TOTAL US RETAIL SALES ALL OUTLETS (Cold Weather Only)
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$ Millions |
| Projected 2007 |
495.7 |
| 2006 |
486.0 |
| 2005 |
476.5 |
| 2004 |
441.2 |
| 2003 |
450.2 |
2006 COLD WEATHER OPERATING STATISTICS AND AVERAGE RETAIL PRICEPOINTS
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|
Department Stores |
Mass Retailers |
| Initial Markup |
58-60% |
58-60% |
| Gross Margin |
48% |
48% |
| Annual Turn |
2x |
2x |
| Avg. Retail |
$26 |
$12 |
2006 COLD WEATHER MARKET SHARE BY RETAIL OUTLET
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|
% Of Total U.S. Retail Sales |
$ Millions |
| Department Stores |
28% |
$111.35 |
| Specialty Dept. Stores |
18% |
$57.65 |
| Specialty Chains |
20% |
$67.38 |
| Mass Retailers |
24% |
$134.20 |
| Other (Flea Market and Vintage Stores) |
10% |
$115.42 |
| Total |
100% |
$476.46 |
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Cold Weather Accessories: 2007 Key Retail Trends
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With the increased prevalence of fashion, function became almost secondary as a selling point for cold weather accessories. This was especially reassuring for retailers, who were able to count on cold weather sales regardless of the warmer forecast.
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That said, some companies nonetheless relied on professional “climate consultants” to help them better assess delivery and production schedules, based on the increased unpredictability of weather patterns.
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Similar to leggings in the casual legwear classification, accessories outerwear (a.k.a. "sweater coats" or "sweater wraps") became a key item within the cold weather classification. Priced less expensively than its apparel counterparts (averaging at $100 retail, depending upon materials), this category has sold successfully on mainfloors at moderate and mid-tier department stores around the country.
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Coordinating sets continued to hold their own as gift items for fourth quarter (particularly in cashmere, and when marketed with an "affordable luxury" approach). Nevertheless, fashion customers preferred to "mix and match" cold weather accessories with varying patterns and colors.
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Classic, vintage-style mufflers with a preppy twist were key items for the back-to-school season. Other key "items" included the beret (in chunky knits, angora, flannel and fur variations), as well as novelty gloves
(including fingerless and "pop-top" versions).
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For leather gloves specifically, long lengths (even above the elbow) sold best among fashion consumers, and coordinated well with shorter-length coat sleeves. Patent surfaces, zipper details and new neutral colors (including green and gray) added interest to basic brown and black—further establishing gloves as fashion items.
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Luxury materials like cashmere and fur trim sold successfully throughout the entire classfication—both as gift items and self-purchases.
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Cross-merchandising helped boost sales for the classification across retail channels. Traditional department stores strategically outposted cold weather accessories among their outerwear offerings, while e-tailers presented cold weather fashion items as promotional "pop-ups" with outerwear purchases.
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E-tailers also offered consumers convenient "buy-now" options for cold weather merchandise—particularly appropriate for late January, February and sometimes even March, when the weather is chilly and department stores have moved on to resort merchandise.
Rainwear: 2007 Key Retail Trends
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Encompassing rain jackets, hats and boots, along with umbrellas, the rainwear classification is no longer merely commodity-driven and relegated to drugstores. An overall fashion influence—incorporating trendy prints and bright colors, plus metallic surfaces and materials—has helped boost sales across the board.
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As with cold weather accessories, fashion consumers favor an "item"-driven merchandising approach rather than fully coordinated looks. Rain boots with novelty patterns are almost basics, rather than "items," by now.
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Folding umbrellas continue to outsell stick silhouettes, primarily on account of their size and convenience.
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To create a cohesive presentation, retailers placed fashion rain hats, jackets and boots right alongside umbrellas on their mainfloors—rather than relegating them to the outerwear or footwear departments. Those that did reported stronger sales.
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