Roping in kids' fashions - Apparel Merchandising

Discount Store News, Oct 21, 1996 by Desiree Hanford

There's something new in the childrenswear industry, something that has been missing for quite a few seasons: optimism.

After struggling--long with the rest of the apparel business--in 1995, both manufacturers and retailers predict that strong profit numbers in childrenswear will be posted at the end of 1996.

In fact, at some stores childrenswear is currently setting the pace in apparel growth. At Pamida, for example, childrenswear led the company in increased sales and gross margin for the month of August. "It's been a business that we have a really good focus on, a very focused direction," says Eric Flodberg, Pamida's vice president, divisional merchandise manager.

Indeed, childrenswear sales for the first seven months of this year rose at all retail tiers with the exception of department stores. According to The NPD Group, Port Washington, N.Y., total outlet sales jumped from $11.7 billion for January 1995 through July 1995 to $12.4 billion for the same period of this year. During that period, total discount store sales increased from $3.9 billion to $4.2 billion.

The numbers should get even stronger as the year progresses, in large part because of a good, albeit late, Back-to-School season, says John Lupo, the former senior vice president, general merchandising manager for Wal-Mart, who was recently named the chief operating officer of the retailer's international division.

Retailers and manufacturers alike expect strong sales to continue into 1997 for various reasons. "Business is doing very well right now," says Mark Minsky, senior vice president, general merchandising manager for Caldor. "I think business goes in cycles and we're on the up portion of the cycle right now."

Even though retailers are optimistic, merchants aren't planning the season recklessly. "We will plan up, but we're not sure how much yet. we're still in the planning process, but it's hard to go out on a limb and say where we'll be." says Joe Macione, 4 to 7 buyer at Hills.

Retailers may be looking for solid childrenswear increases, but they aren't necessarily broadening their assortments. Rather, they are more focused than ever. Consequently, when customers enter stores looking for childrenswear, they'll be greeted by plenty of denim, bright colors, activewear and licensed goods.

Denim shorts, most with a little wider leg that goes down to or just the past the knee will be well presented in boys' spring apparel, and to some extent in girls'. "We're buying them for spring, and we are buying more then last year," says Jon Devorkin, Caldor's divisional merchandising mangers for childrenswear.

Like jeans, these shorts will be available in more colors than just traditional blue; khaki, green, brown, black, dark olive, and sage will be vying for customer dollars. "Denim is a big seller, especially the colored denim," says Jim Sparks, Bradlees' senior vp/gmm for men's, boys' and girls' apparel.

Angelo LaGrega, vice president of consumer marketing for Wrangler, predicts that next year the company will have a 50 percent increase in childrens' short sales over last year. "We're seeing kids' shorts for a longer season, starting in January and going through August," says LaGrega. "Kids want to start wearing shorts as soon as possible and wear them as long as possible."

Denim shorts sales for both boys and girls have been so good in recent years that they've cut into spring sales of Chic/HIS denim jeans. To offset that loss, the company has switched from 14.75 oz. denim to 13.75 oz. denim for jeans. Bob Luehrs, the company's president, says he thinks this switch will boost spring jean sales because the lighter jeans are more comfortable and are less expensive to manufacture than the heavier jeans.

While denim shorts for girls are also expected to be popular, other denim apparel such as jumpers, rompers and dresses should be big sellers. Denim has had a major design impact at M. Hidary & Co., which has paired jean motifs with piques, gingham and florals. The result is a dress, romper or jumper that has both a denim and a country look.

In addition, Jodi Sherman, merchandiser at Hidary, says there will be plenty of girls' apparel with backties, eyelets and embroidery. "We're seeing the more feminine side of things for girls," she says.

When the childrenswear spring lines are rolled out, denim will be sharing space with shiny, bright colors that have been making a comeback recently. Orange, fuscia, green and yellow will be the predominant colors on cotton mesh and nylon shirts, jerseys and shorts. These shades are also incorporated as trim shades on some woven tops. The bright colors also will translate into activewear, an area that has seen growth at many stores, including Hills and Pamida.

"Active looks very optimistic," says Hills' Macione. "Active will be up considerably over last year. You'll see more of a soccer look, as well as some of the traditional athletic looks. The whole movement into brights and athletics has opened up a whole new area for us."

Wind pants for both boys and girls have been a surprisingly big seller for Pamida and ShopKo. Introduced at Pamida last fall, Flodberg says the nylon pants, available in various colors, have sold exceptionally well since they hit the floor. "Anything with an active interest will be strong," Flodberg says. "We were one of the first chains to have these and they just blew out in the spring."