Ward's soft goods format debuts; Wardrobes designed to compete head on with discounters - Montgomery Ward and Company Inc., department stores, apparel marketing format

Discount Store News, Nov 27, 1989 by Pamela Meek

Ward's Soft Goods Format Debuts

SAN DIEGO - Montgomery Ward's new soft goods format, Wardrobes, continues the Chicago-based chain's shift to specialty retailing formats and places yet one more category in direct competition with discounters.

Unveiled here earlier this month in three area stores, Wardrobes encompasses men's, women's and intimate apparel, plus shoes and accessories. The revamped mix caters to a general middle market, and is positioned to either meet discounter prices or beat department store levels by some 20 percent, according to Gene McCaffery, vice president of apparel planning and development.

Ward's new format, however, goes beyond pricing, since the overall effect is to create a niche that falls between the selection and service of department stores and discounters with the use of "lifestyle concepts," according to Hollis Wendt, senior planner for women's apparel.

Instead of the previous division of merchandise by category (i.e., coats, dresses or sportswear), the new format groups merchandise by look and style. Wendt said Wardrobes also concentrates on showing color stories in each department, since as McCaffery noted, "The most important aspect is that we are trying to buy goods that can be worn together."

Departments now have names like American Weekend, Fashion Attitudes, Fashion Classics, Special Measure, Intimate Options, Basic Essentials, Previews and Urban Works. Not only has the merchandise been regrouped, but also upgraded and enhanced, and Ward is now using a major private label manufacturer to help establish some key fashion areas, McCaffery said.

McCaffery said Ward is also planning to add celebrity endorsed private label apparel next summer, and details of the program are forthcoming.

Total inventory is also streamlined and tightened with a 50 percent reduction in sku's, providing a more narrow and deep approach for the chain, Wendt said.

After several years without it, Ward has reintroduced juniors to its new soft goods format. "We definitely think it's going to be a real big win," Wendt said.

To help launch the category, Ward chose to include a Gitano shop, with black fixtures and video monitors. Ward also added young men's apparel, with brands like Cotler and Brittania.

Shoes switched to self-service, and the mix shifted toward athletic wear brands like Nike, Reebok, Converse and Puma, and family shoe brands like Mushrooms, Hill & Archer, Fisher-Price and Hush Puppies. McCaffery said Ward has already gone to the self-service approach with shoes in about 70 other stores.

Ward dropped its cosmetics department, and the chain also discontinued men's suits, blazers and its line of private label hosiery.

Throughout all departments, Wards' soft goods presentation is enhanced by new signage, graphics and neon lighting. Registers have also been grouped together in each department and a dropped teal framing now hangs from the ceiling over each to notify customers of the location.

In addition to the three San Diego locations, Ward also introduced Wardrobes this month in Chicago. While the latter store received special touches, like parquet flooring, the three San Diego stores were all remodeled, and for test purposes, each received varying degrees of the new format, noted McCaffery.

The most extensive remodeling occurred at the chain's Mission Valley Center location, with fewer changes taking place at the stores in Bonita and La Mesa. At the 53,000-square-foot soft goods area in Mission Valley, McCaffery said the remodeling cost about $2 per square foot. Here, in addition to introducing Wardrobes, the chain also included its new Kids Store, which it introduced in October.

Ward chose San Diego for its test market, because the firm had good success here when it introduced Electric Avenue two years ago. Wendt also said San Diego's competitive retail environment allows the chain to test its new approaches against discounters like Target and K mart, promotional soft goods specialist Mervyn's, and department stores like May Co., Nordstrom, Broadway, Bullocks, Sears, JCPenney, Robinson's and Buffums.

Special TV spots and four-color ad circulars helped launch Wardrobes, and first-day traffic was indeed up at the Mission Valley store, said store manager Chris Davis.

The debut of Wardrobes, which was about a year in planning, follows Ward's introduction of Kids Store, Gold 'N Gems, Home Ideas, Electric Avenue and Auto Express. Ward, like Sears, has been looking to better position and enhance some of its core departments, and create more specialty retailing avenues, which can often become stand-alone stores.

McCaffery said the nearly $2 billion a year soft goods segment is one of the last categories to be overhauled, since unlike many of the other areas, apparel has been profitable, with sales per square foot averaging $210. For the next 12 to 18 months, however, he said apparel will be a key focus. McCaffery said next year Ward expects to remodel 50 to 100 soft goods departments throughout the chain, while also introducing the look in about 42 new stores.