2018 Top 100 Retailers Power Players : Premium Apparel

2018 Top 100 Retailers Power Players : Premium Apparel

https://stores.org/2018/06/28/2018-top-100-retailers-power-players-premium-apparel/

 

〈Sales No. 1 Macy's〉

 

 

The deflationary cycle that has plagued apparel prices for several years was punctured by a spike this year that saw the highest monthly increase since 1990, according to the Consumer Price Index. The U.S. Department of Labor reported a record 3 percent increase in January.

 

“There’s a rebound in some of the up-market retailers,” says Craig Johnson, head of Customer Growth Partners. “When you get stronger performance from up-market retailers, you get higher price points that are selling and that moves up the nominal price point for apparel.”

 

L Brands is optimistic, and it isn’t just relief from depressed prices, however ephemeral that might be. As chief executive, Leslie Wexner oversees the teen brand Pink as well as the Victoria’s Secret and Bath & Body Works chains, where ecommerce accounts for about one-fifth of total sales. “If the store environment is exciting, I’m convinced people want to go to the store,” Wexner says. L Brands spends about 70 percent of its capital budget building new stores and remodeling older units; despite Wexner’s enthusiasm, there are skeptics and doubters.

 

“They likely need to close more of their stores over time,” says David Berman of Durban Capital. “It is one of the best-run retailers, but they are fighting against the tide.”

 

Gap is pretty much in the same boat as L Brands, but without the vision of a chief executive who has been leading things for more than 50 years. Corporately, Gap is shuttering units carrying the Gap and Banana Republic banners while continuing to open stores for the Old Navy and Athleta brands. The openings and closings will give Gap a net of about 70 new stores over the next three years, the company said in a statement