Retailers get active with sportswear deals
NEW YORK Demand for sportswear and activewear has risen significantly and retailers have the ball in their courts. Target and other “big-box retailers are moving more and more into the sportswear category,” said Eric Beder, senior vp of Brean Murray, Carret & Co., a securities firm. “In fact, it’s gaining momentum,” he added.
According to The NPD Group, apparel intended for sports’ use went up by approximately $2 million in dollar volume sales between 2005 and 2007.
To that tune, Kohl’s and Fila Luxembourg announced a multiyear licensing agreement, naming Kohl’s as the exclusive U.S. retailer for FILA Sport. The collection features women’s, men’s and children’s apparel, along with footwear and accessories. Customers can expect to get their fill of fitness apparel, swimwear, outerwear, robes, maternity, printed tees and shorts in Kohl’s stores nationwide, as well as on Kohls.com during the fall 2008 season. In addition to apparel and accessories, the line will include sports equipment, such as inflatable shin guards and yoga mats. When it comes to footwear, Kohl’s will be working very closely with the Fila design team to create quality merchandise.
“Sportswear is very brand driven,” said Beder. “It is tough for Target or Wal-Mart or Kohl’s to create their own brand that will work for them. The national brands have cachet. They have meaning—more than fashion apparel. So, the way to go about that is to get involved with the brands.”
Nike Inc. recently announced the Converse One Star distribution deal with Target, starting February 2008. The One Star suede shoe will sell between $29.99 and $39.99. In addition, the collection will include vintage inspired contemporary sportswear for men and women that includes denim, non-denim bottoms, knits, wovens, graphic tees, sweaters, dresses, skirts and outerwear. Footwear will carry exclusive and limited product for men, women and children.
As Converse celebrates its centennial in 2008, One Star continues to shine. The 1974 debut of the suede version was quickly adopted by the West Coast surf and skate scene of the 1970s and 1980s, as well as by the grunge music scene of the 1990s. With fashion coming back full circle, Converse One Star hits the bull’s-eye. “Few years back, Target partnered with C9 by Champion activewear and it worked extremely well for them,” said Beder. “The discount product shopper wants brand names. In sportswear, that’s a big thing.” If Targets plays its cards right, Converse One Star should gain similar success.
In order to get a piece of the market, Dillard’s launched the Tranquility Shop, a department that features yoga-inspired, multi-purpose activewear complete with six active apparel lines. Already in 25 Dillard’s locations, the retailer plans to expand the department to 100 stores for the spring 2008 season. The department makes a perfect nest for the blooming activewear segment that is inspired by the population of yoga- and pilates-loving consumers, said Julie Bull, spokeswoman for Dillards Inc. “We try to appeal to our customers’ changing tastes and preferences,” she added.
To cash in on sportswear and activewear, retailers should seriously consider a partnership with a national brand. “It’s very difficult to create your own brands inside a department store,” said Beder. “You are not going to get premium pricing for merchandise, because the customer won’t recognize the brand.”