Levi's Considers Path to Discounters
San Francisco-based Levi Strauss & Co. chief executive officer Phil Marineau said he has no intention of selling the company’s red-tab label to discount stores. However, the company may consider creating a new denim label for that distribution channel, according to a company spokesman.
This week the company released less-than-stellar first fiscal quarter figures—a 6 percent decline in sales to $935 million compared to $996 million in the first quarter of last year—but reported higher quarterly earnings along with the prospect of becoming a multi-branded company.
Levi’s spokesman Jeff Beckman said the company is in the midst of a business turnaround and is focusing its resources on growth within and beyond its current channels of distribution. “At this point, it’s a potential opportunity,” he noted. The brand is currently sold at Federated department stores as well as JCPenney, Kohl’s and Sears. “We have pretty broad distribution,” Beckman said. “That’s the No. 1 priority for the company right now.”
In recent months, industry sources have speculated the denim giant may begin selling to Bentonville, Ark.-based discount giant Wal-Mart. Beckman said Levi’s doesn’t want to cancel out future plans of working with discount chain stores and is seriously looking into avenues for servicing a broad range of consumers.
The company is currently conducting research in retail and exploring opportunities across channels, Beckman said.
This week, Levi’s announced a rollout of its branded denim at Pacific Sunwear retail stores after a test launch of the brand. Levi’s will be sold at Pacific Sunwear’s 450 stores nationwide for the Back-to-School/Fall season. —Claudia Figueroa
