandising - Swimwear

Discount Store News, Sept 16, 1996 by James Mammarella

Retailers had a beach blanket party with swimwear in 1996, dauntless in the face of less-than-steamy summer weather. Plans, whether conservative or aggressive, were exceeded in most cases, and consumers showed little resistance to the higher prices many retailers put forward. Having lavished more attention on this somewhat underdeveloped business, the chains also identified key product trends and merchandising angles that will provide steady growth for spring/summer '97.

Merchants at Bradlees, Hills, ShopKo and Sears all reported sales volumes above plan. Markdowns were disciplined, coming earlier and more frequently, partly due to a very cool spring. The effect was to avoid an undertow of late season clearances.

"We had a good season in spite of a soft end in July," says Celia Clancy, senior vice president, general merchandise manager for women's apparel at Bradlees. Against an aggressive plan in swimwear, Bradlees realized above-plan results in both sales and margin.

Hills Department Stores saw its sales outdistance a conservative plan. Larry Angst, vice president, ladies' soft lines, says the chain will devote resources toward making even more of a splash next year.

"At ShopKo, we had an aggressive plan; we tripled the square footage across the department," says Skip Chustz, senior vice president, general merchandise manager for apparel, "and sales were 50 percent above our plan."

Sears, retailing's comeback kid, also saw exceptional gains. "We had double-digit increases and exceeded expectations," says Robert Burgert, divisional merchandise manager for women's apparel at Sears, which has a similarly aggressive plan for 1997. Burgert added that the average price was up this year, and "we expect it to rise next year. Higher-priced items are selling well."

At Sears, swimwear prices in 1996 ranged from $20 to $65. But even at the more low-price-oriented ShopKo, merchants were pleasantly surprised that the best-selling suits were in the upper and middle price ranges; suits there ranged up to $45, with $25 to $35 the sweet spot. Bradlees found a large school of business at the $40 level in a $25-to-$40 department.

"We previewed some $55 suits for '97," says Clancy, "and we've dropped our $15 promotional category."

In some regions, Wal-Mart successfully used $20 as an everyday price for much of its Catalina line, another indication that consumers are willing to pay more than rock-bottom prices.

As retailers continue to swim a rising price tide across assortments, suppliers agree that mass merchants are making the most of manufacturers' effort to put more quality and construction into popular-priced goods than ever before.

Chuck Handy, vice president of sales for A.H. Schreiber's Beach Native division, says, "The cost of the fabric is more expensive than in the past, and the amount of detailing is amazing. We're using $18-to-$20-a-yard fabric and doing things like holograms. There used to be a big gap in quality between what we made for the real upstairs market and our popular-to-moderate goods--now it's shrunk to nothing."

Yet retailers seek margins that remain constant or increase, so some suppliers have assumed more of the cost. Jim Post, vice president at Body I.D. Swimwear, says five years ago a typical regional retailer would get a 60 percent initial markup with a 35 percent maintained margin. "Now they want a 60 percent initial with a maintained in the mid-40s, just like department stores." Post theorizes, "In department stores." Post theorizes, "In department stores, the issue is how cheaply can I sell to the consumer, and in most discounters it's how much can I sell it for, so there's a blur in the middle."

Handy asserts, "I think the prices will have to go higher. Either offer the basics for $19.99 or compete for the department store dollars."

The mass channel's current flow is along the latter tack, and the tidal wave of shape influence in swimwear is adding to the surge. "How much of the business is influenced by shaping? Everything," says Scott Smith, vice president of sales at Christina Swimwear USA. So much so that Christina has added a third option to its line of Superbra and Super Support models: Super Natural, which delivers a natural look and strong support, sans underwire.

The more constructed suits can have a strong seasonal effect. Shapewear-seeking shoppers at Bradlees plunged in early, giving February and March sales a lift. "When you really need fit and function, you shop a little earlier," reasons Clancy. "I have a very developed missy business," so the impact was pronounced.

Bradlees helped pioneer the Body Type shape-influenced line by Body I.D. in past seasons; the sizing and merchandising system has since been adapted by other vendors and adopted by most retailers.

"Selling missy swimwear by body type is 25 percent of our business now," says Post. The line features special silhouettes and shaping construction for tummy control, hip smoothing, long torso, full bust and smaller bust enhancements. Retailers use customized sign toppers developed by Body I.D. to assist shoppers in finding the desired slimming or support effects.