Dressing up Caldor - Caldor Inc.'s Bristol, Pennsylvania store's apparel department - AM Apparel Merchandising - Cover Story

Discount Store News, Dec 7, 1992 by Jeffrey Arlen

Marc Balmuth knows that ribbed knit women's tops are hot. Caldor carried a $30 fur blend version this fall. Balmuth is also aware of the current fashion value of tunics and sarongs.

The fact that Balmuth has a handle on the minutiae of women's fashion wouldn't be at all surprising if he was a divisional merchandise manager or a general merchandise manager. But Balmuth is the president of Norwalk, Conn.-based Caldor, a position that is insulated at many stores from the day-to-day merchandising process. Yet Balmuth's hands-on approach isn't an exercise in corporate redundancy or second guessing. Rather it is indicative of a competitive advantage this regional retailer, long one of discounting's best assorted operations, holds.

As Caldor's chief merchant--Balmuth was schooled at Abraham & Straus and Macy's before joining Venture in 1985 and later, in 1987, Caldor--he's overseen a merchandise mix that historically has been sharper and more in tune to trends than those at the typical discount operation.

Yet Balmuth and, naturally, chairman/chief executive Don Clarke, face a number of vexing challenges that go beyond buying expertise. The national chains, Wal-Mart and Kmart, are forcefully pressing into Caldor's traditional trading area in the mid-Atlantic and New England states. Meanwhile, Bradlees plans to strengthen its position in the New York metropolitan area, a Caldor stronghold. In fact, Caldor and the Braintree, Mass.-based firm are grappling for six former Alexander's sites.

New competition, particularly in areas such as Long Island where Kmart has opened several consumer-friendly, modern stores, will force Caldor to overcome one of its traditional weaknesses, in-store merchandising, if it is to continue to thrive.

"We haven't been known for our apparel presentations, but we are getting our act together," says Clarke.

In fact, Caldor's retailing stage is in the process of being dramatically honed into newly designed sets that are state-of-the-art examples of 1990s-style store design.

Caldor's latest in-store apparel strategies are now evident at eight new locations that have opened since October. Apparel areas, which command slightly more than 30 percent of the selling floor, have been streamlined to make shopping easier and make presentations more attractive.

High-tech "impact" fixtures serve as lures for many apparel classifications and 10-ft. modular walls help segment the categories on the floor while adding additional merchandising space.

A display at Caldor's new 113,000-sq.-ft. Bristol, Pa., unit that opened in October typifies the discounter's new in-store approach. It features a towering entrance way to its licensed athletic apparel department. On top of a metal arch with directional lighting is perched a mannequin that's fully clad in local sports regalia--coordinated Philadelphia Eagles sweats, cap, sunglasses and matching sports shoes.

The fixture is an example of how mass merchants have begun the process of changing their designs to make shopping easier for time-pressed consumers. Historically Caldor, as well as most other discounters, didn't clearly distinguish one apparel area from another on the floor. But Caldor's new display is effective because it does just that. A shopper looking for athletic apparel can't help but know where to find it as soon as the area is spotted.

Displays of folded merchandise have also been added to Caldor's 136 locations, and the impact has been a boost to the bottom line.

Referring to a folded display of Brittania casual slacks in the men's wear department, senior vice president, general merchandise manager Mark Minsky says, "it's worked out fantastically for us. Overall, we've had great increases in sell-throughs, and what was particularly rewarding was the tremendous increases in full-price selling."

The company is trying other means to augment its margins as well. This fall merchandisers placed point-of-purchase signs that say "Caldor Low Price" on fixtures housing goods they feel represent extraordinary values to their customers.

However, it is doubtful that the value pricing program will change basic Caldor marketing strategy, which relies heavily on promotions in advertising circulars. According to a report by Robert F. Buchanan, an analyst with Baltimore-based Alex. Brown & Sons, 42 percent of Caldor's total sales are generated from items advertised.

But Caldor executives are certainly playing up apparel, and giving it more space in new locations. "The category generally generates sales in the low 30s (percent of total). At new stores it's the high 30s," Balmuth says.

An increased apparel profile not only builds margins, but also serves as a point of differentiation from competitors. "Our overall strategy is to put more emphasis on businesses that have elements of change. The apparel business by definition is change," explains Balmuth.

In addition, buyers are encouraged to continue to capitalize on Caldor's historic merchandising strength. "The goal is to deliver fashion merchandise as fast as the specialty stores that lead the industry," Balmuth says.