Hi-Tech makes a splash with hydrophobic boot
28th August 2008 9:49

UK footwear brand Hi-Tec has posted a demonstration video on Youtube to support launching the trademarked 'ion-mask' waterproof technology on its boots.

It is billing the technology, which renders footwear either Waterproof (WPi) or Hydrophobic (HPi), as a "quantum leap in hydro management nano-technology".

By the look of this video clip, they are not far wide of the mark either, although tests on a pair of shoes might be rather more compelling than the seamless material samples used here.

Hi-Tec is launching ion-mask this autumn in its V-Lite Altitude Ultra WPi walking boot before extending it to boots, shoes and sandals.

Ion-mask, created by technology firm P2i, chemically bonds water repellent molecules to the fibres of the footwear on a sub-microscopic (nano) scale.

The technology can be applied to leather, fabrics, metals, ceramics, glass, polymers and paper.

By Joe Ayling, news editor.

Ion-mask in action, see the Youtube clip here

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Scan to shop
20th August 2008 17:33

News that Polo Ralph Lauren is set to become the first US luxury retailer to move into mobile commerce (m-commerce) – that’s shopping via a mobile phone – reminded me of an article we published on just-style a year ago looking at this retailing phenomenon in Japan, where m-commerce already exceeds traditional computer-based e-commerce.

In Japan, shopping is the most popular service available on mobile phones, even more so than downloading music, and fashion retail sites are particularly popular with young women. Most young people spend a lot of downtime commuting and so on, so for many women it's a great chance to catch up on – and buy – the latest styles.

And the fastest growing market for mobile shopping in Japan involves the integration of sites with magazines, radio and television programmes which compensate for the phones’ small screens.

Polo Ralph Lauren is initially launching its service around the 2008 US Open tennis championships, where customers can buy its special tournament collection and watch tennis videos. It’s also going to incorporate Quick Response (QR) codes in its advertisements, store windows and mailers which can be scanned by camera phones so that customers can buy the items they see.

The company sees this as opening up a new channel and providing yet another way of connecting with consumers. The only limitation at the moment is technology, but its’ only a matter of time before this gets up to speed too.

And with most people doing a lot more on their mobile phones these days than simply making and receive calls or texts, this could well be the next untapped market for retailers. But for how long I wonder?

US: Polo Ralph Lauren to launch mobile phone shopping

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More changes in US retail landscape
18th August 2008 11:41

More changes will be seen soon in the US retail market after teen apparel retailer Tween Brands said it is to convert 560 of its Limited Too stores to its more value-oriented Justice brand. Both sell fashion basics and lifestyle items to 7-14 year-old girls, but after swinging to a second quarter loss of $7.6m, from a profit of $2.1m last time, the retailer believes its focus on one store brand will appeal to customers who are trading down to lower-priced goods.

The retailer says the change to the Justice format – which is priced around 20-25% lower than Limited Too – is supported by strong sales comps at Justice and weaker comps at Limited Too. But analysts ask whether the company is being a bit impulsive in its actions, they are concerned over the disappearance of the Limited Too nameplate altogether, and caution that bad economic times won’t last forever.

Also about to disappear is PreVu Inc, the company formed last month after Wilsons The Leather Experts sold its outlet store and e-commerce assets to AM Retail Group, a wholly owned subsidiary of G-III Apparel Group for US$23.3m. The retailer has begun an immediate liquidation of its stores after running short of finances.

Footwear retailer Skechers USA has made a second attempt to buy wheeled footwear specialist Heelys, with its bid of US$142.8m or $5.25 a share tabled last week beating the $4.75-5.10 per share which was offered – and rejected – at the end of May

Just two weeks ago Heelys, whose shoes are often dismissed as a passing fad, swung to a second quarter loss of $0.4m, from a profit of $12.8m in the same period a year earlier, as sales tumbled 75% to $18.2m. But a deal could help Heelys grow internationally as well as boosting Skechers’ children’s business.

Last week US retailer Gap Inc also confirmed to just-style it will split-up its London-based design team, shifting the workload to New York. Gap, which set up the European design unit less than three years ago, wants to focus its efforts on more American-styled clothing and will now dedicate a small team of New York designers to the European range, guided by new head of design Patrick Robinson.

And as this summer's Beijing Olympics gets underway, we have taken a look at how leading brands are tussling for marketing gold. The 2008 Games has take on extra significance given the economic momentum of host nation China, but will lucrative team deals, official partnerships and timed product releases enable apparel and footwear companies to stamp a lasting impression on the Chinese market? 

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Tween Brands pins its hopes on Justice
14th August 2008 17:06

Plans by Tween Brands to convert its Limited Too stores to the lower-priced Justice format seem to have gone down like a lead balloon. Shares hit an all-time low yesterday, after analysts were less than impressed with the teen apparel retailer’s second quarter loss and asked whether it was being a bit impulsive in scrapping its 560 Limited Too stores.

The move was intended to appease the market after it swung to a second quarter loss of $7.6m from a profit of $2.1m last time. An 8% slump in same-store sales was also given as evidence that consumers are trading down to lower-priced goods. Same-store sales dropped 11% at Limited Too but rose 3% at Justice where price tags are 20-25% lower.

Tween Brands said the change is the right one in “tough economic times” when customers are trading down to lower-priced goods. But analysts aren’t so sure. They wonder whether the plan could be an over-reaction to the second-quarter earnings miss, whether Tween could have captured more value by selling the Limited Too chain, and whether Justice can drive the same mall traffic without the iconic 'Limited Too' brand name.

But most of all there seems to be concern over the disappearance of the Limited Too nameplate altogether. After all, the chain has nearly 600 stores compared to Justice’s 310. Quarterly sales at Limited Too were $145.0m while Justice generated $69.3m. A selective conversion of Limited Too stores and a smaller Limited Too chain would have been a less bitter pill to swallow.

It's easy to see why Tween wants to jump onto the Justice bandwagon, which has generated double-digit comp store sales growth year after year since the first store opened in 2004.

But it’s also worth noting that some of Limited Too’s problems are due to its merchandise, such as “a lack of spring colour within its sportswear assortment,” and “the absence of a meaningful casual bottoms business.” And that investments from fiscal 2005 to 2007 to differentiate Justice and Limited Too have suppressed operating income growth to just 2%, even though overall net sales at Tween Brands have increased 34%. 

It’s equally important to remember that bad economic times won’t last forever – and that when consumers eventually decide to trade up they may well have to look elsewhere.

US: Tween Brands to ditch Limited Too on Q2 loss

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Back-to-school on a budget
11th August 2008 13:32

A slow start to the back-to-school selling season – the second-biggest shopping period of the year after the December holidays – seems to be on the cards for many US retailers after tax-free sales events in a number of states, the last of the government’s tax rebate cheques, and even a spell of warm weather failed to boost July sales for many apparel stores.

A ‘mixed bag’ is perhaps the best description of last month’s sales reports – with the bad news that most consumers are still seeking out bargains or basics as they contend with rising gas and food prices, job uncertainty and the ongoing housing downturn.

Discounters, of course, continue to benefit from shoppers’ focus on necessities like food and fuel, with Wal-Mart posting a 3% gain in same-store sales. But even here there are clouds on the horizon, with the world’s largest retailer forecasting a sales slowdown in August as the stimulus cheques come to an end. Its main rival, Target Corp, saw its same-store sales slip 1.2%.

Mall-based apparel specialists such as Gap and Limited Brands continue to be disappointed as consumers shun non-essential items like clothes and shoes.

The main worry now is where the next boost in spending is going to come from, particularly when back-to-school shopping is completed in September. The likelihood is that consumers will be looking for bigger discounts to persuade them to part with their money. But deep markdowns will put extra pressure on gross margins in the second half of the year – which is something most retailers can ill afford.

Elsewhere the retail shake-out continues, with US department store chain Boscov's the latest to file for Chapter 11 bankruptcy protection. The retailer is to close ten underperforming stores as it tries to reorganise its business, but has secured $250m debtor-in-possession financing to support it through its restructuring.

But it’s good news for casual clothing chain Steve & Barry's, which filed for Chapter 11 bankruptcy protection early last month and has now has received an offer of $163m for some of its assets. This will serve as the opening bid in an auction process due to take place this month, and could be subject to higher proposals.

And it’s full-steam ahead for sporting goods giant Adidas which has lifted its full-year guidance after posting an 11.7% jump in second quarter profit to EUR116m (US$179.5m). Sales were up 5% to EUR2.52bn, driven by strong demand for its Adidas and TaylorMade-Adidas Golf brands. The firm, which is an official sportswear partner of the Beijing 2008 Olympic Games, also said it is on track to achieve sales of more than EUR1bn in China by 2010 – and that China will become its second-largest revenue earner after the US by the end of this year.

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