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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



2008 OPERATING STATISTICS AND AVERAGE RETAIL PRICEPOINTS
Department Stores Mass Retailers
Initial Markup 55% 55-58%
Gross Margin 45% 45-48%
Annual Turns 3x 3.5x
Avg. Retail
Sheers
$6-8 3.50-$4
Avg. Retail
Tights
$12 $5
Avg. Retail
Socks
$6 $3






Casual Legwear: 2008 Key Retail Trends

  • Legwear maintained its “dependable performer” status. Customers traditionally view legwear as a fashionable and affordable way to update a wardrobe and freshen a look, strengthening its position among items that are “recession-proof.”

  • Leggings continued to sell well—both for spring/summer and fall/winter, adapted according to density of knits and materials. Even celebrities such as Lindsay Lohan were not only wearing leggings but also launching their own legging lines. Overall, novelty details helped lift leggings sales, as did ’80sera stirrup styles.

  • Designer collaborations and placement helped heighten the legwear classification’s profile. HUE again appeared on designer runways during New York’s fall Fashion Week, and also offered capsule collections from top fashion designers.

  • Beyond fashion, functionality remained a key selling point—the more innovative, the better. Figure-fixing styles such as Spanx’s High-Waisted Tights continued to sell successfully, as did socks that stimulate circulation for travelers and those with graduated compression features. A number of manufacturers offered their versions of shaping hosiery.

  • In silhouettes, key trends included tights (sheer textured versions), over-the-knee socks and knee-highs, as well as leg warmers. Once again, microfiber often outperformed wool at retail—largely due to its softness, warmth, washability and color retention, not to mention lower cost. Luxury fibers such as angora and cashmere enjoyed “affordable luxury” status and sales success, especially for fourth quarter.

  • Color was another strong selling point. Besides basic black, shades of blue, purple, berry and gray figured prominently in the classification’s sales statistics. Also popular among fashion customers last fall were ornate paisley as well as geometric patterns.

  • In addition to patterns, texture continued as a key sales element—particularly with angora and/or cashmere fabrications, as well as openwork in fashion styles.

  • Microfiber and knitted slipper socks continued to sell well—not only because of their soft, cozy appeal, but also because of double exposure, consumers usually find them in both the legwear and intimate apparel departments. Similar to small leathergoods, slipper socks remain popular as both self- and gift purchases, especially for fourth quarter.

  • Slipper socks also gained attention for offering their own innovative functional elements—such as aromatherapy and moisturizing features.

  • As one of the first classifications to “go green,” legwear continues to integrate organic cotton and bamboo (helping to wick moisture and keep feet dry). Both organic wool and corn fibers also gained popularity in terms of eco-friendly legwear.

  • Novelty and conversational prints continued to sell well for the holiday season—not only as gift items, but also as selfpurchases. Beyond fourth quarter, socks for Valentine’s Day, St. Patrick’s Day, Easter and Halloween remained solid performers.

  • The continuation of multiple-purchase pricing strategies—such as 3 pairs for $12 or $15—helped encourage multiple sales (mainly as replenishment items) amid ever increasing consumer costconsciousness.

  • As a subcategory, items such as foot/toe covers, insole liners and adhesive cushions retained their utilitarian appeal. Often crossmerchandised within footwear departments, they are designed as multiple purchases (3 pairs for $12 or $15, for example). Beyond neutral palettes, many styles stepped up fashion themes with vibrant colors, prints and patterns and lace details.

Sheer Legwear: 2008 Key Retail Trends

  • Sheer hosiery gained momentum through increased designer exposure on runways. Overall, the category continues to increase its perception as a must-have item in terms of fashion and projecting a professional image.

  • Yet again, black stood out as the best-selling color across the board, followed closely by ultra-sheer nudes which most closely match natural skin tones.

  • Niche categories that gained attention in sheers were multicultural in nature (complementing a variety of skin tones). Caffeine-infused and/or anti-cellulite styles offered graduated compression features.

  • While fishnet styles injected a slight fashion update with wider weaves, black continued its best-selling-color dominance in this category as well.


2008 HOSIERY SALES
DOLLAR VOLUMES IN MILLIONS (DEPT. STORES ONLY)
*
2006 2007 2008
Pantyhose $738 $756 $756
Stockings $164.8 $168.9 $168.9
Trouser Socks $272 $276.7 $276.7
Tights $136.4 $144.5 $150.3
Socks $1.55 billion $1.64 billion $1.70 billion
*SUBTOTAL $2.85 billion $2.98 billion $3.05 billion
**GRAND TOTAL $5.0 billion $5.2 billion** $5.3 billion**
**Includes Mass Retailer $ Volumes (2007: $2.2 Billion; 2008: $2.25 Billion)




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