NEW YORK — Mass merchants continue to gobble up more of the apparel market, often at the expense of department stores, with the Big Three discounters — Wal-Mart, Kmart and Target — continuing to dominate the field.
Purchases of apparel at stores including discounters, off-pricers, national chains like Sears and Montgomery Ward, factory outlets and warehouse clubs, topped $60 billion, capturing an additional 0.9 percent of total market share in 1993, compared with the previous year.
While less than one point might not seem like a lot, the mass segment’s cut represents 47 percent of the $129 billion apparel market, according to the NPD Consumer Purchase Panel, which tracks apparel purchases through a monthly survey of 16,000 nationally representative households.
The data reinforces the idea that store loyalty, particularly among department-store customers, is not the draw it once was. The research also indicates that consumers look to retailers other than mall-based department and specialty stores to satisfy their need for value.
“Discount stores’ share of market continues to grow, but there is a recurrent theme,” said Michael Hand, NPD vice president. “The big three continue to be the engine driving this market. They now account for 63 percent of all apparel sales at discount stores, versus 48 percent five years ago.”
Mark Pucci, president and chief executive officer of Walker Group/CNI, a retail consulting firm here, said the quest for value has stripped away customer loyalty in many cases.
“Loyalty doesn’t automatically jump back when a recession is over,” he said, noting that consumers often discover more shopping options in down economic times. Value could translate into price, service or a more pleasant or stimulating shopping environment, Pucci observed.
The three discount leaders’ volume in women’s apparel grew to $7 billion in 1993 from $4.2 billion in 1988, while other discount stores have actually lost volume in women’s apparel, to $4.2 billion last year from $4.5 billion in 1988.
The total apparel market grew by 5.3 percent to $129 billion in 1993, compared to $122 billion in 1992. All purchases of women’s apparel rose 4.1 percent to $67.6 billion, from $64.9 billion in 1992.
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In women’s apparel, mass merchants gained about $1.3 billion to $26.8 billion from $25.4 billion, representing 40 percent of all women’s apparel purchases in terms of dollars, up just under 1 percent compared to 1992.
Following is the mass-market breakdown of women’s apparel purchases in 1993 against 1992.
Factory outlet sales of women’s apparel grew 19.3 percent to $2.3 billion from $1.9 billion.
Discount store sales of women’s clothing rose 7.1 percent to $11.2 billion from $10.4 billion.
Off-pricers gained 3.4 percent in women’s apparel sales, to $4.3 billion, up from $4.2 billion in 1992.
Women’s apparel sold through warehouse clubs moved ahead by 1.5 percent in 1993, to $416 million from $409 million.
Purchases of women’s apparel at major chains, like Sears and Ward’s, were almost flat, up 1.1 percent to $8.6 billion.
Of the more than $60 billion in all apparel purchases from mass merchants, clothing purchases at discounters were up 8.3 percent to $26.4 billion; major chains’ sales increased 4.5 percent, achieving almost $20 billion, and apparel sales at warehouse clubs grew by 4 percent, reaching slightly more than $1 billion.
For all apparel, department store purchases rose 1.6 percent to $29.2 billion, from $28.7 billion in 1992.
Specialty stores did a bit better, as NPD reported a 2.6 percent gain, to $23.2 billion in sales, while specialty chains registered a 4.7 percent sales gain, to $10 billion.
Apparel purchases through direct mail jumped 11.7 percent over 1992, accounting for more than $7.7 billion in sales.
NPD said purchases of women’s apparel at traditional stores were weak by comparison, rising 0.4 percent to $16.6 billion at department stores and up 2.9 percent to $15.1 billion at specialty stores. Specialty chains’ sales rose 7.6 percent to $8.1 billion, and women’s apparel purchases through direct mail were up by 11.7 percent, gaining $535 million to $5.3 billion.