2006 OPERATING STATISTICS AND AVERAGE RETAIL PRICEPOINTS
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Department Stores |
Mass Retailers |
| Initial Markup |
55% |
58-60% |
| Gross Margin |
45% |
45-48% |
| Annual Turns |
3x |
3.5x |
Avg. Retail Sheers |
$6-8 |
3.50-$4 |
Avg. Retail Tights |
$10 |
$6 |
Avg. Retail Socks |
$5 |
$3 |
2006 HOSIERY SALES DOLLAR VOLUMES IN MILLIONS (DEPT. STORES)
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|
2005 |
2006/b> |
| Pantyhose |
$743.7 |
5$738.0 |
| Stockings |
$165.3 |
$164.8 |
| Trouser Socks |
$272.1 |
$270.0 |
| Tights |
$135.6 |
$136.4 |
| Socks |
$1.6 (Billion) |
$1.55 (Billion) |
| Total |
$2.9 (Billion) |
$2.85 (Billion) |
| (Note: 2006 Mass Retailer Total approximately $2.1 Billion) |
| Grand Total: $5.0 Billion |
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Watches: 2007 Key Retail Trends
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This category performed favorably overall, although some retailers reported flat comp sales. Apparel and footwear trends helped boost sales of tights in particular, as they complemented fall’s popular dresses and booties.
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Leggings continued to sell well for all age groups, both for spring/summer and fall/winter, adapted accordingly by density of knits and materials.
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Designer collaborations and product launches added interest and a heightened sense of fashion to the legwear classification. Valentino and Zac Posen each created capsule collections for Wolford (as did Tracy Reese for HUE), while Betsey Johnson legwear re-launched via Leg Resource.
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Key fall trends were: cable and rib knits, marled yarns, herringbone and diagonal patterns, crochet knit socks layered over opaques, knee and over-the-knee lengths, foldover contrast cuffs, sweater-knit leg warmers, sueded surfaces, pointelle knits, angora blends, plus argyle, plaids and checks.
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Regarding materials, microfiber (a.k.a. "marshmallow" or peluche yarns) frequently outperformed wool at retail—largely due to its softness, warmth, washability and color retention. Neverthess, 100-percent cashmere and cashmere-blend socks were key fourth-quarter gift items.
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Legwear was one of the first classifications to adapt an "earth-friendly" approach, incorporating organic cotton and bamboo well before the "green" movement became mainstream. Bamboo is also known for its ability to wick away moisture (thereby keeping feet dry).
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Microfiber and knitted slipper socks sold well, not only for their soft, cozy appeal, but because they're sold in both the legwear and intimate apparel departments (i.e., cross-merchandised with sleepwear). Slipper socks remained popular as both self- and gift purchases.
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Texture continued as a key selling tool—particularly with angora and/or cashmere fabrications. Banded packaging offers tactile appeal, thereby enhancing sales. Optic patterns such as stripes, diamonds and swirls were popular for the fall season.
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Novelty and conversational prints with added embellishments continued
as holiday gift items as well as self-purchases.
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For basic socks, multiple-purchase pricing such as
3 pairs for $12 or $15 helped encourage multiple sales (especially as replenishment items).
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As a subcategory, foot/toe covers, insole liners and adhesive cushions boosted sales for the classification collectively. Often cross-merchandised within footwear departments, they're designed as multiple purchases (3 pairs for $12 or $15 price structuring, for example). Rather than just neutrals, vibrant colors, prints and patterns infused a sense of fun.
Sheer Legwear: 2007 Key Retail Trends
- For the first time in a number of years, sheer hosiery sales actually increased through September 2007. Dollar volume jumped to $1,127,981, indicating a six-percent increase thus far for 2007 (as reported by The NPD Group). As NPD's chief industry analyst Marshal Cohen explains, average sheer hosiery pricepoints have increased by 10 percent, with consumers continually seeking out textures, patterns and novelty. He also credits retailers for the increase, due to their efforts in merchandising and displays of sheer hosiery—indicating that the category is no longer a mere basic commodity.
- The Hosiery Association also cites several key reasons for the uptick in sheer hosiery sales, including: designer exposure on runways generating increased consumer interest; newer products offering both fashion and function; and cost effectiveness of changing the look of an outfit via hosiery.
- Yet again, black stood out the best-selling color across the board. Black gained added interest through intricate lace patterns and shimmery treatments (the latter mostly for fourth quarter).
- Fishnet styles received a slight fashion update with wider weaves, although black continued as the best-selling color for this category as well.
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