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Jul 31, 2009 by Mark MaierIf you have clothing retailers on your sales list, you know that they have been challenged with consumers either not buying at all and making due or with moving to lower cost alternatives. The industry is now making a move as reported in Radio Sales Today's article "Apparel Retailers Highlight Accessories" to move the sales needle....
"Retailers said jewelry, belts and scarves remain impulse-purchases that don't require a lot of budgeting, unlike a new wardrobe. "It's a little bit of a candy moment," says Jenna Lyons, J.Crew's creative director. "You don't have to try it on. You can just take it to the cash register."
Jewelry and bags can yield as much as double the 40 percent profit margins of apparel, though both vary greatly. The goods take up less space and have more of a timeless appeal, which helps retailers avoid the types of costly markdowns that have hurt results this year. Ed Bucciarelli, chief executive of Limited's Henri Bendel unit, describes the category as "season-less...which obviously speaks to the profit."
And sales are still growing. Women's accessory sales by units for the three months ended April 30 were up 2 percent from a year earlier, according to market-research firm NPD Group. Women's jewelry-item sales were up 5 percent, and men's and women's watches and sunglasses were up 11 percent and 5 percent, respectively. By contrast, women's apparel sales in units were down about 5.6 percent.
There are signs shoppers are willing to spend. More than a third of respondents in a Shopping Habits Survey conducted by Shop It To Me, an online personal shopping service, said they were "still splurging" on shoes, and nearly a quarter said the same of handbags. Just 15 percent of the 940 respondents said they were still splurging on work clothing."
This is a great seeding article and it may be time to come up with an accessory promotion targeted to help grow this profit center for your clients.
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