Sales of apparel are up 1.4 percent as of the 12 months ending April 2011, and while there are signs of growth in several channels, double-digit growth is seen in the factory outlet and warehouse club channels, according to market research company The NPD Group Inc. (Port Washington, N.Y.).
“Consumers are looking for brands they either already have, or that they trust. They want products that are tried and trusted and they don't mind spending money on them,” says Marshal Cohen, chief industry analyst, The NPD Group.
The specialty stores channel grew by 5 percent during this time period with the biggest contribution coming from sports specialty stores. Sales in U.S. department stores grew 2.5 percent in the 12 months ending April 2011, compared to the same 12 months ending in April 2010, during which time they posted a decline of 7.8 percent.
“This is a complete reversal of fortune,” says Cohen. “I think that department stores are beginning to actually get the timing of merchandise more in line with what consumers want and when they want it.”
The mass merchant channel is the only channel posting a decline for this time period. Sales in that channel are down 7.5 percent.
“Consumers are shopping less and less in this channel, and it's a big loss of momentum they gained during the heat of the recession,” says Cohen. “Even by promoting value, which in their words is 'shop here, we have the lowest price,' consumers have migrated away from this 'lowest price' message to 'better value.'”