August 2008

Extra

Apparel Sales Weakening?

With the sagging economy on the minds of many, a new report from the National Retail Federation shows that U.S. apparel sales fell 9% in year-over-year sales during the first quarter of 2008. The drop was led by outerwear, which slumped by 16%, and denim, which fell by 5%. Total transactions were up by 15%, says the report, but unit sales and pricing also took a tumble.

The drop in sales hasn’t necessarily translated to the corporate market, though, says Marty Ostendorf, vice president of TSC Apparel (asi/90518). The company’s sales in dollars and dozens are up, though buyers are moving from twills and sport shirts into basic tees. “The low end of apparel – T-shirts, low-end fleece, inexpensive headwear – is having a surge right now,” he says. “I think what has happened is that the dollars being spent by companies promoting themselves is being taken away from print advertising and media, and being put into the lower-end promotions.”

Another industry supplier, Heritage Sportswear Inc. (asi/60582), which sells to smaller retailers and decorators, in addition to distributors and uniform programs, also has seen no effect. “Our sales are outstanding,” says Jerry Jurden, president. “Over a two-year period we had a 35% to 40% increase. The promotional business is growing much faster than other segments for us. If our customers are feeling economic woes, I am thrilled to death, because when it’s over we will do extremely well.”