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Ann Taylor, Atlantic City

In September, Ann Taylor opened their new location at The Pier at Caesar’s in Atlantic City. I didn’t get to talk about it at the time, but I was so impressed by the look of the store. I think that Ann Taylor is one mall-retailer that is doing things right, as far as visual merchandising. They’ve got a great mix of ideas in the store that create a very exciting athmosphere. I can’t think of one store that I’ve walked past in any mall, or “lifestyle center”, that doesn’t look inviting and well kept. Great representation of the brand.

They’ve posted a 5.3% decrease in same store sales for December. I don’t think this says all that much about Ann Taylor itself, rather speaks more about the rough month that the industry as a whole faced.

The pictures below are from the Atlantic City location. They were taken in October.

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Don’t forget about the women under 5′4

Back in May, the talk was about how Neiman Marcus, Saks Fifth Avenue, and Bloomingdale’s had scaled back or eliminated their petite department (see my post: Where’s the Petite Department). This did not go over well, as there is still a large segment of the population who is shopping for petite clothing. A few weeks later, Saks recanted and announced that they would be increasing their petite offerings for the fall (see my poist: Sak’s restores petite department after outcry).

I came across this excellent article in today’s Ventura County Star business section. It is called Size Matters: Petite apparel appears to be in short supply. It is extremely well written and very detailed about the state of the petite department in today’s stores.

Petite clothing sales generated $8.9 billion in 2005, remaining flat owing to the lack of choices from manufacturers and retailers, according to market researcher Mintel International Group Ltd. in Chicago.

But image consultant Ellen York argues there are still 43 million petites in the United States who will not let the specialty size die. Studies show that as many as 43 percent of women in the U.S. could be classified as petite.

The biggest issues I’ve seen facing the petite department in America today is not offering the fashion that women want and not adapting quickly enough to demand. There are a few retailers that I’ve watched that have offered petite clothing but, the be blunt, have half assed it. Owning such a small penetration of the overall company’s business, petites is a department that can get quietly brushed aside by some retailers. That’s led to bad fashion and bad inventory control at at least three major retailers that I’ve watched over the past 18 months.

Retail’s biggest mistake with the petite department: Just because the woman is short, fashion buyers seem to assume she is old, or at least wants to dress old. Across the board, the fashion offerings in Misses Contemporary Sportswear divisions, in most retailers, is not as “old” looking as it once was. A woman who is 50 or 60 today doesn’t want to wear elastic waist pants and dull color choices. The shift is towards fashionable but appropriate clothing. Misses departments have reacted to this - Petite departments have not. Where’s the clothing for the short 25 year old woman who is just starting her career? It appears that most retailers are just reacting to this now (as in the past few seasons) and offering the clothing she needs. I think that explains one reason why sales have been flat.

Department stores have not reacted quickly enough to this change in fashion trends, explaining why it looks like they have lost marketshare, in the petites department, to mall-based specialty retailers like Ann Taylor and Banana Republic. The biggest challenge is going to be the continuing turnaround of this department in most department stores, trying to reclaim that lost marketshare.

Like I said, the article above is really great. Lots of detail and insight into the petite apparel business and where it is going today.

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Is Atlantic City the next retail mecca?

Greetings from Atlantic City

Let me say this first, I love Atlantic City. I do enjoy playing cards and sitting in front of an Elvis slot machine. Although my last few trips haven’t been very successful, I have enjoyed watching the development of The Pier at Caesars unfold.

The Pier at Caesars is a $200 million redevelopment project of the former Ocean One Mall on the beach in Atlantic City. Boasting a mix of high and mid level retailers (Coach, Gucci and Louis Vuitton meet Ann Taylor, Quiksilver, Gymboree and Victoria’s Secret), this mall has been eagerly anticipated by tourists and residents alike.

The mall officially opened on Tuesday, although it is only the first phase. About a dozen of the ninety stores are open, with none of the resturaunts open yet. Developers say that more stores will open throughout the Summer with everything open by Labor Day. Work is still being done on some of the more decorative pieces, including fountains and billboards.

A good overview is the mall and the opening is available from the Associated Press: Once Tacky Resort City Gets More Class. The Press of Atlantic City has another, localized article about the opening which says that opening day was not all that impressive to some shoppers.

The Pier at Caesars is the second major retail project the town has. 2005 saw the opening of The Walk, aka the Atlantic City Outlets. This $76 million retail development project is beautiful - a great mix of stores that seems to be doing extremely well. From Gap to Polo Ralph Lauren to coffee at Starbucks, I have enjoyed walking this outdoor mall. Last year, the Baltimore Sun had an excellent article about the retail development of Atlantic City, with a focus on The Walk.

With all of this retail development in a city that is increasingly focusing on non-casino offerings, Atlantic City has become a great place to visit for those who are interested in visual merchandising and creative retail solutions. I have already enjoyed trips to The Walk and I am very interested in going to see The Pier at Caesars. I believe shoppers and tourists will respond well to the mix of stores available in Atlantic City.

This isn’t the end of large scale, non-casino development in Atlantic City. I can’t wait to see what the next few years bring.

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Retail’s May numbers off to a positive Summer start

The May comp store numbers for the retail industry:

In the mall: Abercrombie up 3.0, Aeropostale down 1.1, American Eagle up 11.0, Ann Taylor up 12.0 , Hot Topic down 6.0, Limited Brands up 7.0, and Pacific Sunwear down 2.6. Gap as a company was down 6.0, however the break down between companies is interesting. Gap North America was down 5.0, Gap International is down 13.0, Old Navy was down 8.0, but Banana Republic is starting to show signs of a turnaround with a 3.0 positive comp.

In the department store sector: Dillard’s up 3.0, Federated up 9.2, JC Penny up 11.1, Kohl’s up 3.1, Nordstrom up 7.8, and Saks up 5.7.

In the battle of Target v. Wal-Mart and warehouse stores v. warehouse stores, Target was up 5.7 & Wal-Mart was up 2.0. Sam’s Club was up 4.0 while BJ’s Wholesale was up 4.2 and Costco was up 10.0.

Generally a pretty positive month across the board. Gap continues to struggle and Kohl’s is curiously one of the few companies with positive marks that didn’t beat investor estimates. Pacific Sunwear was down 2.6 after a fantastic April in which they posted a 14.0 positive comp.

Minyanville posts a good roundup of the May numbers, covering some retailers I didn’t cover here.

Interesting month and a good start to the Summer season in retail.

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Retail Roundup: Abercrombie, American Eagle, Kohl’s, Wal-Mart

Minyanville has posted a great roundup of all of the retail sales reports for April. They’ve got comp percentages for just about everyone and snarky comments for about half. I love it.

Retailers benefitted from the late Easter and most were really able to drive sales through the roof. Great numbers for some of the chains, not so great for others. Department and discount stores mainly show positive results: Federated down .8, Target up 10.4, Wal-mart up 6.8, Kohls up 13.4, Jc Penny up 2.6, Dillards up 10, Nordstrom up 7.3. Teen specialty retailers continue to show positive results: Abercrombie up another 17, Aeropostale up 8.4, American Eagle up 19, Pacsun up 14. The rest of the mall is hit and miss with Ann Taylor up 10.9, Children’s Place up 22, Claire’s Stores up 9 but Gap continues it’s downward trend, down 3 and Hot Topic was down 6.5.

Generally a pretty positive month but those with few suprises in retailers who didn’t beat their estimates or show a positive trend.

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