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2008 CENSUS REPORT

HANDBAGS | SMALL LEATHER GOODS | JEWELRY | WATCHES | LEGWEAR | SLIPPERS & CASUAL FOOTWEAR
BELTS | EYEWEAR & READERS | SCARVES & WRAPS | COLD WEATHER/RAINWEAR | HATS/HAIRGOODS | CENSUS MAIN



TOTAL US RETAIL SALES
ALL OUTLETS

$ Millions
Projected 2009 657.66
2008 678.0
2007 691.8
2006 706.0
2005 654.4




2008 OPERATING STATISTICS AND AVERAGE RETAIL PRICEPOINTS
Department Stores Mass Retailers
Initial Markup 58% 60%
Gross Margins 45-47% 42%
Annual Turn 2.5x 3x
Avg. Retail $26-30 $15




2008 MARKET SHARE BY RETAIL OUTLET
% Of Total U.S. Retail Sales $ Millions
Department Stores 25% $150.78
Specialty Dept. Stores 12% $70.58
Specialty Chains 14% $80.68
Mass Retailers 36% $227.89
All Other 13% $148.08
Total 100% $678.01



Belts: 2008 Key Retail Trends

  • Belts didn’t have a great year, as fashion accessories buyers funneled more dollars into hats and scarves in 2008 and consumers “wrapped their necks” instead of their waists.

  • Belts have also proven difficult to merchandise in the store, a complaint heard by retailers who note they sell best when displayed on a mannequin.

  • Belts also took a hit from ready-to-wear, which featured lots of dresses. That said, belts did sell as fashion statements in many cases, perking up a short sweater dress with leggings and boots.

  • Stretch was a winner, in various incarnations. Wide (about 3 inches) stretch belts with front interest such as interlocking pieces were simple and chic. Stretch belts were worn to accentuate the body and their versatility allowed for various positioning. Stretch also helped keep pricepoints down—a growing issue in the belt classification.

  • For one accessory chain, basic belts outperformed fashion and color. Despite stocking beautiful plums and purples, browns and blacks sold best in jean belts, while skinny snake also sold best in black. Others reported purple and red as strong colors.

  • Skinnies were big for fall, in 3/8-inch and 1/2-inch widths. Snake and exotic skins captured what was happening in the handbag market, while skinny metal stretch was slinky and sexy.

  • The Under $100 category became important, even for higher-end manufacturers and retailers. The $24 and $48 pricepoints also did well.

  • In fashion looks, double- and triple- buckles on wide belts were popular.

  • Jean belts are getting cleaned up, without all the heavy studs and grommets. This segment of the market is returning to value.

  • Covered belt buckles offered a clean look with added dimension, and this trend will continue into ‘09 with new shapes and treatments.

  • Peace sign buckles and plaques captured the hippie trend, and will continue into ’09.

  • Bold, cleaned-up burnished metal buckles emerged as a fashion trend, particularly with belts worn over sweaters and jackets, paired with jeans—a nod to retro styling.

 





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