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Express Lane for January 12

The Retail Email blog has a roundup of this morning’s e-commerce email blasts with attention being paid to today’s email from Saks. The e-mail, entited “8 Great Reasons to Shop Saks.com“, calls attention to some of the new and improved functionality that the retailer has added to their site. Great way to call attention to improvements on the site that may have been implemented over a period of time or that the users may not have realized are there. I think it gets them to explore new areas of the store that they may not have been aware of before.

StorefrontBacktalk has some of the early numbers from this year’s National Retail Federation annual show. Registration and exhibitors are down from last year, but international vendors who will be at the show.

In more NRF news, PredictiveRetailer has a recap of Day 1’s social media happenings. It’s a great review of blog posts and tweets referencing the day’s different sessions. Looking foward to seeing the recap for the rest of the sessions!

For those not attending the NRF Big Show, don’t forget you can use Twitter search to follow the NRF keyword to keep up to date with what’s going in in New York this week. There’s a bunch of attendees who are on Twitter and there’s been some good ideas and comments being posted there. I’ll be Tweeting from the Expo Hall tomorrow.

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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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$376 million IPO for J.Crew

J. Crew

J. Crew’s IPO today was pretty successful.

Strong interest in the stock priced it higher than originally anticipated (target was $15-17/share, offering price was actually $20) yet the stock still climbed over 25% in first day trading, currently hovering at $25.78 in after hours trading. The IPO raised $376 million, making it the third largest retail apparel IPO in history(after Intimate Brands in 1995 and Saks Holdings in 1996) in history.

Good day for J. Crew, indeed.

Not a bad day for Millard Drexler, who has led the turnaround of the company over the past few years, either. He also has a 22% stake in the company, making him $82 million richer right now (on paper, at least).

Here’s a run down of the coverage: ABC News/Associated Press, Reuters, MSNBC and Bloomberg.

In celebration of today’s IPO, I wore my favorite J.Crew dress shirt to work today. It wasn’t actually planned, it just happened to be the cleanest thing in my closet this morning.

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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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