California Apparel News

The California Market Center showroom building was buzzing with delegations of department-store buyers Oct. 7–9 during the LA Majors Market, the biannual show devoted to department-store business. The most recent show was focused on Spring 2014 merchandise. For many of the show’s vendors, the buyer traffic was just as good as previous shows. But something was different.

“We have the same amount of appointments. Stores are still shopping,” said Steve Maiman, co-owner of Los Angeles–based juniors manufacturer Stony Apparel Corp., surveying five tables packed with buyers at his showroom on Oct. 8. “The question is how much open-to-buy do stores have to place on goods? How far will they go? We have the product. Now it’s in the hand of the customer.”

Buyers from some of America’s most prominent major retailers shopped the show. Most of the trade event took place in temporary and permanent showrooms on the CMC’s eighth floor, 12th floor in the “A” building and third floor of the “C” building. Buyers also shopped for merchandise at the Gerry Building.

Representatives from Macy’s Inc., Nordstrom Inc., Zappos.com, Target Corp., Belk Inc., Gordmans Stores Inc., Wet Seal Inc. and The Buckle Inc. browsed showrooms mostly merchandised with juniors fashions. But these buyers’ decisions were being reined in by anxiety over the greater economy, said vendors and Wall Street analysts.

Consumers are worried over economic turbulence from the shutdown of the federal government, which started on Oct. 1, and the possibility of a federal default. They also are worried about increases in the Social Security payroll tax, which was raised this year, said Liz Pierce, a retail industry analyst with Ascendiant Capital Markets LLC of Irvine, Calif.

In an Oct. 8 research note, she wrote consumers have been decreasing their spending in August and September, and there is a possibility that they might continue to be tight with spending into the crucial holiday season.

Recent sales performance of major department stores has followed the pace of the economy. The second-quarter same-store sales for industry leader Macy’s, which was reported Aug. 14, declined 0.8 percent. For Nordstrom, same-store sales increased 4.4 percent for its second quarter, which was reported on Aug. 15. However, the company reduced its forecast for full-year same-store-sales expectations to a 2 percent to 3 percent increase compared with its prior outlook of a 3 percent to 5 percent increase.

The major retailers also are quite worried over the tumultuous turnaround of JCPenney Company Inc.,said Mary Wilberding, principal of Design Alliance Group LLC, a Los Angeles–based consulting and investment company. With 1,100 stores, JCPenney is one of the largest U.S. retailers, but same-store sales declined 11.9 percent for its second quarter, which was reported Aug. 20.

The anxiety is making buyers postpone thinking about Spring 2014 merchandise. “They are spending less time on Spring orders and spending more time on readjusting Holiday orders,” she said. Wilberding also was a co-founder of One World Apparel, a contemporary fashion label that primarily worked with major department stores.

Yet, readjusting orders is part of the Majors Market. The show gives buyers an opportunity to “validate trends, confirm that their buying is on the right track and readjust orders if they need to,” Wilberding said.

Despite a feeling of anxiety about the economy, great merchandise will stand out and attract shoppers, Pierce said. “The consumer is not going away,” she said. “If you have a great product, consumers will seek you out.”

It seemed to be the mantra of the market.

“We create. You have to create your business; we have no choice,” said Doron Kadosh, president and chief executive officer of Celebrity Pink,which took out a sprawling temporary showroom on the CMC’s eighth floor. Celebrity Pink introduced a knitwear line with 200 styles for the market. It also introduced some licenses such as a Pink Panther 50th-anniversary license on T-shirts and sweats.

For David Vered, president of YMI Jeans, creating opportunity meant spreading the wealth of a winner. The denim market has been softer, he said, and his company has been selling a lot of printed leggings rather than more-expensive denim bottoms. So his team hopes to increase sales of jeans by capitalizing on one of YMI’s biggest sellers—the “Wanna Betta Butt” jean, which lifts the wearer’s bottom. The silhouette was carried over to many of YMI’s trousers, crop pants and high-waisted shorts.

THE GERRY BUILDING SCENE

The temporary showrooms set up at the Gerry Building were relying on buyer appointments to drive business.

On the fifth floor, the Trixxi temporary showroom was decorated in bright pink and buzzing with activity. “This market has been outstanding,” said Scott Grossman, Trixxi’s national sales manager. “We are very excited about Spring 2014.”

Grossman said the LA–based apparel company, which does juniorswear as well as sportswear, has seen its revenues grow 35 percent from the first quarter of this year compared with last year.

Pam Nadeau, who designs the Trixxi dress line, said Spring 2014 has been driven by dresses that come in a variety of prints and eye-popping neon colors. “For us, this has been a great market,” she said.

Across the hall, Roger Garments was busy with buyers at its temporary showroom. Within the last year, the company has brought back more of its production to Los Angeles to accommodate faster turnaround times for its juniors apparel. “Domestic production allows people to test and react,” said Lori Price, co-founder of the 10-year-old company, based in Montebello, Calif.

Before, about 90 percent of the company’s merchandise was produced overseas. Currently, about 40 percent of its production is done domestically, but the company is aiming toward 60 percent.

Testing products helps retailers feel confident about reorders. “Business is still a little soft in retail,” said Dennis Ammon, the company’s chief executive.

Over at the pop-up showroom for Jesse & J, a 2-year-old company that makes all its merchandise in Los Angeles, business was very good, said company founder Sarah Kim. “It has been amazing,” Kim said. “We have production booked to the end of the year.”

Part of the reason is the low wholesale prices Sarah & J offers. Juniors tops sell for $6 to $9, skirts go for $7 to $10, and dresses sell for $9 to $12.