Cautious Buying at L.A. Majors Market
After several months of weak retail sales, exhibitors and buyers kept expectations—and budgets—low at the April 7–9 Los Angeles Majors Market at the California Market Center.
“We’re coming out of a tough transition into Spring,” said Mari Forge, creative director of Speechless, a Vernon, Calif.–based juniors brand. “Everyone, from the buyers to the brands, has to be cautious.”
The market, which typically features volume-driven juniors and contemporary brands, drew buyers from major department stores and specialty store chains, including Macy’s, Kohl’s, Burlington Coat Factory, JC Penney, Gottschalk’s, Wet Seal and Aeropostale.
The CMC does not track attendance at the Majors Market, and some exhibitors noted a decrease in attendance, but many said they were satisfied with the business done at the three-day market.
“There are fewer retailers and less appointments, but the appointments we do have are more meaningful,” said Richard Clareman, president of the Self Esteem brand of juniors apparel.
“Instead of 30-minute appointments, we’re having three-hour appointments,” he said. “We’re getting more accomplished and taking the time in the showroom to make sure our business and that of our retailers is successful.”
Michelle Mulleneaux, vice president of sales for Fire, a juniors brand based in Los Angeles, agreed. “Everyone has to be very focused. We cut to order, we believe in our categories and partner with our buyers so that they move in the right direction and their buys work. It’s tough, and we all have to play it smart,” she said. “We have to edit ourselves in times like these. It doesn’t help us if our buyers go for something that we don’t believe in. We can ship it, but if it doesn’t sell, we end up paying for it in the end.”
The weak economy has forced many retailers to scale back, according to Mercedes Gonzalez, the director of New York–based buying office Global Purchasing Companies. She said retailers have cut spending and opted to stock garments that are proven sellers. However, business can be good in a weak economy, she claimed. “There’s the phenomenon of a retail therapy,” she said. “People shop when they are sad or depressed. But you need to give them a reason to buy.”
At New York–based retail chain Aeropostale, buying remained steady, according to Chris Lucca, an accessories buyer for the teen retailer. Lucca said the juniors market enjoys added protection against the ravages of a poor economy because parents would rather cut their own spending in tough times than tighten spending for their kids’ clothes. He said his company was ordering the same volume of product as it did in the same market last year.
Buying was up for San Antonio, Texas– based retail chain A’Gaci, according to company partner David Won. Won estimated the 36-store juniors retailer increased its Majors Market spending 25 percent compared with the same time in the previous year.
Retailers were buying close to season in this market, according to Alison Budow, owner of juniors showroom Alison Budow Sales. Budow said 60 percent of her business was for a May 30 delivery and the other 40 percent of her business was for a June 30 delivery. Her clients’ focus is providing fashion at a lightning-speed pace. “It’s a constant, test, re-order and move on,” she said.
Cool hunting
Despite the lack of a hot new trend for Fall 2008, buyers were still on the prowl for newness. At Speechless, that meant a move away from bubble shapes to dresses and tops with banded bottoms. “They don’t want anything that says ’last year,’” Forge said. Sweater dresses in cable, jersey and Missoni-inspired knit fabrications proved to be key for volume buyers. Grown-up touches— such as dolman sleeves and subdued purple, teal, black and charcoal hues—were also popular. “It’s a departure from the pinks and reds of Spring,” Forge said. Two-in-one pieces, including sweaters with built-in chiffon collars and high-waist skirts with built-in corsets, also proved strong for later Fall deliveries.
For Fall, Clareman worked with his buyers to use “open-tobuy dollars to maximize what is working currently,” he said. Retailers aren’t cutting back on their budgets, but they are being more careful with their buys. “Having less inventory is a smart strategy, but having the right inventory is more important,” he said. What’s checking now is menswearinspired styles, varsity/preppy looks and trendy outerwear made of fleece and French terry.
Dresses and tops in bold plaid prints were the hot tickets at Fire, which is known for its wovendress business. “We have to give our customers a reason to buy from us,” Mulleneaux said. “Everyone seemed to be responding to that look.”