Fashion Industry Struggles Over Pricing

The article asks how long can manufacturers and retailers hold off raising prices? Instead, we’re of the belief that retailers will need to lower their merchandise margin expectations in today’s deflationary/promotional environment.

Fears Grow Over Pakistan Textiles

Check out the comment from JCP’s VP of Strategic Sourcing. She suggests that Pakistan’s flooding woes have forced companies to “use finer yarn counts, which are more expensive, and that makes you reconsider your country mix where you produce your fabric as well.”

Costco Targets Mall Space to Expand Its Reach

We’re curious how profitable these traditional mall locations are versus COST’s standard suburban stand-alone venue?

Holiday Outlook Dims as Economy Struggles

It’s always interesting to hear analysts and CEO’s providing bullish commentary re: future sales trends. In this article, several retailers and analysts are expecting +2% to +4% sales gains this Holiday season. SKS CEO Stephen Sadove believes that his company will report +MSD comps in the Holiday season. Our crystal ball is much more bearish. Lower margins will negatively impact the top-line and the sector will be lucky to report flattish sales versus LY.

Luring Shoppers to Stores Marketers Try Interactive Mirrors, Discounts via Scanners

While we’re entering a new age of retailing, it’s worth remembering that these new strategic initiatives don’t come cheap and will limit opportunities for profitability improvement.

Men’s Buyers See 10 to 15 Percent Price Hikes

The headline of the article says it all. But, notice the comment from a smallish retailer that suggests a bigger problem today is late deliveries that are forcing him to plan further in advance to avoid air shipment (a much bigger impact than higher cotton prices).

In His Own Words: Dov Charney

Atypically thoughtful commentary from Mr. Charney.

South Africa Halts Exports of Raw Wool to China

Do you know what Rift Valley Fever is? Retailers around the world are becoming familiar with the recent outbreak of this disease in South Africa.

Apparel Retailers Check Out Prices

SSI CEO is skeptical that the consumer will stomach higher pricing.

Profiling the Value Retailers

Great resource for someone that wants to better understand the global value chains.

Tony Retailers Hope Outlets Fuel Sales

Outlets continue to attract more retailers to the venue.

Penney Weaves New Fast-Fashion Line

JCP management loves to talk about how fashionable they’ve become. Yet, every month this year they disclose in their sales recording how strong the men’s apparel and shoe businesses are performing versus LY.

Celebrity, Proprietary Brands Squeeze Independent Labels

Department stores have clearly gotten the message that their product needs to be differentiated versus their peers.

Sephora Bets Its Bottom Dollar on Denim

Could they have waited any longer to jump into the premium denim biz? Good grief. This would have been a great idea 2-3 years ago.

Targeting Younger Buyers, Liz Claiborne Hits Snag

Liz Claiborne partners with JCP. Two peas in a pod.

Economic Indicator: Even Cheaper Knockoffs

Do you think that you’re getting a deal online? Think again.

Big Investors Fear Deflation

Teen retailers squawked the loudest yesterday re: merchandise margin pressure in July 2010. Yet, specialty apparel is still benefiting from lower sourcing costs than last year (not the case going forward). This math suggests deflation in the teen sector today.

Gap Gearing Up Denim

Let’s do the math. 40% of a typical Gap adult store is stocked with denim. Theoretically, denim is a strong performer for the chain. Yet, despite what are close to the easiest comparisons over the past 5 years, comp store sales for the chain are still much weaker than their peers. That tells you just how bad the other 60% of the store is performing.

Tepid July Comps Raise Concerns

It’s going to be an ugly back half of the year.

Russia Boosts Security on Grain Stocks

Wheat becomes the latest commodity to spike higher (follows coffee).