It isn’t easy to sum up the last year in the men’s business. Depending on whom you ask and what you focus on it could be the year we realized the recession wasn’t over yet or the year business started turning around again. Big price increases caused some worry, but most consumers weren’t surprised and didn’t let that deter shopping. Inventories, which were a big problem for some major retailers a year or two ago, were kept in line.
But some companies expanded while others contracted. Many shuffled their executives. To try to get a better handle on 2011, here are some of our top stories.
Store closings
Gap Inc. announced in October that it would close 200 of its nearly 900 Gap stores by 2013, a move that the company said would amount to “a 34 percent decrease in the Gap specialty store fleet when compared to the end of 2007.” Gap Inc.’s growth has been outside the U.S.; over the last five years the retailer has expanded into 27 new countries. In the U.S., falling same-store sales have been plaguing Gap Inc.’s Gap, Banana Republic and Old Navy businesses.
Sears Holdings said at the end of December that it would close more than 100 Sears and Kmart stores. Apparel sales at Sears stores were flat and at Kmart apparel was down in the fourth quarter. In the beginning of 2011, Sears announced that it would be making a bigger investment in its apparel business, hiring Lana Cain Krauter as an SVP, president of Sears Apparel. Krauter was part of the “softer side of Sears” campaign back in the 90s and had worked for Goodys, Stage Stores and Bealls in the interim.
Store openings
JCPenney unveiled its new big & tall chain, The Foundry, in May with 10 stores averaging around 5,000 sq. ft. in Missouri and Texas.
It was an important year for the big & tall business in general with Casual Male Retail Group, our retailer of the year, rolling more out its Destination XL stores (the first of which opened in Las Vegas in August 2010). The DXL big & tall superstores combined the features and merchandise from CMRG’s Casual Male XL and Rochester Big & Tall businesses under one roof. The concept seems to be working for the retailer, despite its swinging to a Q3 loss in November.
Bankruptcy
The big bankruptcy in 2011 was Syms Clothing and its Filene’s Basement business. After reporting a wider loss (to $11.5 million) and falling sales in the second quarter, the retailer filed Chapter 11 in November.
American Apparel, the Los Angeles-based basics retailer, fought off bankruptcy rumors for much of 2011, even as its controversial CEO Dov Charney battled more sexual harassment lawsuits. American Apparel’s acting president, Tom Casey, who was brought in from Blockbuster to help CEO Charney get the company back on its feet in late 2010, resigned in November 2011. Marty Staff, the colorful former CEO of JA Apparel, joined American Apparel in March to help develop the company’s wholesale business, but he resigned in late October. By November, American Apparel reported that it was “encouraged” by a slimmer third quarter loss. In December, same-stores sales were up 10 percent. Bankruptcy fears averted? We’ll see in 2012.
Acquisitions
VF Corp bought Timberland for $2 billion in June, adding the outdoor apparel and footwear company to its North Face and Smartwool outdoor brands. VF CEO Eric Wiseman said the deal will bring VF’s total outdoor business to over 50 percent of their total revenue.
Chinese sourcing giant Li & Fung and its LF USA business announced a number of acquisitions and licenses in 2010 (a notable one was the $121 million Oxford Apparel deal), and that pace continued in 2011.
In February LF USA made a deal with the casual shoe brand Keds to develop a branded apparel collection. In May, LF USA signed a deal to acquire Hampshire Group’s designer women’s brands business including Designers Originals, Mercer Street Studio and Hampshire Studio, a move that Hampshire said allowed it to focus on its men’s business. And in August, Li & Fung announced that it was buying the children’s apparel company Fishman & Tobin.
Nat Nast, the premium sportswear brand, was acquired by the brothers Michael and David Haddad in October. President and CEO Larry DeParis orchestrated the sale and left the company. Co-founder Barbara Nast Saletan stepped in as president.
Deals
Brooks Brothers announced in January 2011 that it would begin wholesaling part of its range to Nordstrom. The deal was to include tailored clothing, furnishings, outerwear and some sportswear.
Premium denim brand Rock & Republic, which was acquired by VF Corp in 2010, surprised the market when it announced that it would be a Kohl’s exclusive beginning in spring 2012.
New leaders
During its tenth year in business, Robert Graham got a new chief executive, Michael Buckley, in June as Tengram Capital Partners, LLC made what it called “a significant financial investment” in the brand. Buckley came to Robert Graham from True Religion.
Better furnishings business Robert Talbott was in the news a lot last year. In February, it was rumored (later found to be true) that the company was up for sale, and that Hampshire Group was bidding. By April, CEO Richard Cohen, who seemed to have as many strong supporters as he had bitter detractors, was out and owner Robb Talbott had stepped in. He commented in-depth on all the changes in an interview a couple days later. By July, Talbott had hired Robert Corliss (pictured above) as the new CEO.
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