Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/62026
THE COMMON AREA Americans buy more apparel Americans are returning to the clothing stores after years of shopping just their closets. The U.S. apparel market grew by 4 percent in 2011, with total sales at some $199 billion, ac- cording to research firm NPD Group. Men's apparel sales rose 4 per- cent. Women's apparel sales grew by 3 percent, and children's apparel sales by 6 percent. "This is testament to the use of sales and value pricing by retailers that did in fact get the consumer to respond," said Marshal Cohen, chief industry analyst at NPD Group. "This also goes back to the 'frugal fatigue' phenomenon we have been watching. It seems to have materialized for apparel in 2011 as consumers finally got back to building their wardrobes again." Dresses, in particular, en- joyed double-digit growth in 2011, posting a 17 percent increase in dollar volume sales. "The women's apparel market continues to be the barometer of the health of the overall apparel market," said Cohen. "As goes wom- 34 SCT / MAY 2012 percent, while off-price and specialty stores were both up by 6 percent. Department and national chain stores grew by 3 percent, and the mass merchant channel edged up 1 percent. Walmart reconnects with affluents Walmart's efforts to return to a growth track are paying off, Duncan Mac Naugh- ton, the company's chief merchandising officer, told investors in Toronto in March. The chain's U.S. same-store sales grew TRENDS POINT TO HIGHER SALES AT APPAREL CHAINS SUCH AS AEROPOSTALE. en's, so goes the market." On the men's side, dress shirts rose 14 per- cent, suits climbed 23 percent, and sport coats rose 20 percent year on year. "It's about the job, keeping it or getting it," said Cohen. "Younger men are looking to 'dress the part,' while older men are also looking to 'dress the part,' but also want to 'keep the part." Factory-outlet stores posted the high- est growth rate, up 15 1.5 percent year on year in the fourth quarter, the company's first such rise in nine quarters. The increase is attributable in part to the return of affluent shoppers after Walmart's attempt to go upscale drove them off, Mac Naughton said. Walmart had eliminated some cheaper merchandise, particularly apparel, to stock higher-end goods the com- pany thought would resonate with wealthy shoppers. The move backfired, because the wealthy and the not-wealthy alike went elsewhere. "We lost the affluent customers when we changed our strategy, because we took the selection away from them," Mac Naughton said. Walmart U.S. is returning to its "good, better, best" pricing model that accom- modates shoppers from across the income groups, he said. "We're taking a bookend approach to our as- sortment so that we can serve the dollar-store customers, the mainstream ones and the premium ones." Bucksbaum launches development firm John Bucksbaum, former head of General Growth Properties, launched a new development company with three urban mixed-use WALMART'S TIERED PRICING STRATEGY ATTRACTS WEALTHIER SHOPPERS.