Flourishing fleece

Discount Store News, Feb 23, 1998

Retailers who are contemplating cutting back on their kids' fleece orders might reconsider such a strategy. While this past fall unseasonably warm weather initially caused a dip in sales, merchants cite good results in recent months, with double-digit increases anticipated by some merchants for the Back-to-School season. Additionally, although basic models are in slow-growth mode, consumers are looking to discounters for fashion styles, including polyester fleece and options emblazoned with licensed icons, flashy zippers and other nuances. Private label goods are moving at an accelerated clip, too.

"All our fleece is faring well and has shown impressive growth compared to the rest of the children's department." asserts Skip Chustz, senior vice president, general merchandise manager, ShopKo Stores. He describes the category as having trended upward by 10 to 15 percent over the past year, adding that boys' fleece accounted for 60 percent of product movement and girls' fleece accounted for 40 percent.

Much the same holds true at the beleaguered Venture Stores, where performance within the classification proved significant, even early in the season, and steady increases have become the norm, according to a children's divisional merchandise manager for the chain. Ames Department Stores and Kmart, too, were among mass merchants reporting rapid movement of fleece for young and older youths alike.

Shoppers' price sensitivity, coupled with parents' reliance upon basic sweats in the $7.99 range as a playwear uniform, is rendering fleece movement steady after a weather-induced purchasing lull. While sales are up by two percent at best, mass merchants say the basic portion of the business nevertheless remains very important.

Heavyweight goods, which provide better margins for both manufacturers and retailers, are fighting for shelf space. "Basic has not really advanced over the past year," states Bill Weikert, divisional merchandise manager, children's apparel at Ames. "However, it will always sell nicely because there is a continuous market for inexpensive fleece." Weikert says lighter 7-oz. fleece generally out-performs its heavier 9-oz. counterpart based on the fact that low prices drive basics sales at his store.

"Branded basics is the core of the fleece business, but the 9-oz. isn't that important in children's," agrees the Venture dmm.

In the staple fleece area, people can't tell the difference between 7- and 9-oz., and "they don't care. They grab whatever costs the least," says the general merchandise manager for a Midwestern chain. "The good part is that there are enough of these shoppers to keep basics healthy."

Mass merchants also agree the conservative colors -- notably, navy blues and dark greens -- generate the lion's share of sales from purchases made for boys. Fleece apparel in brighter shades of pink, yellow and turquoise remain the winners for girls.

Fashion Focus Growing

Though retailers for the most part don't plan large increases in basics children's fleece this year, they do anticipate increased interest in fashion goods including polyester fabrics and popcorn-textured pieces. "Fabric interest, softness and texture are providing us with great results," comments Chustz. He reveals that he is planning a "dramatic" enhancement of his open-to-buy for such goods in line with already brisk movement of fleece apparel in this classification.

Similarly, Target reportedly experienced a run on popcorn-textured fleece for infants during late 1997 and early 1998. Patrons of Ames emptied store displays of polyester fleece separates for preschoolers and older kids. As a results, Weikert is "planning up" where acquisitions of soft textured fleece for fall 1998 is concerned and seeking to expand the collection to feature polar pieces in infant and toddler sizes. The executive, who points out that prints are "gaining" in infants to 6X, is looking closely at popcorn-textured infant and toddler fleece as well.

Also commanding attention is novelty fleece, sources say. "It's doing great; we'll be planning for 10 percent to 15 percent growth again," says Chustz, who puts licensed fleece decorated with sports team logos at the top of ShopKo's list of winners. Licensed team apparel and goods bearing character likenesses proved popular among Ames' customers, as did embroidered fleece tops; Winnie The Pooh was the number-one character choice, Weikert notes.

"We think `board' looks, such as those shown by Pacific Sunwear, GAP, 5-7-9 and Old Navy, will continue to influence the fashion," he adds. "Oversized sweats and tails on shirts are going to become important, too."

Fashion affords retailers the opportunity to trade up. This year, Kmart, for instance, invested in zippered fleece tops and items with shiny trim, priced at $14.99 and $16.99.

"In boys, we're seeing color blocking and team sports motifs; in girls, licensed characters and embroideries," reports the Venture dmm. "Consequently, while our basics will be planned even for the coming season, fashion separates will be planned up."