California Apparel News

From technology to real estate, the way that major retailers do business is changing, and some of those changes were reflected in the Los Angeles Majors Market, a department store–focused event that ran April 7–9 at the California Market Center.

“It’s becoming a real buyer’s market,” said Michael Silvestri, vice president of sales and marketing of outerwear for YMI, a Los Angeles–headquartered, denim-based line that exhibited in a temporary showroom in the CMC’s lobby. “They are fine-tuning their open-to-buy,” Silvestri said. “As a manufacturer, you have to become more dead-on with the assortment.”

While Majors Market exhibitors had a wide range of estimates on buyer traffic—ranging from an increase to a decline over last year—the vast majority agreed that buying habits have changed.

“When they walk in, they know what they want. If you want to show them something new, they are not into it. They are on a mission,” said Roberta Combs, a sales manager for the juniors knits label Fade To Pink, headquartered in Alhambra, Calif.

Stephen M. Kim, vice president of sales for Los Angeles–based label Rhapsody, also agreed the give and take between vendors and buyers has changed. “We used to make lines and tell them what is going on,” Kim said of sales meetings.

But with store buyers coming in with increasingly specific shopping lists, vendors have had to play a tough game, where they have to be both more flexible to buyers’ changing needs and also develop a more organized approach to businesses. “If you don’t have a whole team for costing and sourcing, it will be hard to survive,” Kim said.

New company Denim Lounge Inc. took a two-pronged approach, showcasing its premium juniors brand Denim Society and its Crafting Bar service, which allows retailers to customize their buy by selecting the fabric, thread, wash, hardware, trim and embroidery for the jeans.

“It’s a DIY [do-it-yourself] experience for them and a good private-label vehicle for us,” said Daryl Rosenberg, chief executive officer of Denim Lounge.

Rosenberg, whose career includes executive positions with L.E.I. and True Religion, teamed up with L.E.I. and Tarrant Apparel designerSarah Shelby to launch the Denim Society collection in October.

Rosenberg said he saw a void in the market for a premium, young contemporary denim. The line also includes plenty of non-denim items, including ponte, scuba fabrications and yard-dye plaids in jeans, trousers, skirts, overall and jogger styles, as well as jackets. The Los Angeles–based company participated in the Directives West runway show at the CMC (see related story, page 7) but met with buyers at its nearby design studio in downtown Los Angeles.

Changed landscape

The strict shopping lists reflect an increasingly competitive market for major retailers going through an era of big change, said Michael Exstein, a research analyst for Credit Suisse. He headlined his Jan. 29 forecast on department stores as “The Year of Living Dangerously.” Ultimately, he had strong faith in the majors sector. “It remains an over $100 billion sales sector that is not dedicated to one merchandise area and has a high degree of brand equity. The key for successful players has been flexibility,” he wrote.

However, he also forecast increased experimentation and competition. With bankruptcies declared by off-pricers such as Loehmann’s, the market for off-price goods has become more in flux, and department stores such as Nordstrom and Saks have been rolling out more of their off-price stores, such as Nordstrom Rack and Saks Off 5th. Walmart and Target have changed gears in the past couple of years from building their signature big-box stores to rolling out emporiums with smaller footprints in more urban areas.

Lynne Sperling, owner of Los Angeles–area LS Consulting & Management and a veteran analyst of major retail, said that this retail sector has become tougher. “To attract consumers they have to have the right product at the right value. They have to provide a reason to come to those stores. Department stores need to change in how they appeal to the customers. They can’t say, ‘Here I am. Come and get it,’” she said.

Trend-driven

Popular items at the market included jeans designed to lift the wearer’s bottom. YMI’s Wanna Betta Butt? jean has developed a big reorder business of the jean with a lift, said David Vered, YMI’s president. He forecast that his sales would double over last year.

The unlikely novelty item, the ugly Christmas sweater, has become really popular for Fall 2014, Fade to Pink’s Combs said.

“A couple of accounts have asked, ‘Can you make them uglier?’” she said. “It is hard to keep them ugly but cute.”

Sweaters, maxi dresses and dresses with embellishments have been big sellers, said Rhapsody’s Kim.

With additional reporting by Alison A. Nieder