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BIG MARKETS

Plus-Size Apparel Chain Ashley Stewart Fits Into The Lifestyles Of Urban Women

By Molly Knight

As Americans get bigger, so do plus-size clothing chains, it seems. One of these, Secaucus, N.J.-based Ashley Stewart, now has 200 stores in 28 states but plans to open 40 new ones this year and an additional 40 next year, primarily in urban areas. Of those new ones, about 25 will go into shopping centers. “Our core customer is an African-American woman in large cities,” said Donald Dust, executive vice president of operations at Urban Brands, Ashley Stewart’s parent company. “We’re bringing these stores where she lives, which is primarily an urban area. Accessibility is everything.”

The new units will mirror the layout of the existing stores and be about the same size: 4,000 square feet. “That kind of square footage works for the kind of merchandise we sell,” said Dust. “We’re a one-size business, so we don’t need a ton of space.”

Ashley Stewart’s founder, New York City-based developer Joseph Sitt, launched the concept in 1991 on the premise that the needs of urban consumers for affordable clothing were going unmet. He opened the chain’s first store in Harlem, seeing opportunity in the then-vacant lots in the poorer areas of New York City. Sitt sought to treat these customers with the kind of courtesy they rarely received.

“We don’t have any video cameras, or people standing on ladders by the door, or people checking bags as you leave,” said Dust. “We’ve always treated our customers with the respect and dignity they deserve. They respond by buying and by coming back.”

The chain’s rivals in these chosen realms have been few, because urban environments are dicey for most retailers, sources say. “Ashley Stewart doesn’t have a lot of competitors,” said Dr. Robert K. Passikoff, president of Brand Keys, a New York City-based retail consulting firm. “The last brand to resonate this well with typical urban consumers was probably Tommy Hilfiger. Hilfiger aimed its gear at black musicians and leveraged the heck out of that by giving black consumers apparel they could afford. Ashley Stewart is building up a presence in inner cities that’s really unmatched at this point. Sure, it competes with Lane Bryant and other plus-sized stores like that, but it’s hard to find Lane Bryant outside of your local suburban mall, and that doesn’t serve this customer well.”

Nor is the competitive picture likely to change very much anytime soon, even as the growth opportunities remain healthy. “There just aren’t as many players in the arena,” said Chanda Rowan, a spokeswoman for Chicago-based consumer research firm Mintel International. “In an urban environment, there is lots of room for growth.”

Well, urban nonwhite populations are certainly growing, and in more ways than one. According to the Centers for Disease Control, black and Hispanic women are more likely to be overweight than white women, for instance. And on a separate note, between 2000 and 2005 the black population in the U.S. grew by 6 percent, while the Hispanic population increased 18 percent. Further, it is estimated that blacks will account for about $965 billion of the national spending power by 2009. Yet, industry buzz about burgeoning Hispanic purchasing power (a projected $926 billion by the end of this year) has led to some neglect of the black consumer, some say. “The Hispanic-Latino demographic has been getting all the attention in the last few years within this industry,” said Passikoff. “That’s what the focus groups and panels are talking about: ‘How do we get this consumer?’ Black consumers have been there all along. It’s up to companies to find a way to reach out and entice them.”

Dust says Ashley Stewart lures consumers by following what he calls the golden rule of retail. “Every woman wants to buy clothes that make her feel good about herself,” said Dust. “We offer form-flattering, quality clothes for women who aren’t a size 2.”

If stats are any indication, Ashley Stewart is targeting the right woman. According to the CDC, black women are the most likely to be overweight or obese. In 1994 69 percent of them were considered overweight and 39 percent considered obese. In 2000 those had risen to 78 percent and 51 percent, respectively. Trends in the plus-size apparel market have shown similar growth. A Mintel study published in March 2006 says U.S. sales in this women’s segment rose 47 percent between 2000 and 2005. “The research has shown that Americans are more overweight now than ever,” said Rowan. “It’s up to companies like Ashley Stewart to cater to these women’s needs. The potential for profits is almost unparalleled.” Moreover, these women are willing to pay top dollar for clothes that make them look good and feel comfortable, Rowan says.

“These ladies used to have to hide behind unflattering clothing to cover their curves,” said Rowan. “But as these plus-size stores like Ashley Stewart and Lane Bryant emerge, it’s clear they offer customers fashion-forward clothes with beautiful, vibrant colors, and trendy denim and skirts that radiate their confidence and beauty.”

Rowan says the stigma of shopping at plus-size stores has all but evaporated. “Once upon a time, it was embarrassing for a woman to shop at one of these places,” said Rowan. “But these companies have been able to turn that perception around. Shopping there has become like shopping at any other department store. It’s become mainstream.”

Not that the retailers should take all the credit. “Oprah [Winfrey] is probably the most universally loved woman in America, and she’s always admitted she’s never going to be a size 2 or 4,” said Rowan. “She’s been up and down in her dieting for years, and her audience sees her on the show always in fashion, always confident, and they think to themselves, ‘Hey, if Oprah can be heavier and look great in jeans and a classy top, why can’t I?’ She is who they look to.”

She is also whom they mimic, sources say. “We do a great denim business and a great top business,” said Dust. “Those are our main two categories. Women are very into the embellished novelty denim and fashionable tops. Right now that’s who we are, and that’s what we’re doing.”

And Ashley Stewart is careful not to stray. “We stick with 15-to-55-year-old women, and we don’t go after juniors,” said Dust. “We know who our customer is and what she wants. We strive for brand loyalty, and we don’t think we’re going to get that from a whimsical teen-ager.”

On the company Web site, the spring line preview lists denim at $19.99 and up, linen tops and pants at $24 and up, and wrap shirts starting at $29.

“They’re doing the right thing in making this stuff affordable,” said Passikoff. “They know who they’re customer is, and they’re not pricing anyone out. It’s smart, and it’s what will help them continue to grow.”

Ashley Stewart is planning aggressive expansion in the U.S. but not overseas, Dust says. And that may suffice: With Americans getting heavier, it seems Ashley Stewart will have more than enough stateside business for years to come.