Helping turn the apparel tide: dress reversal - AM

Discount Store News, Oct 16, 1995 by James Mammarella

Dresses have proven to be ore than a fair-weather friend to apparel merchandisers. Discounters, which ignored this category until recent years, no longer need convincing that dresses of modest make and price can provide substantial margin and turn. And the business is more than holding its own in a slumping apparel market.

"It's easy: it's one price, one outfit," says Patti Simigran, divisional merchandise manager at Ames Department Stores, referring to the value of dresses to time-poor shoppers.

Good timing has helped the mass merchants in this case. Consumers are buying more dresses overall, and due to the alertness of manufacturers and discounters, they are buying a greater share in the mass channel.

"It's value-driven," says Robert Adler, ceo of supplier Halmode, noting that MRCA research shows that department stores' share of dresses sold has shrunk from nearly 40 percent in 1985 to 23 percent in 1994. Recently, MRCA reported that 195 million units were sold in 1991 at all tiers, dropping to 178 million in '93, but climbing to 203 million in '94. Adler predicted that Americans will buy at least 220 million units this year.

Sears and JCPenney have seen spectacular gains, and discount chains from Wal-Mart to Caldor have rapidly ramped up and are poised for new growth.

"Caldor did virtually zero dresses in spring 93," says Mark Minsky, senior vice president and general merchandise manager for soft lines at Caldor, where dresses were above plan for the two subsequent years. "For spring '94 we had enormous growth, for spring '95 we had additional enormous growth," he says, "and for '96 we'll see continued good growth."

At Ames, career dresses were tested in a limited number of stores in spring '95 and Holiday social dresses will be tested this Holiday season. "We see a spring '96 rollout for career dresses," says Simigran. "The customer is reacting to both the career and casual look." She adds that the Holiday test is "based onbow successful we've been with the very career-type rayon dresses."

Aside from rayon, the key fabrication for dresses is denim. At Pamida, denim and denim trim drove the introduction of dresses last May.

"We are selling a lot of jumpers, particularly in denim," says Mike Edmonds, general merchandise manager of soft lines at Pamida. "It offers a value; the woman can wear it both at work and after work." He says the popularity of layered looks today lends dresses greater functionality.

Minsky agrees. "It's a good crossover category," he says, "especially when the dresses became more sportswear-oriented than they used to be." The customer base at Caldor is geared toward weekendwear, he says, and is primed to partake of dresses, whether in denim or rayon. Minsky adds that Caldor introduced plus-size dresses on separate racks within the department in '95 and will expand the offering for spring '96.

Discounters generally cap the retail price for dresses at $30. However, Glenn Schlossberg, president of Sasson licensee Jump Apparel, says prices up to $59.99 will be posted on some social-occasion dresses with the Sasson label, which will debut this Holiday at Kmart. Ames, Bradlees, Caldor and Jamesway.

The fact that discounters have grown in three years from a small base of dresses to a full range, from denim jumpers to contemporary column dresses and party gowns, speaks well of the reactive capabilities of the mass channel.

Knit dresses-flowy, all-cotton button front in a Victoria's Secret mode-opened at $12.99 at Ames, and were promoted at $9.88 this year. The highest-priced dress at Ames was $24.99, but Holiday models at $39.99 will be tested in the social-occasion styles by Jumping Joy and Sasson.

At Caldor, dress prices range from $15 to $30, with knits offered in a lower-than-$15 range. Minsky says the all-denim portion of the business is increasing, as is denim-trimmed rayod from such vendors as Pellini. Another still-growing fabrication is rayon challis floral prints. Double-knit acrylics have provided a boom as well.

Two little words--Kathie Lee--say much about the dress program at Wal-Mart. The value quotient of Wal-Mart's star collection has made millions of customers believers in this most fashion-forward of the chain's apparel departments. The name itself, an overnight success as a virtual national brand, may not be as important as the merchandise. The line consists of a coordinated collection of updated traditional dresses, suitable for work, church or an evening out. It's priced at $24.99 and under.

Adler, whose firm is both the dress manufacturer and the master licensee for the collection, observes that, while brands don't attract the shopper to a dress, "the brand name may get the customer to take a harder look."

"Styling, quality, fit and price are the combination," he asserts. "The brand helps to drive the product."

At Caldor, much of the dress assortment carries house labels Laura Tyler, Sarah Morgan and Flying Colors. Minsky says the origin of the garment is less important than whether it embodies a fashion change--a trend. The house brands at Caldor help the consumer identify the level of the item: Flying Colors for opening points, Laura Tyler as the main floor line and Sarah Morgan for the trendier looks.