Endless summer for shorts - Apparel Merchandising - Men's

Discount Store News, Sept 16, 1996

Not able to count on the weather to heat up sales of men's shorts, discounters are squeezing gains out of the category by extending the season, while also buying closer to need.

Several seasons ago, the market speculated on the validity of fall as a season for shorts sales. Now the question has become moot, as Back-to-School has turned into a prime period for the business.

"We've found there is a growing Back-to-School business for shorts, especially denim," says Mark Minsky, senior vice president of soft lines at Caldor, whose view is reflective of many voices in the market.

The additional business driven by Back-to-School helped retailers crack low-double-digit gains in the category. But it was not without a slow start. 1996 has been running only slightly ahead of last year, according to the NPD Group, Port Washington, N.Y., but full results of Back-to-School are not yet tallied.

Last year, men's shorts generated about $2 billion at retail, an 8.2 percent increase over 1994. Buyers are planning their businesses with 10 percent to 12 percent increases for 1997.

"The weather hurt the business at the beginning of the season," says Ames Department Stores buyer Bob Smekal.

Wet and cold weather across most of the country discouraged shoppers from buying shorts in April, May and June. Sales surged in July and August, even leaving some retailers scampering to fill in more supplies, especially to cover Back-to-School. "We expect to make up sales for Back-to-School, but only in denim," observes Smekal.

Kmart. is among those emphasizing shorts for Back-to-School. "We're breaking our ad with men's Wrangler shorts priced at $14.99," says a company spokesman.

The Back-to-School momentum has been growing for two years, according to Angelo LaGrega, vice president of consumer marketing for Timber Creek, a division of Wrangler. "People tested it two years ago and it has evolved into a tremendous business."

Bob Luehrs, president of H.I.S., agrees there is less seasonality. "It has gone from a six-to-eight-month business to an eight-or-nine-month time period," he says, refering to the now February-to-October sales push. "But you're still not going see too many men buying shorts in November."

No matter how far it stretches, Back-to-School has allowed discounters to make more money on shorts, according to Jim Phillips, vice president of sales and distribution for Brittania. "It is no longer that at the Fourth of July you rip the displays apart and cut prices. Sales don't fall off a cliff anymore in August."

After the weak start, the short business picked up for most chains in mid-summer. "We had a one-day sale in August where we found people buying for Back-to-School," observes Jim Sparks, senior vice president, gmm of men's, boys' and girls' at Bradlees. He says what is key in shorts is to have a good stock position of basics like five-pocket denim. "Controlling inventory is also important."

Discounters are trying to keep closer tabs on inventory by purchasing closer to the season. "We are able to control our inventory better by buying closer to need," says Smekal. "That's the way consumers are buying."

Retailers say they are buying closer to demand when it comes to shorts in order to alleviate overstock problems experienced in other years. "The vendors are working with us, and it is the way the business has to go," says Smekal. LeGrega agrees, "Consumers are buying closer to when they'll be wearing items. They don't go out and buy in preparation for a season."

Smekal says the new buying patterns, coupled with a soft 1995 gave him a method to boost margins by seizing opportunistic buys on sharp deals on excess off-price merchandise. He used this ploy for summer of 1996, and it resulted in special deals on shorts he could price at under $10 and still make healthy margins. Shorts typically run in the $14.99-to-$18.99 range for both denim and casual shorts. And mass market retailers say it has been difficult to trade up shoppers beyond $20.

While pricing in competing stores is very similar, retailers are taking different approaches to display.

Wal-Mart, for example, hangs all of its shorts. In most Wal-Mart stores, the category utilizes four rounds. Shorts are kept separate from tops. Brands include Wrangler in white, traditional blue, stonewash, hunter and black, as well as striped styles priced at $15.94 with a sale price of $12.84; Bristol, priced on sale at $9.00; and Faded Glory, on sale for $11. Ames also hangs its shorts on tiered displays, while Bradlees uses some folded presentations. Discounters are split about 50/50 when it comes to hanging vs. folding. "The only problem with folded," says one retailer, "is consumers don't always know they are shorts."

Although blue denim is most popular, white emerged as a predominant trend during 1996, along with stripes. In casual shorts, buyers noticed trends following slacks, such as an increase in green shades. While there are big swings in long jeans between bleached or faded denim and dark denim, the shifts aren't as dramatic in shorts. Stonewash remains the best-selling finish.