Womens Clothing Industry Report Essay Example for Free

Womens habiliments Industry in vocalise EssayThis application includes establishments primarily engaged in the sell sale of a worldwide cables length of womens ready-to-wear dress. This phratry in any case includes establishments primarily engaged in the specialized retail sale of womens coats, suits, and dresses. exercise tailors primarily engaged in making womens clothing to individual order are classified in SIC 5699 Miscellaneous Apparel and Accessory Stores.Industry SnapshotIn 2005, $36.7 jillion was spent at break ins devoted exclusively to womens apparel, a jump of more(prenominal)(prenominal) than $2 one million million million from 2004 and more than $4 one thousand million from 2003. go the discounters, namely place and Wal-Mart, were continuing to do well, the more upscale stores were seeing a immature surge in fleeting. While consumer demand for luxury and high quality items was high, intimately of the purchases in this category were made for tho se items either from lower-priced brands or items on sale. In the mid-2000s, those employed by the industry were mostly working(a) as gross revenue associates, who are responsible for performing customer service and a variety of operative duties much(prenominal) as setting up displays and organizing stock.Store managers oversee gross revenue, operations, and personnel functions. Merchandisers work with the apparel manufacturers to consume apparel for the retailer and control merchandise expenses. According to the U.S. Census Bureau, womens clothing stores reported combined sales of $38.5 trillion in 2008. As the economy continued to struggle sales wing 7.6 percent to $35.6 cardinal in 2009. As sales declined, Womens clothing stores were adapting to the bring downturn by focusing on recession-friendly prices, and chess opening up more discount outlets. In fact, there were 345 outlet stores s new-fashionedd to open in 2011, according to the November 2009 Retail forward-movi ng report.Organization and StructureThe structure of the U.S. retail industry, including womens clothing stores, has changed probatoryly since the early 1990s, moving from a production-driven market to a consumer-driven market. Nontraditional retailers, such as discounters, off-priced stores, and factory outlets, fared well. Because of continuing competition from nontraditional retailers, department stores such as J.C. Penney and specialty stores such as TheLimited enlarged their focus on private labels. In the mid-1990s, consumers demanded more convenience and quicker service from growing no-store retail, particularly in direct-mail order, television, and online shopping.An Internet shopping field by Ernst Young LLP reported that the number of retailers selling online tripled in 1998 to 39 percent. The online market was estimated to reach $13 billion in sales at the end of 1999. The relationship between larger retailers and suppliers significantly step up because a growing n umber of retailers were taking on entrepreneurial roles traditionally performed by apparel producers. big retailers and direct-mail order companies were making decisions in areas such as product design, fabric endurance and procurement, and apparel production, which in turn influenced production scheduling, pricing, and delivery dates.Background and DevelopmentWomens clothing stores were introduced in Europe in the recent 1700sslightly later in the American coloniesat a time when productive capability, population, and prosperity allowed clothing production to escape out of the house and into the factory, and clothes to move into retail stores. Around this time, seamstresses began opening shops offer custom-made hats, dresses, cloaks, or other garments. These garments of the latest fashion were for those who could afford to hire out the work of stitching. Trading posts in the termination areas carried cloth and some off-the-rack apparel. The invention of the sewing machine, th e rise of mass production, and the proliferation of retail stores by the late nineteenth century led people first to sample and later to rely on ready-made clothing for sale as a reliable means of obtaining fashionable clothing. In the 1890s, ready-to-wear clothing came into its own, and by the turn of the century ready-made womens wear was available in abundance in the joined States. By the 1920s, it was considered more fashionable to buy clothing from a store than to bring out it at home.For galore(postnominal) years, the department store and the downtown womens shop were the mainstays of womens wear retailing. Department stores offering a vast selection of goods and specialty stores catering to unique tastes dotted the urban landscape. For those with enough money, shopping became a social event. on with the growth of womens clothing retailing came the increase importance of fashion. The womensapparel industry establi overleap a voice in government through the National Retail F ederation (NRF), the trade group representing the entire spectrum of the nations retail industry. In the early and mid-1990s, the NRF lobbied the U.S. Congress on issues such as minimum wages and the proposed health oversee plan. The NRF was opposed to an increase in the minimum wage on the grounds that many retailers would have to culture down operations or fire staff to meet expenses with a higher wage base. In 1994, Womens Wear Daily reported that the NRF opposed the Clinton administrations proposed universal health reporting on the grounds that more than 700,000 jobs would have to be eliminated in all retailing.At that time exclusively 35 percent of retail workers received health care benefits. The NRF supported a plan that emphasized offering health coverage but did not require employers to pay for that coverage and allowed for the creation of purchasing pools for group insurance. Heading into the 21st century, dedicated womens stores faced renewed competition from alterna tive retail venues offering specialty or general line womens apparel in addition to other product lines. Sporting goods retailers were devising new strategies to increase womens apparel business. In 1995, womens apparel ranged from 10 percent to 40 percent of store merchandise. Sporting goods retailers aphorism strong potential in the womens apparel market. Retailers increase floor space to accommodate womens products set up womens departments increased stock of best-selling brands and held store events to draw more female customers. Department stores also responded to the increased demand for womens apparel and began repositioning themselves to win back the customers they had lost to more focused outlets like The possible action and The Limited.Such retailers as Bloomingdales and Dayton Hudson revamped the womens apparel collections. The large-sized womens clothing market grabbed the attention of clothing retailers in the mid-1990s with sales reach $20 billion and claiming 24.7 p ercent of the market. The key factors that influenced these sales were an increase in fashions featuring younger silhouettes and the use of recrudesce fabrics. Lane Bryant, a division of The Limited Inc., brought in more fashionable clothes and worked to change the acquaintance of large-size fashion. Our customer wants to wear the exact same fashion her skinny friends wear, noted Lane Bryants chief administrator Jill Dean in a 1999 Wall Street Journal interview. One of the hottest growth areas in retailingduring the late 1990s was discounting. Clothing retailers saw an opportunity to bring fashionable clothes at commonsense prices to the masses. In 2002, Target was the countrys third-largest discounter and a $40 billion division of the Dayton Hudson Corporation. Nearly 35 percent of Targets sales come from the clothing department. overaged Navy, a division of The Gap, was launched in 1994 to compete with stores like Sears and Target with this concept in mind.As the United State s initiated the war with Iraq in March of 2003, the U.S. economy remained soft and consumers remained cautious. As a result, the clothing industry reported sales numbers below those previously forecasted, down 6 to 7 percent rather than the anticipated 3 to 4 percent for the month. The retailers with the most successor least(prenominal) amount of declinewere those that offered moderate-priced, affordable sportswear that combined the right amount of fashion with value. By the end of 2003, the industry saw increased spending again, a trend that continued into 2004. garnishes, skirts, and tailored clothing all declined in overall sales and units sold, but increases were seen in lingerie, suits, swimwear, and knit shirts. Tops were hailed as the new accessory in 2005, and women were being bolder about choices in this division, while preferring more versatile, guileless apparel items in other categories such as slacks.The so-called career/casual market was on the upswing, as women loo ked for clothing that could easily make the transition from work to leisure. While fashion was important in the mid-2000s, so was the desire to simplify. Although higher-end, upscale items were increasing in demand, women still looked for the bargain, leading to an increase in the affordable luxury category as well. While overall spending was up, the average price per item was down. Retailers also continued to target secondary shoppers as a consistent source for revenues. Young consumers, who tend to have more disposable income than older shoppers, spend more money on clothing and are more conscious of fashion trends. In 2007, those junior shoppers were interested in buying dresses, as were most other women.According to a report by The NPD Group, revenues from sales of dresses increased 30.4 percent overall for the 12-month period ending in April 2007. For juniors, the jump was 53.3 percent, while the sales of misses dresses rose 33.1 percent and the sale of petite dresses 31.6 per cent. During that 12-month period, sales of womens apparel in general increased 5.1 percent. falterherto with positive signsin sales heading into the late 2000s, an uncertain economy had one of the stronger chains slimming down to improve profitability. Despite net sales that rose 2.3 percent in 2007 to approximately $2.4 billion, Ann Taylor Stores Corporation announce in January 2008 that it planned to close 117 stores from 2008 through 2010 as a restructuring of the business.Current ConditionsRetailers are crafting marketing and trade campaigns around the new normal, making a bid for female shoppers still shell-shocked by the biggest economic downturn since The Great Depression. Consequently, consumer spending patterns have been changing and will likely continue to evolve. The average consumer was shifting to few purchases. One market research firm that follows the industry reported sales of womens clothing fell 2.8 percent in 2008 and 4.9 percent in 2009. Industry watchers d ont see the downward trend changing anytime soon, especially since income levels were on the decline and the unemployment rate remained at high levels and apparel in general being a arbitrary purchase was suffering because of the weak economy.In one survey conducted by ShopperScape by Ohio-based Retail transport based on all age groups and income levels found over half of women shoppers will replace only their worn out clothing. Additionally, when it comes to buying clothing, shoes, and accessories the mentality was to trade down selecting the less expensive brands. Additionally, women shoppers were much more value oriented then in years past. The mentality to shop till you drop was at once labeled frugal shopper seeking out the less expensive designer replicas. Some womens clothing stores underwent significant restructuring downsizing throughout the late 2000s. One industry leader, Ann Taylor Stores including their LOFT stores shed 60 stores in 2008, followed by another 42 stores in 2009 with about another 72 announced to close in 2010. Of the estimated 174 store closures, half would be Ann Taylor Stores and about half would be LOFT stores.Industry LeadersSome of the leadership in the womens clothing store retail industry in the United States were The Gap, Inc., Limited Brands, Inc., Charming Shoppes, Inc., Talbots, Inc., Ann Taylor Stores Corporation, and the uniform Barn, Inc. The Gap, founded in 1969 by Don and Doris Fisher in San Francisco, hasbecome an international specialty retailer offering mens, womens, and childrens casual clothing and accessories. The Gap operated thousands of stores in six countries, including The Gap, GapKids, Baby Gap, GapBody, Banana Republic, and Old Navy Clothing Co. The Gap has stores in the United States, Japan, the United Kingdom, Canada, France, and Germany. The party reported $15.9 billion in revenues for 2007. The Gap grow quickly in the 1980s, purchasing the Banana Republic chain in 1983, launching GapKids, and B abyGap in 1986, and opening its first overseas store in London in 1987. By 1990 The Gap was one of the most successful apparel retailers and the second largest clothing brand in the United States. One of the biggest successes for The Gap was the Old Navy division, launched in 1994.In less than three years, The Gap opened 282 Old Navy stores and hit sales of $1 billion. Gap Online was introduced in November 1997. Limited Brands, Inc., the top U.S. womens apparel retailer, was founded in 1963. Limited Brands, Inc. shed its Express and The Limited apparel chains to focus on its Victorias Secret and Bath Body industrial plant stores. The company operated 2,900 specialty stores in North America in 2007. Sales for 2007 reached $10.7 billion. The leader in confirming size apparel, Charming Shoppes, Inc., had Fashion Bug and Catherines Plus Size stores, and had acquired Lane Bryant from Limited Brands in 2001. The company reported 2007 sales of $3.1 billion. Talbots, Inc., with nearly 1, 380 stores carrying traditional clothing and accessories, reported $2.2 billion in 2007 sales. Ann Taylor Stores, which catered to customers looking for upscale, classic clothing, reported 2007 sales of $2.4 billion. The Dress Barn catered to the professional woman on a budget.The company had $1.3 billion in 2007 sales. With 2,100 stores globally, The Gap reported revenues of $15.7 billion in 2008, falling to $14.1 billion in 2010 with 135,000 employees. Limited Brands, Inc. also saw their revenues decline fro $10.1 billion in 2008 to $8.6 billion in 2010 with 92,100 employees. From a reported $3 billion in sales for 2008, Charming Shoppes, Inc.s revenue plummeted to nearly $2.1 billion in 2010 with 27,000 employees. Talbots, Inc.s total number of stores fell from 1,380 in 2007 to 580 in 2010, as did its revenues from nearly $2.3 billion in 2008 to $1.2 billion in 2010 with 9,100 employees. Ann Taylor Stores reported revenues of $1.8 billion in 2010, well below the reported revenues of nearly $1.4 billion in 2008. The company employed18,800 people. The Dress barn reported revenues of $982 million in 2010.