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2007 CENSUS REPORT

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



TOTAL US RETAIL SALES ALL OUTLETS*
$ Billions
Projected 2007 705.5
2006 685.0
2005 675.0
2004 661.4
2003 606.8





2006 OPERATING STATISTICS AND AVERAGE RETAIL PRICEPOINTS
Department Stores Mass Retailers
Initial Markup 60% 58%
Gross Margin 46-48% 45%
Annual Turn 2x 2x





2006 MARKET SHARE BY RETAIL OUTLET
% Of Total U.S. Retail Sales $ Millions
Department Stores 39% $250.2
Specialty Dept. Stores 10% $73.5
Specialty Chains 19% $130.3
Mass Retailers 22% $153.1
Other (Flea Market and Vintage Stores) 10% $77.9
Total 100% $685.0 million

Scarves & Wraps: 2007 Key Retail Trends

  • This overall category performed a bit better compared to the year prior, with certain items driving the classification. Climate change and extended warm-weather seasons also boosted this classification by offering increased opportunities for lightweight wraps and ruanas. Retailers who continually stocked lightweight fabrics in these items benefited from the warm weather and were able to sell them further into the year.


  • Wraps—including ruanas and capes—definitely drove the business, representing up to 70 to 90 of the department in many cases. For Fall ’07, houndstooth patterns captured the menswear trend, while wool and acrylic blends and acrylic knits with ruffled edges and borders added interest.


  • The day wrap was hugely important, driven by the success of dresses (particularly sleeveless and voluminous styles. Pashminas also made a comeback, largely due to dresses, becoming a staple at this point. Even ponchos continued to sell.


  • 2007 was also the year that department stores made stronger commitments to showcase full-scale, cross-category trends within fashion accessories departments, putting scarves/wraps in a broader, “total look” fashion context. This was a cue from specialty stores, who usually show how scarves work with apparel.


  • Retailers also put better product on the mainfloor, with a triple-digit tunics not unheard of in some cases (although one retailer stipulates that if it has sleeves, it can’t go on the mainfloor).


  • The beachwear category continued to grow, as trendy tunics and cover-ups offered versatility that took consumers “from sand to supper.” Ruched sundress looks, terrycloth and printed cotton and jersey were the drivers. Some retailers merchandised these on the mainfloor, but as the category grew, more shifted to swim departments.


  • Oversized squares—drapped, knotted and tied to form a cowl and embellished with fringe, knots or even chains—captured the hot look Balenciaga sent down its Fall ’07 runway. This look will continue strongly for ’08, particularly the 40-inch square. Airy cottons and sheer silks allow for multiple wrappings.


  • Printed scarves were mixed in 2007 (one manufacturer noted the worst sell-throughs in 10 years, blaming non-tailored looks like babydoll dresses and poufy sleeves), but retailers are optimistic about ’08, with increased fabric options especially at the higher-end.


  • While private label scarves and wraps continue at opening prices, designer brands—both corporate and licensed—boosted prices all levels.


  • Fall’s hottest wrap trend was the Indian-themed jacquard or “jamawar” shawl, featuring tonal colors and lots of paisleys.


  • For evening, retailers cited a rise in evening shawls, with embellishments such as sequins and beads selling well. Gray also came on as a strong hue.


  • For 2008, looks include bright, colorful graphics as well as earthy naturals. Ruanas will continue their strong performance, and other key looks will be “drapey” cardigans, neck wraps in soft, natural fibers, and trapeze jackets in linen and metallic materials.






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