Filling in the niches - discount stores are selling more niche categories of women's clothing - The Apparel Players

Discount Store News, Dec 4, 1995

Even in a trying apparel year, certain womenswear categories emerged as niches of opportunity.

Increasingly, mass merchants have made their stores destinations for segments of women's apparel that shoppers formerly sought out in specialty stores or department stores. These "Apparel Players" include intimates, casual dresses, career casual items and plus sizes.

Crossover shopping has been especially pronounced in intimates. Department stores have lost substantial market share - down from 28.4 percent of dollar volume in 1990 to 22.8 percent in 1994, according to NPD research - as mass channel resources stepped up their presentations and traded up in quality.

Meanwhile, discounters have succeeded in pushing up retail prices. Three years ago basic bras were priced well under $10 in the mass market. Now that ceiling is routinely broken

Virtually all mass chant retailers report aggressive plans for intimates in '95 and more growth in '96. Expanded floor space and better fixturing are coming into play.

It is not only full-line discounters that are capturing new intimate apparel customers. Sears has added square footage to its already well-developed intimates areas in the form of shops featuring a Sears exclusive: the Van Raalte brand by Warnaco. More than half of its 801 stores have adapted the new format.

Mike Edmonds, senior vice president, general merchandise manager, Pamida, is focused on "aggressively building the branded base," starting with a Playtex test.

In new product development, a current focus beyond shapewear and better fashion treatments is plus-size intimates.

At Kmart, a spring 96 launch of Jaclyn Smith full-figure bras by Maidenform is the latest extension.

And ShopKo senior vice president of apparel and product development Skip Chustz says, "Plus sizes in intimates has been underdeveloped, and we see it growing."

Just as full-figure lines can provide new volume in foundations, plus sizes are bringing mass merchants incremental business. At Ames, attention to wider assortments and better presentation has yielded double-digit gains in '95.

Richard Simmons has added pizzazz to the category with his licensed line, carried at chains including Ames, Kmart, Venture and Wal-Mart. John Lupo, senior vice president, general merchandise manager at Wal-Mart, calls the performance of plus sizes outstanding." They were especially well-received as a separately merchandised part of the Kathie Lee Collection.

Plus sizes were on a very aggressive plan at ShopKo in '95, with a strong '96 projected. Chustz sees plus sizes as a mainstream department, merchandised by "lateralizing those core tops and bottoms we have in missy. It is driven now by knitwear, but balanced. The important thing is to have core items, in stock, by location."

At Rich's, senior vice president and soft lines general merchandise manager Bob Greenwald says plus sizes will continue on a very aggressive plan for '96. The chain "will carve out more floor space and open-to-buy."

Celia Clancy, senior vice president, general merchandise manager for soft lines at Bradlees says, "We are very bullish on plus. We have upgraded fashion and Price points.. really addressing, the sportswear and career customer."

This direction is consistent with the move across all apparel segments at Bradlees toward better quality in "taste level, vendors, fashion and newness." In particular,. Clancy cites dresses as "the strength now in ready-to-wear." The chain will double its business in dresses for spring '96, not only With casual sun dresses and rompers, but ill updated career models as well.

The trend toward more dresses business is strong for all mass merchants. Lupo calls 1995 "the best dress year we've ever had." He surmises that the new popularity of more feminine styles, and some consumer fatigue with more casual looks, has led to renewed interest in dresses. While Wal-Mart is planning on a strong dress business for '96, Lupo notes, "It's always been a treacherous business, here or in department stores. Sometimes you hit, sometimes you don't." Pamida is adding casual dresses priced at $29.99 to $39.99 for spring 96 to take advantage of an underdeveloped opportunity.

Depending on local market needs, casual dresses can fit discount customers' needs for office casualwear, as well as weekendwear. ShopKo is exiting the coordinates business that has traditionally formed the core of career assortments. However, dresses are well above plan, Particularly denim-reizited and knit casual dresses.

Bradlees will also downplay traditional career coordinates in favor of more sports-wear-oriented separates and dresses.

Bradlees continues to sharpen its presentation of soft dressing, finding, that customers respond to less-constructed looks useful for both careerwear and casualwear.

Wal-Mart, where the Kathie Lee Collection will ring up well over $250 million in its first year, is finding itself a destination for careerwear. The line is a mix of coordinates and related separates. Ironically, it has proven so successful that, its original definition as a career collection is rapidly transforming into a power brand across women's apparel categories. Shoes were one of the first rollouts, sleepwear is on the shelves now and intimates and accessories may appear by spring '96.