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Shopping Centers Today -> December 2002
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NOW IT’S HIS TURN
After success with women’s and children’s wear, Talbots turns to men
By Kimberly Pfaff
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What’s next for an apparel retailer after it has successfully tapped into the women’s, children’s and plus-size markets? For classic clothing retailer Talbots, the answer is simple: men.
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The Hingham, Mass.-based company unveiled its first line of men’s apparel this fall and plans to open six men’s stores next year.
“It’s a brilliant move, and it addresses that retail need to just sell one more thing,” said Candace Corlett, a principal at WSL Strategic Retail, a New York City-based retail consulting firm. “If you can sell each customer just one more thing, it makes for a significant impact on total sales.”
Women already buy much of the clothing for their male partners, so they are expected to be important customers in these stores, especially at first.
Talbots has decided that it has captured the full universe of its female customers and that to expand that base would require much more than simply offering existing customers something extra. In this case, the chain must offer something for their menfolk, Corlett said.
In a classic maneuver for Talbots, the retailer introduced its men’s line through a 24-page men’s catalog mailed in October that was packaged with its core holiday catalog.
“It’s our typical way of operating,” said Margery Myers, a Talbots spokeswoman. “We’ll test first in a catalog to get our initial read on customer response, then we’ll move onto retail locations after that.”
Talbots is adept when it comes to research, said Lois Huff, vice president of soft goods at Retail Forward, a Columbus, Ohio-based market research firm.
She noted that Talbots is particularly proficient at using its catalogs to identify opportunities for new units. “They’ll figure out where it makes sense to open stores.”
The initial men’s assortment of 55 stockkeeping units features such “refined classics” for fall as cashmere V-neck sweaters, sports jackets, plaid cotton shirts with European styling, microfiber quilted barn jackets and roomy trousers offering a forgiving fit.
“It’s a little bit of a tasting menu,” said Myers, noting that a more extensive assortment is set for the spring men’s store rollout. The company plans to open three 4,000-square-foot men’s stores in the spring and another three in the fall. As for locations, Myers would reveal only that the company is looking “east of the Mississippi.”
An additional six to nine men’s stores are planned for 2004, followed possibly by what the company calls a “serious rollout” in 2005.
“We are very patient and methodical in our way of operating, and if we need to adjust that to go slower or faster, we will,” Myers said. “But ultimately, we wouldn’t launch it if we didn’t think it had the potential for upwards of 100 stores down the road.”
Don’t expect to see men’s clothes in Talbots’ existing women’s stores, however. They’re going next door.
“We feel it’s important that [men] have a separate door, their own space,” said Myers. “We may decide ultimately to connect the two, so the customer can go between the two shops.”
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| The classic apparel retailer has catered to women, children and plus-size customers, both through its stores and its catalog. Men’s clothes appeared in its catalog this fall, and six men’s stores will open in the coming year. |
Brand extensions are nothing new for the classic clothier. Since it went public in 1993, Talbots has successfully opened separate stores for children, petites and plus-size women. The company currently operates 862 stores in Britain, Canada and the United States and will have about 886 by the end of fiscal 2002.
Talbots’ earnings increased 10 percent last year to $127 million, with a 1 percent gain in sales to $1.61 billion. Still, though largely considered a bright spot on the retail horizon in recent years, the company has been experiencing some down periods. July comparable-store sales decreased 19 percent, August comps were down 4.1 percent, and September’s declined 6.1 percent.
By branching into men’s wear, Talbots is also tapping into an underserved retail niche — rampant consolidation in the male fashion segment has left relatively few players.
“What they’re doing is filling a genuine need in the marketplace today,” said Ian Thomas, president of Vancouver, British Columbia-based Thomas Consulting. “There’s an increasing void in the selection of men’s fashion stores.” Men’s apparel manufacturers currently rely on the department stores for their marketing and sales, he said.
Developers say Talbots’ move is good for malls looking to entice more shoppers.
“The opportunity for men’s apparel in this country in the specialty store arena is absolutely huge,” said David Weinert, group vice president of leasing at Taubman Centers. “For 10 years, there has been very little in terms of men’s specialty stores to choose from.”
Talbots’ reputation will also help bring success to the initiative, he added. “Talbots is a very important name in this business that has a lot of brand identity. They’re smart to parlay that into another business.”
With 24 Talbots stores in its malls, Taubman has the retailer in about three-quarters of its portfolio.
“We do a ton of business with them, and I very much look forward to doing men’s deals with their company,” Weinert said. “We’ve got a number of things on the table that we’re discussing with them. If they’re going to be in the men’s apparel business, we’re going to do business with them in men’s apparel.”
Of course, even for an established apparel brand, venturing into uncharted territory — particularly across gender lines — can be risky. While some brands, such as Donna Karan and Liz Claiborne, have successfully made the transition into men’s wear, others, including Anne Klein and Adrienne Vittadini, have not. But after conducting extensive research and focus groups, Talbots said it found widespread acceptance of the idea.
“People associate us with classic styling, high quality and a high service level,” Myers said. “Those are things that are valued among our audience. So we’re going into it with a strong foundation for the brand.”
It also helps that the majority of shoppers in upscale men’s stores are women, according to statistics, which bodes well for Talbots, with its loyal female following.
“We believe our initial customer will be primarily our existing female customer, who knows the brand, loves Talbots, already shops here and will have an initial inclination for trying the Talbots men’s area,” Myers noted. “We think she’ll lead the brand, introduce it to her counterpart, and it will grow from there.”
Industry observers note that ultimately, for this brand extension to truly succeed, Talbots will have to win over men. Still, said Retail Forward’s Huff, “married women have a pretty high degree of influencing where men will go clothes shopping. And often, when men are purchasing clothing for themselves, their wives are with them.”
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