Retail Report
Blacks Retail Report is a free monthly newsletter providing expert information and advice on the current retail market.
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- The Big Picture
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- Blacks Bottom Line
- The Big Picture
- Turn Time
- Fall Preview
- Blacks Bottom Line
- The Big Picture
- In The Bag
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- Blacks Bottom Line
- The Big Picture
- Stocking Strategy
- Women's Trends
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Blacks Retail Report
Luxury Apparel
August 2006
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Table of Contents
The Big Picture
High gasoline prices and the housing slump continue to be
blamed for a cutback in consumer spending, even in better goods.
Second-quarter spending increased by 2.5%, compared to a
4.8% rise in the previous quarter.
Not all retailers have been affected, as high-end stores such as Gucci and Louis Vuitton trumpeted strong second-quarter sales.
This fits with Blacks exclusive data on July sales of apparel and accessories, which jumped over 4% compared to last year.
In Market
It's been a busy month for retailers as they've put their holiday buys to bed and started looking to next spring. The majority of spring menswear should be bought by now and we're registering some disappointment in the lack of new trends.Men's casualwear is flooded with printed tees, relaxed pants and denim, and the only new push we see is in shorts. Tops are showing little variation and knitwear vendors have made a weak showing for spring. The stagnation in tops is taking a bite out of volume, as merchants ring in lower transaction levels.
The color palette will stay in the natural and dark tones though we may see some brighter hues, with blue making a comeback.
In womenswear, dresses and skirts continue to drive the business. Accessories are also doing well, showing a 22% jump over the last 90 days, according to Blacks data. As buyers head to Europe for spring goods, they should stay on top of these continuing trends.
Fall Forward
Back on the sales floor, fall items continue to perform well, driving business up over the last 30 days. But the strong fall start hasn't made up for the poor performance of clearance goods.Customers are showing little interest in buying last season's wear, even at a decent markdown. Retailers are getting caught in the trap of having to take steep markdowns to get rid of goods, or face accumulating old merchandise. The answer to this dilemma is to increase deliveries to speed up the amount of fresh merchandise hitting the floor. This strategy takes a shift in mindset, careful planning and additional time in market, but the alternative is slowed growth.
Merchants should identify areas where they can grow their business and develop a plan to fund those areas with additional inventory. Don't just accept that business is flat – build a growth strategy and go for it.