Clothing Stores Adjust for Recession-Weary Women

By Barbara Thau

WeNews correspondent

Friday, April 2, 2010

Women's clothing retailers are making bearish, long-term bets on the longevity of frugal shoppers in a cash-strapped, uncertain economy. "The overbuying mentality is gone," says the president of retail consultancy.

Shoppers at Target's Manhattan pop-up store. (WOMENSENEWS)--Shop till you drop? That's so 2006.

Retailers are crafting marketing and merchandising campaigns around the new normal, making a bid for female shoppers still shell-shocked by the biggest economic downturn since The Great Depression.

From launching new budget versions of designer collections for spring to expanding their discount outlet stores, retailers have taken note that a return to pre-recession spending levels is unlikely, sources say.

Women will remain cautious about spending this year, says a recent ShopperScape survey by Retail Forward, a retail consultancy based in Columbus, Ohio. More than half will limit their purchases to replacing worn out items. Women also plan to "trade down" the clothing, accessories and shoes they'll purchase, opting for less-expensive brands, the survey says. The results are based on women of all ages and income groups who identify themselves as the primary household shopper.

"Until shoppers recognize job and income gains, the recession is not necessarily over for them," said Kelly Tackett, senior apparel analyst for Retail Forward.

Retail sales of women's apparel dropped 4.9 percent in 2009 from 2008, and fell 2.8 percent in 2008 from 2007, according to the NPD Group, a market research firm based in Port Washington, N.Y.

"The overbuying mentality we think is gone," said Craig Johnson, president of the retail consultancy and market research firm Customer Growth Partners, based in New Canaan, Conn. "The consumer is much smarter and savvier, much more judicious and more circumspect. They will go for value retailers and retailers that are offering exclusive value."

Highlighting Replacement Items

Retailers are highlighting wardrobe replacement items--as opposed to complete outfits--in their advertising messages and working with suppliers to cook up lower-priced lines.

It's not new for upscale designers to create mass market versions of their apparel (think Target), but that trend has heated up this spring.

Macy's, a retailer with headquarters in Cincinnati, just rolled out an exclusive Ellen Tracy line, marking the first time the "aspirational" fashion brand will offer clothing at affordable prices--retailing from $30 to $150 versus $70 to $1,500.

At the same time, Target launched its Liberty for London collection, a lower-priced version of the upscale, British fashion and home line known for its bold floral prints.

"As the economy has gone south, we're more mindful to highlight the price component as consumers watch their budget," said Joshua Thomas, a Target spokesperson, who attended a recent press event at the temporary pop-up store the retailer erected in Manhattan to launch the line.

Prices for Liberty of London--which ties in with Target's "fashionably, frugal, just like you," marketing jingle--range from about $4 for a girl's headband set to $200 for a bicycle.