At specialty retail this fall, the bucks are in the layers.
As teen and contemporary consumers pair textured tunics with tanks and Ts and add leggings under miniskirts to express their individual style, specialty retailers who offer the goods to build the layers likely will see better sales and profits, analysts said.
“Anytime the consumer has to buy more items to complete a trend, it’s a positive for retailers,” said Eric Beder, senior vice president of Brean Murray, Carret & Co.
With the silhouette transforming to include longer tops coupled with skinny jeans, this look lends itself toward layering, Beder explained. And instead of buying one top per outfit, consumers are purchasing two or three. Being able to leverage the layering trend is critical, Beder said.
“We believe the fashion-right players who can respond quickly to an ever-changing landscape and have the systems and brainpower to pinpoint and capitalize on trends will win, while slower organizations with limited ability to react and [an] ill-defined image will decline quicker,” Beder explained. “We believe the ‘Darwinian’ aspect of retailing will become even more stark for the remainder of 2006 and beyond.”
Meanwhile, analysts hope to see a pickup in September comps, as the weather becomes more favorable to layered wardrobes.
“A delay in [back-to-school] shopping, easy comparisons and more favorable [cooler] weather should help support business,” said Kimberly Greenberger, specialty apparel retailing analyst at Citigroup Global Markets Inc. “The biggest risk to September is continuing deterioration of denim sales, which is also likely to be a big negative for holiday sales.”
Abercrombie & Fitch’s denim business is one of the many in specialty retail that has been comping negatively in recent months. However, the company has been able to stay afloat due to regular deliveries of fresh and unique tops, Greenberger said in a report.
Teen specialty retailers such as American Eagle Outfitters and Aéropostale historically have stocked up on and promoted layering items such as tanks and camisoles in the spring and summer months; however, fall will be the first season this trend carries over into cooler-weather wardrobes.
“The whole layering trend has been knocking on doors for the last couple of years, but it seems like it will be front and center going into the fall season,” said Liz Pierce, senior vice president and lead retail analyst at Sanders Morris Harris.
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If the trend takes shape, it could be a catalyst to drive sales, not only in the teen sector but also for those serving the young/contemporary demographic, such as Bebe and Urban Outfitters, Pierce continued.
In order to promote the trend, retailers are displaying sweaters and skirts that depend on other layers to complete the style. And with the introduction of new catalogues, magazines and “catazines” such as Tween Brand and Justice’s, consumers are learning how to put the pieces together and interpret current trends.
Aside from tops, analysts predict leggings will be the biggest layering item for the fall, becoming a fashion statement all its own.
With Eighties-inspired apparel making a comeback, leggings will be an incremental item that the sector has not seen in past seasons, Greenberger said.
At The Children’s Place and Claire’s, an assortment of colored, textured and patterned leggings and tights are allowing skirts and summer dresses to be worn well into the fall.
“While sales are never dependent on one trend, leggings could be the icing on the cake,” Pierce said.